Retirement Calculator
Find out how large a retirement corpus you need to maintain your lifestyle. The calculator projects your expenses forward using inflation, then works out the lump sum required to fund a comfortable, worry-free retirement.
To retire at 60 on today's ₹50,000 a month lifestyle, you need a corpus of about ₹7.64 Cr — that funds inflation-adjusted expenses of around ₹2.87 L/month through to age 85.
How the Retirement Calculator works
The calculator first inflates your current monthly expense to your retirement age, so you know what your lifestyle will actually cost when you stop working. It then computes the corpus needed to fund those rising withdrawals across your retirement years, using the real (inflation-adjusted) rate of return on your post-retirement investments. This ensures your savings keep pace with the cost of living for as long as you live.
Why the corpus looks large
A retirement corpus often runs into several crores, and that is normal. You are funding two to three decades of expenses with no salary income, against the backdrop of compounding inflation. The figure is large precisely because it has to sustain a rising cost of living for 20–30 years without you adding fresh income.
How to bridge the gap
- Start a dedicated retirement SIP as early as possible — time is your biggest ally.
- Maximise EPF, PPF, and NPS contributions for tax-efficient, long-term growth.
- Step up your investments each year as your income rises.
- Revisit this calculation every few years and adjust for changes in lifestyle and inflation.
Frequently asked questions
How much money do I need to retire in India?
Your retirement corpus depends on your current lifestyle, inflation, and how long you expect to live. The widely used approach is to project your current monthly expenses to your retirement age using inflation, then calculate the lump sum needed to fund those inflation-adjusted withdrawals through your post-retirement years. This calculator does exactly that.
Why does inflation matter so much for retirement?
Inflation quietly erodes purchasing power. At 6% inflation, expenses that cost ₹50,000 a month today will cost over ₹2.8 lakh a month in 30 years. Ignoring inflation is the most common retirement planning mistake — your corpus must be large enough to fund a rising cost of living, not today’s prices.
What is a realistic post-retirement return?
After retiring, most people shift to safer, income-oriented investments such as debt funds, senior citizen schemes, and balanced portfolios. A post-retirement return of 7–8% is a reasonable assumption in India. The calculator uses the real (inflation-adjusted) return to ensure your corpus keeps pace with rising expenses during retirement.
How do I build this corpus?
Once you know your target, work backwards. A monthly SIP in equity mutual funds, NPS, EPF, and PPF are the typical building blocks. Starting early is the single biggest advantage — thanks to compounding, beginning in your 20s requires a far smaller monthly investment than starting in your 40s for the same goal.
What is the 25x or 30x rule for retirement?
A popular thumb rule says you need a corpus of roughly 25 to 30 times your annual expenses to retire comfortably. So if you spend ₹12 lakh a year, you would target ₹3–3.6 crore. The higher 30x multiple is safer for India given longer life expectancy and higher inflation than Western markets, where the rule originated.
Does the 4% withdrawal rule work in India?
The 4% rule suggests withdrawing 4% of your corpus in year one and adjusting for inflation thereafter. In India it is best treated cautiously — with inflation often near 6% and longer retirements, many planners suggest a more conservative 3–3.5% safe withdrawal rate. Keeping part of your corpus in equity even after retiring helps it outpace inflation over a 25–30 year span.
How should my asset allocation change near retirement?
In your accumulation years a higher equity allocation (via SIPs and NPS equity) drives growth. As you approach retirement, gradually shift a portion towards debt — debt funds, the Senior Citizens’ Savings Scheme (SCSS), and bank FDs — to protect against market crashes when you can least afford them. A common approach is to keep 2–3 years of expenses in safe instruments and let the rest stay invested.
Where should retirees park money for regular income?
Indian retirees commonly use the Senior Citizens’ Savings Scheme (up to ₹30 lakh, paying around 8.2%), the Pradhan Mantri Vaya Vandana Yojana, the Post Office Monthly Income Scheme, and an SWP from a balanced or debt mutual fund for tax-efficient monthly cash flow. Spreading money across these instruments balances safety, liquidity, and a rising income stream against inflation.
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The results shown are estimates for illustration only, based on the inputs and assumptions you provide. Actual returns, interest, and tax depend on market conditions, prevailing rates, and applicable laws, which change over time. This is not investment, tax, or financial advice — please consult a qualified advisor before making decisions.