Retirement Planning

Retirement Planning Calculator

Plan your retirement corpus with inflation and goal tracking for a secure future

Retirement Goals

Retirement Planning Tips

Start Early

  • • Power of compounding works best over time
  • • Starting at 25 vs 35 makes huge difference
  • • Even small amounts grow significantly
  • • Review and adjust plan every 2-3 years

Investment Mix

  • • Equity for growth (60-70% when young)
  • • PPF, NPS for tax-saving retirement corpus
  • • Debt for stability (increase with age)
  • • Real estate as inflation hedge

Frequently Asked Questions

How much money do I need for retirement?

Rule of thumb: 20-25 times your annual expenses. If you spend ₹5L/year now, you'll need ₹1-1.25 crore at retirement (adjusted for inflation). This calculator uses 4% safe withdrawal rate - your corpus should last 25+ years. Consider inflation (6-7%), increased medical costs, and lifestyle changes.

When should I start retirement planning?

Start in your 20s or as soon as you start earning. Power of compounding works best over long periods. Starting at 25 vs 35 can mean 2-3x difference in final corpus. Even small monthly investments (₹5K-10K) grow significantly over 30-35 years. Late start needs much higher monthly contribution.

What is a safe withdrawal rate for retirement?

4% is considered safe globally and used in this calculator. It means if you have ₹1 crore, you can withdraw ₹4 lakhs per year (₹33K/month) and your money should last 25+ years. Adjust based on inflation, investment returns, and life expectancy. Conservative: 3-3.5%, Aggressive: 5-6%.

Where should I invest for retirement?

Diversified portfolio: 20s-40s: 60-80% equity (mutual funds, stocks) for growth. 40s-50s: 50-60% equity, add debt funds, PPF, NPS. 60+: 30-40% equity, rest in fixed income. Use NPS (National Pension System) for additional tax benefits. Avoid keeping everything in fixed deposits - won't beat inflation.

What is NPS and should I invest in it?

NPS (National Pension System) is government-backed retirement scheme. Benefits: Additional ₹50K tax deduction (Sec 80CCD(1B)), low cost, market-linked returns (8-12% historically), mandatory annuity ensures lifetime pension. Drawback: Lock-in till 60, only 60% lump sum withdrawal at maturity. Good supplement to EPF/PPF.

How do I factor in inflation for retirement planning?

India's long-term inflation is 6-7%. Your ₹50K monthly expenses today will become ₹1.5-2L after 25 years. This calculator adjusts your current expenses for inflation to estimate future corpus needed. Keep some equity even in retirement to beat inflation and make corpus last longer.

How to Use This Calculator

  1. 1

    Enter your current age and planned retirement age (typically 55-60 years). This determines your investment horizon.

  2. 2

    Input current monthly expenses. The tool will adjust this for inflation to estimate expenses at retirement.

  3. 3

    Add existing savings/investments. This grows with your expected returns and contributes to final corpus.

  4. 4

    Set inflation rate (6-7% typical) and expected investment returns (10-12% for equity). View required monthly SIP to reach your goal.

Key Terms & Definitions

Retirement Corpus
Total amount needed at retirement to sustain your lifestyle. Calculated using future expenses and life expectancy (typically 25-30 years post-retirement).
4% Withdrawal Rule
Safe annual withdrawal rate from retirement corpus. With ₹1 crore, you can withdraw ₹4L/year and money should last 25+ years.
Inflation Adjustment
Increasing expenses each year to account for rising costs. Historical India inflation: 6-7%. Your corpus must grow faster than inflation.
Asset Allocation
Distribution of investments across equity, debt, gold, real estate. Changes with age - higher equity when young, more debt near retirement.
NPS (National Pension System)
Government retirement scheme with tax benefits (₹50K extra under 80CCD(1B)), low cost, and mandatory annuity at maturity.

Formulas & Calculations

Future Monthly Expenses

Future Expenses = Current Expenses × (1 + Inflation Rate)^Years

Example: ₹50K now, 6% inflation, 30 years → ₹50K × (1.06)^30 = ₹2.87L per month at retirement.

Required Retirement Corpus

Corpus = (Future Monthly Expenses × 12) / 0.04

Using 4% safe withdrawal rate. Example: ₹2.87L/month = ₹34.4L/year. Corpus needed = ₹34.4L / 0.04 = ₹8.6 crore for 25+ years.

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