How much corpus do I need to retire?

A common rule is the 25x rule: multiply your annual expenses by 25. If you spend ₹8L/year, you need ₹2 crore. This assumes a 4% safe withdrawal rate.

What is the 4% withdrawal rule?

The 4% rule states that retirees can withdraw 4% of their retirement corpus annually without running out of money for 30 years, assuming balanced investment.

How does inflation affect retirement planning?

Inflation erodes purchasing power. If today's monthly expenses are ₹50,000, at 6% inflation, you'll need ₹1.6L/month after 20 years.

When should I start saving for retirement?

As early as possible. Starting at 25 vs 35 can mean 3-4x more corpus at retirement due to compounding - even with the same monthly investment.

What investments are best for retirement?

A mix of equity (for growth) and debt (for stability) works well. Common choices include NPS, PPF, ELSS mutual funds, and EPF.

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Retirement Calculator

Find out how much you need to save monthly to retire comfortably.

Current Age

18 yrs55 yrs

Retirement Age

45 yrs75 yrs

Monthly Expenses (Today)

₹20,000₹10.00 L

Inflation Rate

3.0%12.0%

Investment Return

6.0%20.0%

Current Savings

₹0₹10.00 Cr

Retirement Corpus Required

₹4.01 Cr

For 20 years post-retirement

Monthly Savings Required

₹7,183

For next 30 years

Corpus covered by existing savings37.4%

Future expenses/month

₹2.87 L

Savings at retirement

₹1.50 Cr

Shortfall of ₹2.51 Cr between projected savings and required corpus. Save ₹7,183/month to close the gap.

Savings growth vs corpus target

About the Retirement Calculator

Retirement planning in India is fundamentally different from the West - most Indians lack pension coverage, EPF is insufficient for most, and life expectancy is rising. The core question is: how large a corpus do I need, and how much do I save monthly to get there? The answer depends on your current age, expected retirement age, monthly expenses, inflation, and post-retirement returns. Getting this right is not optional - it is the single most important financial calculation of your life.

Retirement Corpus Formula

Corpus needed = Annual expenses at retirement × 25 (at 4% withdrawal rate) · Monthly SIP = PMT(r, n, 0, -FV) where r = monthly return, n = months to retirement

Annual expenses at retirement = Today's expenses × (1 + inflation)^years · 4% rule: withdraw 4% of corpus annually for 30 years · Monthly return r = annual return / 12 / 100

Worked Example

35-year-old targeting retirement at 60, spending ₹60,000/month today

Current monthly expenses:₹60,000

Inflation rate:6% p.a.

Years to retirement:25 years

Post-retirement return:7% p.a.

Monthly expenses at 60 ≈ ₹2.57L · Corpus needed ≈ ₹7.7 crore · Monthly SIP required (at 12% returns) ≈ ₹38,000

Tips & Insights

1
Use 6% for inflation in general expenses, 8% for healthcare, and 10% for education costs in your planning.
2
The 25x rule (corpus = 25x annual expenses) assumes a balanced 60/40 equity-debt portfolio post-retirement.
3
Maximize EPF contributions - your employer's 12% contribution is free money compounding at 8.25% tax-free.
4
NPS gives an extra ₹50,000 deduction under 80CCD(1B) beyond the 80C limit - use it before other options.
5
Equity allocation should be roughly (100 - age)% until 55, then gradually shift to debt to protect the corpus.
6
Plan for a 30-year retirement, not 20 - longevity risk (outliving your money) is as real as market risk.
7
Factor in one-time expenses: child's education, marriage, health emergencies, and home renovation.

Why this matters for you

India has one of the world's largest unretired populations with minimal social security. A retired couple spending ₹60,000/month today will need over ₹7 crore in 25 years - and most people dramatically underestimate this. Starting SIPs even 5 years earlier can reduce the monthly savings needed by 40%. The compounding math is unforgiving for late starters.