How much corpus do I need to retire?

The most widely used rule is the 25x rule: multiply your expected annual expenses at retirement by 25. This derives from the 4% safe withdrawal rate - withdrawing 4% per year means 1/0.04 = 25 years of expenses needed. But you must use inflation-adjusted expenses at retirement, not today's expenses. If today's annual expenses are ₹8 lakh and you retire in 20 years at 6% inflation, those expenses become ₹25.7 lakh at retirement - meaning you need a corpus of ₹6.4 crore (25 x 25.7L). Use our retirement calculator to compute this precisely based on your current age, target retirement age, and today's monthly expenses.

What is the 4% withdrawal rule?

The 4% rule originates from the 1994 Trinity Study which found that a 60% equity, 40% bond portfolio could sustain 4% annual withdrawals (adjusted for inflation each year) for 30 years in virtually all historical scenarios. In Indian context, this translates to: ₹1 crore corpus can support ₹4 lakh per year (₹33,333 per month) indefinitely. A balanced portfolio earning 10% nominal with 6% inflation gives approximately 4% real return - validating the rule. For a 35 to 40-year retirement horizon (if retiring at 45 to 50), use a more conservative 3 to 3.5% withdrawal rate. The 4% rule assumes continued equity exposure post-retirement, not a move to pure FDs.

How does inflation affect retirement planning?

Inflation is the silent destroyer of retirement plans. At 6% annual inflation, today's ₹50,000 monthly expenses become ₹1.6 lakh in 20 years and ₹2.87 lakh in 30 years - meaning you need 5.7 times more income just to maintain the same lifestyle. Healthcare inflation in India runs at 8 to 10% annually, significantly above general CPI. An underfunded retirement corpus depletes far faster than expected because withdrawals must increase each year just to keep up. The solution is to keep at least 40 to 50% of the retirement corpus in equity (through balanced funds or index funds) so investment growth continues to outpace inflation even after you stop working.

When should I start saving for retirement?

The single most important factor in retirement wealth is not how much you save but how early you start. Due to compounding, starting 10 years earlier can triple your retirement corpus. Specifically: ₹10,000 per month at 12% for 35 years (starting at 25) grows to ₹6.45 crore. Starting at 35 with the same amount for 25 years gives only ₹1.89 crore - less than one-third, despite investing for only 10 fewer years. If you are above 30 and have not started, the answer is still to start now and maximise contributions. The second-best time to start is today. Missing another year costs more than the year's contributions - it costs all the compounding on those future contributions.

What investments are best for retirement?

A diversified combination that shifts over time works best. In your 20s and 30s: 70 to 80% in equity (Nifty 50 index fund, Flexi-cap fund, mid-cap fund) for maximum compounding; the rest in PPF and EPF. In your 40s: shift to 60% equity, 40% debt (PPF, NPS, short-duration debt funds). In your 50s: move to 40% equity, 60% debt as capital preservation becomes primary. Specific instruments to prioritize: EPF (8.25% tax-free, employer matches your contribution - free money); PPF (7.1% EEE tax-free, government-guaranteed); NPS (equity option delivering 12 to 14% historically, with extra ₹50,000 tax deduction under 80CCD(1B)); equity mutual funds for long-term growth. Never keep retirement savings entirely in FDs - inflation will erode real value over 20 to 30 years.

How do I account for existing savings in retirement planning?

Your current EPF balance, PPF balance, NPS corpus, and other investments already have a head start. Enter them as 'current savings' in the retirement calculator. These savings will compound at their respective rates until retirement, reducing the additional monthly SIP you need. For example, if you have ₹15 lakh in EPF today and it grows at 8.25% for 25 years, it becomes approximately ₹1.1 crore at retirement - reducing your required monthly savings significantly. Run the calculator with and without existing savings to see the impact. Update your inputs annually as EPF, PPF, and investment values change to keep your retirement plan accurate.

How do I adjust my retirement plan if I start late?

Starting late does not mean giving up - it means increasing contributions and optimising every lever available. Practical adjustments: increase the savings rate aggressively (aim for 25 to 35% of take-home instead of the standard 20%), extend your retirement age by 3 to 5 years (each additional year both adds contributions and reduces the drawdown period), maximise employer matching in EPF and NPS before any other investment (it is literally free money), redirect lifestyle expenses to savings (no lifestyle inflation from the current year forward), and use tax shelters fully (EPF, PPF, NPS 80CCD(1B) for Rs. 50,000 extra deduction). Even starting at 45 with aggressive savings, equity SIPs can build a meaningful corpus by 60 due to the compounding of even 15 years of disciplined investing.

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Retirement Calculator

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

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 past 80. 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.

The numbers are sobering. A 30-year-old spending ₹50,000/month today will need approximately ₹2.87 lakh/month in retirement (at 6% inflation over 30 years). To sustain that for 20 years, they need a corpus of roughly ₹3.7 crore at a 7% real return - and if the retirement lasts 30 years, closer to ₹5 crore. The monthly SIP needed at age 30 (at 12% returns) is around ₹10,000-15,000, but the same goal at age 40 requires ₹30,000-40,000/month. Every year of delay roughly doubles the required savings rate.

This calculator uses real-return methodology (investment return minus inflation) to compute corpus needs - the same approach used by certified financial planners in India. Enter your current age, target retirement age, today's monthly expenses, and your existing savings to get a personalised retirement roadmap. Adjust the return rate between 8-14% depending on your asset allocation - more equity means higher expected returns but also higher volatility.

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25x Rule

Corpus needed = 25x your annual expenses at retirement - derived from the 4% safe withdrawal rate

Global standard

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Compounding Gap

Starting at 25 vs 35 can mean a 3x larger corpus - every decade of delay triples your required monthly SIP

Start early

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Inflation Impact

₹50K/month today = ₹2.87L/month in 30 years at 6% inflation - plan for inflated expenses, not today's

6% CPI avg

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EPF + NPS First

Maximize EPF (free 12% employer match at 8.25%) and NPS (extra ₹50K deduction) before any taxable option

Free returns

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 almost no social security net. EPF, despite being mandatory for formal employees, typically accumulates only ₹30-50 lakh for an average salaried career - a fraction of the ₹3-7 crore corpus needed for a comfortable 25-year retirement. The gap between what people save and what they actually need is enormous, and most people only discover this when it is too late to close it.

The mathematics of late starts are brutal. A 25-year-old needs to invest ₹8,000/month to build a ₹5 crore corpus by 60 at 12% returns. The same goal at 35 requires ₹28,000/month - 3.5 times more. At 45, it becomes ₹1.1 lakh/month - practically impossible for most households. Every year of delay is not just one more year of missed compounding, it is exponentially higher required savings going forward. This is not a motivational exaggeration - it is straightforward compound interest math.

The post-retirement phase is as important to plan as the accumulation phase. A 60-year-old who retires today in India can expect to live until 78-82. That is 18-22 years during which the corpus must not only sustain withdrawals but also keep pace with inflation - particularly healthcare inflation, which runs at 8-10% annually in India. This means keeping at least 40% of the corpus in equity even after retirement, and planning for healthcare corpus separately. Running out of money in your 70s is a real and preventable risk - which is exactly what this calculator helps you avoid.

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Retirement Calculator

About the Retirement Calculator

Retirement Corpus Formula

Worked Example

Tips & Insights

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Frequently Asked Questions