At retirement, your active salary stops, but expenses continue. Due to inflation, your expenses will grow. Learn how to size your nest egg to prevent outliving your wealth.
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Retirement Planner
Estimate the total retirement corpus you require to sustain your lifestyle after work.
Retirement Planner
Projections Output
Required Retirement Nest Egg₹0
Required Monthly Retirement SIP₹0 / month
Monthly inflated expenses at retirement₹0 / month
What is a Retirement Planner?
Estimate how much money you need to save for retirement. Calculate your required corpus based on current age and inflation.
How to Use This Calculator
- Enter your primary figure—such as your gross salary, product price, or target investment amount—into the base input field.
- Adjust the sliders or type numbers directly into the fields to specify parameters like interest rates and tenure duration.
- Enter any additional applicable values, such as tax-saving deductions, extra fees, or custom contribution percentages.
- Review the instant breakdown results, evaluate the visual compounding charts, and download the full breakdown as a PDF report.
Example Calculation: Compounding Investment Example
This table shows a realistic example calculation based on standard parameters. Enter your custom numbers in the sliders above to compare results.
| Parameter | Sample Value |
|---|---|
| Investment Style | Monthly SIP |
| Monthly Contribution | ₹10,000 |
| Expected Return Rate | 12% per annum |
| Duration Period | 15 Years |
| Total Maturity Value | ₹50,45,760 |
Retirement Planning & The Inflation Factor
Mathematical Formula:
Inflated Expenses = Current Expenses * (1+inflation)^Years | Corpus required computed using post-retirement annuity formulas
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Frequently Asked Questions
How much money do I need to retire in India?
A standard guideline is to build a retirement corpus that is at least 25 to 30 times your estimated annual expenses, also known as the 4% rule. For example, if your current annual living expenses are ₹6,00,000, you will need a capital pool of at least ₹1.5 crore to ₹1.8 crore at retirement. However, you must also factor in inflation; at a 6% inflation rate, ₹6 lakh in expenses today will swell to ₹19.1 lakh in 20 years. Use our planner tool above to input your current age and calculate your exact adjusted corpus.
At what age should I start saving for retirement?
You should start saving for retirement as early as your very first paycheck to maximize the compounding effect. For instance, if you start investing ₹5,000 per month at age 25, at a 12% CAGR, you will accumulate ₹3.24 crore by age 60. However, if you delay starting until age 35, you would need to invest ₹17,000 per month to reach that same ₹3.24 crore target. Starting early allows time to do the heavy lifting of wealth accumulation rather than relying on massive monthly contributions later.
What is the 4% withdrawal rule?
The 4% withdrawal rule states that you can safely withdraw 4% of your total retirement corpus during the first year, adjusting the amount for inflation each subsequent year, with a high probability that your money will last for at least 30 years. For example, if you build a retirement corpus of ₹2.5 crore, your first-year safe withdrawal is ₹10,00,000 (roughly ₹83,333 per month). In year two, if inflation was 6%, you withdraw ₹10,60,000. This rule assumes your retirement pool is invested in a balanced portfolio of equities and debt.
What is FIRE retirement planning?
FIRE stands for Financial Independence, Retire Early, which is a movement focused on extreme savings and frugal living. Adherents aim to save 50% to 70% of their active income, channeling it into investments to build a retirement corpus by their 30s or 40s. For example, if you can save 25 times your annual expenses by age 40, you can technically retire early and live off investment withdrawals. The plan relies on building a safe capital pool and controlling long-term living expenses.
How does inflation affect retirement planning?
Inflation reduces the purchasing power of money over time, meaning a fixed monthly pension will buy fewer goods in the future. For example, if inflation averages 6% per year, a monthly expenditure of ₹50,000 today will require ₹1,60,000 per month in 20 years to maintain the exact same lifestyle. If you fail to account for inflation, your retirement corpus will run out much faster than anticipated. Therefore, retirement planners must compute inflation-adjusted rates when projecting corpus lifespans.
What are the best retirement investments in India?
An optimal retirement portfolio in India should combine equity mutual funds for growth with fixed-income assets for safety. High-yield options include the National Pension System (NPS), which offers market returns and extra tax benefits, and the Employee Provident Fund (EPF) for salaried workers. Safe fixed-income avenues include Public Provident Fund (PPF) and Senior Citizens Savings Schemes (SCSS) yielding 7.4% to 8.2%. Maintaining a diversified asset allocation helps beat inflation while safeguarding capital.