Retirement Corpus Calculator

Plan your retirement and calculate the corpus required.

Retirement Calculator

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About Retirement Planning

Retirement planning involves calculating how much corpus you need to maintain your lifestyle after you stop working, factoring in inflation, life expectancy, and expected returns on investments.

Critical Factors:

  • Current age and planned retirement age
  • Current and expected future expenses
  • Inflation rate (especially healthcare inflation)
  • Life expectancy (typically 85-90 years)
  • Investment returns pre and post-retirement

Corpus Calculation Method

Required Corpus Formula:

Step 1: Project future expenses at retirement using inflation

Step 2: Calculate years in retirement (Life Expectancy - Retirement Age)

Step 3: Determine real rate of return (Return - Inflation)

Step 4: Apply annuity formula to find required corpus

Rule of Thumb: Multiply annual expenses by 25-30. This assumes 4% safe withdrawal rate with investments continuing to grow.

Key Insights

💰 Start Early Advantage

₹10K/month from age 25 to 60 @12% = ₹6.5 crores. Starting at 35 gives only ₹1.8 crores. 10 years delay costs you ₹4.7 crores!

📈 Healthcare Inflation

Healthcare costs grow at 10-12% vs general inflation of 6%. A ₹50K surgery today will cost ₹3.3 lakhs after 20 years. Factor this heavily!

🎯 The 80% Rule

Post-retirement, you typically need 70-80% of pre-retirement income. Work costs reduce but healthcare and leisure increase.

Did You Know?

🏥 Healthcare Reality

Average Indian spends ₹4-6 lakhs on healthcare between 60-80 years. Without insurance and corpus, this becomes a major burden. Plan for ₹10-15 lakhs healthcare buffer.

📊 Asset Allocation

At 30: 70% equity, 30% debt. At 50: 50-50. At 60: 30% equity, 70% debt/fixed income. Gradual shift reduces volatility risk near retirement.

🎯 Pension Gap

Only 15% of Indians have formal pension coverage. Don't rely on government or employer pensions - build your own corpus!

Frequently Asked Questions About Retirement Planning

A common rule is to accumulate 25-30 times your annual expenses. If you need ₹5 lakhs/year, aim for ₹1.25-1.5 crores. Use the 4% withdrawal rule: withdraw 4% of corpus annually, adjusting for inflation. This assumes investments continue earning during retirement at inflation + 2-3%.
Withdraw 4% of your retirement corpus in the first year, then adjust that amount for inflation annually. Research shows this strategy has historically allowed retirees to sustain their lifestyle for 30+ years without depleting the corpus. Example: ₹1 crore corpus allows ₹4 lakh withdrawal in year 1.
Start with current expenses, then adjust: (1) Remove work-related costs (commute, wardrobe), (2) Add healthcare (increases 3x post-60), (3) Add lifestyle/travel budget, (4) Remove child education costs (if grown), (5) Apply inflation for years till retirement. Typically, retirees need 70-80% of pre-retirement income.
Absolutely critical! At 6% inflation, prices double every 12 years. ₹30,000 monthly expenses today will be ₹1.2 lakhs in 25 years. Always factor inflation in both corpus calculation and post-retirement projections. Healthcare inflation is even higher at 10-12% annually.
Diversify across: PPF (7-7.5%, tax-free), NPS (market-linked, tax benefits), Mutual Funds (equity for growth, debt for stability), Fixed Deposits (safety), Real Estate (rental income), Senior Citizen Savings Scheme (8-9% for 60+). Young investors should be equity-heavy; reduce equity gradually as retirement approaches.
Start in your 20s! A 25-year-old saving ₹10,000/month @12% for 35 years accumulates ₹6.45 crores. Starting at 35 with same parameters gives only ₹1.83 crores. The power of compounding works best over long periods. Even starting at 40 is better than 45!
NPS Pros: Low cost (0.01% fund management), tax benefits (₹2 lakh under 80CCD), market-linked returns (10-12% historically), government backing. Cons: Lock-in till 60, mandatory annuity purchase (40% of corpus), lower liquidity. Best used alongside other investments, not as sole retirement vehicle.
Yes, but requires discipline! FIRE (Financial Independence, Retire Early) needs: (1) Higher savings rate (40-60% of income), (2) Larger corpus (30-40x annual expenses vs 25x), (3) Diversified passive income, (4) Healthcare planning, (5) Contingency buffer. Retiring at 45 instead of 60 means corpus must last 40+ years vs 25.