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Retirement Calculator

Calculate your retirement corpus and track progress.

Years
Your current age
Years
Target retirement age
Amount saved so far
Regular monthly investment
Portfolio growth rate
Cost inflation per year
Today's rupee value

Retirement Plan

Enter your details to plan retirement.

Understanding Retirement Planning

Retirement planning is about calculating how much money you need to save to live comfortably after you stop working. It accounts for inflation, investment returns, and your desired lifestyle. The key is starting early - compound interest becomes your best friend when you have 20+ years to save.

Start Early Advantage

Time is your biggest asset. Starting retirement saving 10 years earlier can reduce required monthly contribution by 50%+ due to compound interest working longer.

Inflation Impact

Inflation erodes purchasing power. Your ₹1L today becomes ₹50K in real value over 14 years at 5% inflation. Retirement corpus must account for this rising expense.

4% Withdrawal Rule

You can safely withdraw 4% of corpus annually. If you need ₹3L/year, save ₹75L corpus. This ensures money lasts 30+ years without running out.

Regular Progress Review

Track progress annually. Adjust contributions if needed, increase with salary, and rebalance portfolio as you approach retirement for risk reduction.

Retirement Corpus Calculation Components

Component Description Calculation
Monthly Expenses Your planned monthly spending in today's rupees Input value directly
Inflation Adjustment Rising costs over years to retirement Expenses × (1 + inflation rate)^years
Annual Needs Monthly expenses × 12 months Monthly × 12
4% Rule Safe withdrawal rate from corpus Required Corpus = Annual Needs ÷ 0.04
Corpus Growth Investment returns over accumulation period Savings × (1 + return rate)^years

Real-World Retirement Examples

Example 1: Early Planner (Age 30)

Scenario: Start early, benefit from 30 years of compounding

Details: Age 30 → 60, ₹0 current savings, ₹15K/month contribution, 10% return, 5% inflation, ₹50K monthly expenses

Required Corpus: ₹1.85 Cr (inflation-adjusted)

Expected Corpus: ₹2.10 Cr → On Track! Your ₹54L contributions become ₹2.10 Cr due to compound interest.

Example 2: Mid-Career Saver (Age 40)

Scenario: Start late, need higher contributions

Details: Age 40 → 60, ₹25L current savings, ₹30K/month contribution, 10% return, 5% inflation, ₹60K monthly expenses

Required Corpus: ₹3.12 Cr (inflation-adjusted)

Expected Corpus: ₹2.95 Cr → Close but Short! May need to increase contributions or work 2-3 more years.

Example 3: Late Starter Impact Comparison
Starting Age Years to Retirement Monthly Contribution (₹K) Retirement at 60 Status
Age 25 35 years ₹10K ₹1.50 Cr ✅ Comfortable
Age 30 30 years ₹15K ₹1.60 Cr ✅ On Track
Age 35 25 years ₹25K ₹1.55 Cr ⚠️ Tight
Key: Starting 10 years later requires 2.5x monthly contribution for similar corpus!

Time is money - starting early dramatically reduces the burden of saving for retirement.

Retirement Corpus Formula

Key Formulas:
1. Required Corpus (4% Rule):

Required Corpus = Annual Expenses × 25 (or Annual Expenses ÷ 0.04)

2. Inflation-Adjusted Annual Expenses:

Adjusted Expenses = Current Expenses × (1 + inflation rate)^years

3. Expected Corpus (Growth of Savings):

FV = Current Savings × (1 + return)^years + Monthly Contribution × [((1 + r)^n - 1) / r] × (1 + r)

Step-by-Step Example:

Problem: Age 35, want to retire at 60. ₹10L saved, ₹20K/month contribution, 10% return, 5% inflation, ₹50K monthly expenses needed. Calculate retirement corpus needed and expected corpus.

Step 1: Years to retirement = 60 - 35 = 25 years

Step 2: Calculate inflation-adjusted annual expenses

  • Current monthly = ₹50K
  • Current annual = ₹50K × 12 = ₹6L
  • Inflation-adjusted = ₹6L × (1.05)^25 = ₹20.48L per year

Step 3: Calculate required corpus using 4% rule

  • Required Corpus = ₹20.48L ÷ 0.04 = ₹5.12 Cr

Step 4: Calculate expected corpus from savings + contributions growth → Compare with required corpus to determine if on track

Frequently Asked Questions

Retirement corpus is the total amount of money you need to accumulate by retirement to support yourself for the rest of your life. It's important because: (1) Ensures financial independence after work, (2) Accounts for inflation and rising expenses, (3) Helps you live comfortably without work income, (4) Provides security and peace of mind. A typical rule is to save 25x your annual expenses for retirement using the 4% withdrawal rule.

The 4% rule is a retirement guideline: (1) You can safely withdraw 4% of your retirement corpus annually, (2) This corpus should last 30+ years without running out, (3) Example: ₹50L corpus allows ₹2L annual withdrawal (4% of ₹50L), (4) This rule assumes your corpus continues growing at 7%+ annually. So if you need ₹3L annually, you need ₹75L corpus (₹3L ÷ 0.04 = ₹75L). This calculator uses this standard rule for planning.

Inflation erodes your purchasing power over time: (1) Expenses rise every year - what costs ₹100 today costs ₹110+ in 10 years, (2) Your retirement corpus must account for this, (3) Example: ₹30L corpus at 5% inflation becomes worth only ₹18L in real terms after 20 years, (4) Retirement expenses grow annually with inflation. This calculator adjusts your required corpus for inflation so you calculate based on future rupee value, not today's value.

Monthly contributions depend on: (1) Your retirement corpus target, (2) Years until retirement, (3) Expected investment returns, (4) Current savings amount. General guidelines: (1) Save 10-15% of gross income for retirement, (2) Start early - compound interest does the heavy lifting, (3) Increase contributions with salary increases, (4) Use employer matching if available (free money!). Example: Starting at 30, needing ₹1Cr by 60 = ~₹20-25K/month at 10% returns.

Choose based on your investment mix and risk tolerance: (1) Conservative (FDs, Bonds): 5-6% returns, (2) Balanced (Mix of stocks/FDs): 8-9% returns, (3) Aggressive (Equity funds): 10-12%+ returns, (4) Historical equity returns: 12-15%+. Important: (1) Higher returns = higher volatility/risk, (2) Use realistic rates, not optimistic ones, (3) Younger investors can take more risk, (4) De-risk as you approach retirement. For 30+ year horizon, 8-10% is reasonable for balanced portfolio.

Yes! Increasing contributions significantly improves retirement readiness: (1) Salary typically increases 5-10% annually, (2) Allocate part of raises to retirement contributions, (3) This compounds into much larger corpus, (4) Example: Starting ₹5K/month, increasing 5% yearly adds ₹50L+ extra corpus. Benefits: (1) Grows with your income, (2) Maintains savings discipline, (3) Leverages compound interest on larger amounts, (4) Catches up if behind. This calculator uses fixed contributions - adjust calculations for increasing contributions.

If behind on retirement savings, options include: (1) Work longer - even 2-3 more years significantly increases corpus, (2) Save more monthly - allocate more to retirement, (3) Seek higher returns - consider more growth-oriented investments, (4) Reduce expected expenses - plan for less spending, (5) Combination approach - bit of all options. Rule: 10% extra monthly savings = ~25% larger corpus at retirement due to compounding. Working 5 more years nearly doubles corpus with compound interest.

Yes, healthcare becomes critical in retirement: (1) Medical costs rise faster than inflation (7-8% annually), (2) Insurance doesn't cover everything, (3) Long-term care can be expensive, (4) Plan for catastrophic health events. Recommendations: (1) Get health insurance that covers till 100+ years, (2) Consider separate health emergency fund (₹20-30L), (3) Factor higher healthcare inflation into planning, (4) Don't cut health corners to save for retirement. Healthcare should be part of retirement planning, not an afterthought. Include in monthly expense calculations.
Quick Tips
  • Start early - time multiplies your savings through compound interest
  • Increase contributions yearly - allocate salary hikes to retirement
  • Factor inflation - don't underestimate rising expenses
  • Review annually - adjust contributions and investments as needed
  • Diversify portfolio - balance risk as you approach retirement
  • Consider taxes - plan tax-efficient withdrawals in retirement
Disclaimer

This retirement calculator is for educational planning only. Results are estimates based on fixed returns and contributions. Actual retirement needs depend on lifestyle choices, healthcare costs, market volatility, tax implications, and life events. Past performance doesn't guarantee future results. Always consult with a qualified financial advisor for personalized retirement planning.

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