Plan your retirement and calculate the corpus you need
Years to retirement: 30
Years in retirement: 20
₹0
₹0
Save this amount monthly via SIP
Current monthly expenses
₹50,000
Monthly expenses at retirement
₹0
After 6% inflation for 30 years
Today
Retirement
Planning till
30
Years to save
20
Years in retirement
| Age | Year | Opening Balance | Annual Contribution | Investment Returns | Closing Balance |
|---|---|---|---|---|---|
| 31 years | Year 1 | ₹5,00,000 | ₹0 | ₹60,000 | ₹5,60,000 |
| 32 years | Year 2 | ₹5,60,000 | ₹0 | ₹67,200 | ₹6,27,200 |
| 33 years | Year 3 | ₹6,27,200 | ₹0 | ₹75,264 | ₹7,02,464 |
| 34 years | Year 4 | ₹7,02,464 | ₹0 | ₹84,296 | ₹7,86,760 |
| 35 years | Year 5 | ₹7,86,760 | ₹0 | ₹94,411 | ₹8,81,171 |
| 36 years | Year 6 | ₹8,81,171 | ₹0 | ₹1,05,741 | ₹9,86,911 |
| 37 years | Year 7 | ₹9,86,911 | ₹0 | ₹1,18,429 | ₹11,05,341 |
| 38 years | Year 8 | ₹11,05,341 | ₹0 | ₹1,32,641 | ₹12,37,982 |
| 39 years | Year 9 | ₹12,37,982 | ₹0 | ₹1,48,558 | ₹13,86,539 |
| 40 years | Year 10 | ₹13,86,539 | ₹0 | ₹1,66,385 | ₹15,52,924 |
| 41 years | Year 11 | ₹15,52,924 | ₹0 | ₹1,86,351 | ₹17,39,275 |
| 42 years | Year 12 | ₹17,39,275 | ₹0 | ₹2,08,713 | ₹19,47,988 |
| 43 years | Year 13 | ₹19,47,988 | ₹0 | ₹2,33,759 | ₹21,81,747 |
| 44 years | Year 14 | ₹21,81,747 | ₹0 | ₹2,61,810 | ₹24,43,556 |
| 45 years | Year 15 | ₹24,43,556 | ₹0 | ₹2,93,227 | ₹27,36,783 |
| 46 years | Year 16 | ₹27,36,783 | ₹0 | ₹3,28,414 | ₹30,65,197 |
| 47 years | Year 17 | ₹30,65,197 | ₹0 | ₹3,67,824 | ₹34,33,020 |
| 48 years | Year 18 | ₹34,33,020 | ₹0 | ₹4,11,962 | ₹38,44,983 |
| 49 years | Year 19 | ₹38,44,983 | ₹0 | ₹4,61,398 | ₹43,06,381 |
| 50 years | Year 20 | ₹43,06,381 | ₹0 | ₹5,16,766 | ₹48,23,147 |
| 51 years | Year 21 | ₹48,23,147 | ₹0 | ₹5,78,778 | ₹54,01,924 |
| 52 years | Year 22 | ₹54,01,924 | ₹0 | ₹6,48,231 | ₹60,50,155 |
| 53 years | Year 23 | ₹60,50,155 | ₹0 | ₹7,26,019 | ₹67,76,174 |
| 54 years | Year 24 | ₹67,76,174 | ₹0 | ₹8,13,141 | ₹75,89,314 |
| 55 years | Year 25 | ₹75,89,314 | ₹0 | ₹9,10,718 | ₹85,00,032 |
| 56 years | Year 26 | ₹85,00,032 | ₹0 | ₹10,20,004 | ₹95,20,036 |
| 57 years | Year 27 | ₹95,20,036 | ₹0 | ₹11,42,404 | ₹1.07 Cr |
| 58 years | Year 28 | ₹1.07 Cr | ₹0 | ₹12,79,493 | ₹1.19 Cr |
| 59 years | Year 29 | ₹1.19 Cr | ₹0 | ₹14,33,032 | ₹1.34 Cr |
| 60 years | Year 30 | ₹1.34 Cr | ₹0 | ₹16,04,996 | ₹1.50 Cr |
* Assuming consistent monthly SIP of ₹0 and 12% annual returns
See how your current expenses will grow over time due to 6% annual inflation
| Years from Now | Your Age | Monthly Expenses | Annual Expenses |
|---|---|---|---|
| 5 years | 35 years | ₹66,911 | ₹8,02,935 |
| 10 years | 40 years | ₹89,542 | ₹10,74,509 |
| 15 years | 45 years | ₹1,19,828 | ₹14,37,935 |
| 20 years | 50 years | ₹1,60,357 | ₹19,24,281 |
| 25 years | 55 years | ₹2,14,594 | ₹25,75,122 |
| 30 years | 60 years | ₹2,87,175 | ₹34,46,095 |
Key Insight: At 6% inflation, your expenses double approximately every 12 years. Plan for much higher expenses in retirement than today.
| Strategy | Asset Allocation | Expected Return | Required Monthly SIP | Retirement Corpus |
|---|---|---|---|---|
Conservative Low risk, stable returns | Equity 30%Debt 70% | 9% | ₹24,641 | ₹5.21 Cr |
Moderate Balanced risk-return | Equity 50%Debt 50% | 11% | ₹11,501 | ₹4.40 Cr |
Aggressive High risk, high returns | Equity 70%Debt 30% | 13% | ₹4,095 | ₹3.77 Cr |
* Higher equity allocation offers better returns but comes with higher risk. Choose based on your risk tolerance and time horizon.
| Age Range | Equity | Debt | Gold | Strategy |
|---|---|---|---|---|
| 20-30 | 80% | 15% | 5% | Aggressive growth phase |
| 30-40You are here | 70% | 20% | 10% | High growth with stability |
| 40-50 | 60% | 30% | 10% | Balanced approach |
| 50-60 | 40% | 50% | 10% | Conservative, capital preservation |
| 60+ | 20% | 70% | 10% | Income generation focus |
Rule of Thumb: Equity allocation = 100 - Your Age. As you age, gradually shift from growth-focused equity to stable debt instruments for capital preservation.
| Savings Rate | Monthly Savings | Total Investment | Retirement Corpus |
|---|---|---|---|
| 10% of income | ₹10,000 | ₹41,00,000 | ₹5.03 Cr |
| 15% of income | ₹15,000 | ₹59,00,000 | ₹6.79 Cr |
| 20% of income | ₹20,000 | ₹77,00,000 | ₹8.56 Cr |
| 25% of income | ₹25,000 | ₹95,00,000 | ₹10.32 Cr |
| 30% of income | ₹30,000 | ₹1.13 Cr | ₹12.09 Cr |
Financial Independence Tip: Experts recommend saving 20-30% of income for retirement. Higher savings rate means earlier retirement or more comfortable retired life.
Retirement planning is the process of determining retirement income goals and the actions necessary to achieve those goals. It includes identifying sources of income, estimating expenses, implementing a savings program, and managing assets and risk.
With increasing life expectancy, you could spend 20-30 years in retirement. Without proper planning, you risk outliving your savings or compromising your lifestyle significantly.
A popular retirement planning guideline suggests you can safely withdraw 4% of your retirement corpus annually, adjusted for inflation, with minimal risk of running out of money over 30 years.
Example:
• Monthly SIP: ₹10,000
• Investment period: 35 years
• Total invested: ₹42 lakhs
• At 12% returns:
₹6.44 Crores
• Monthly SIP: ₹10,000
• Investment period: 25 years
• Total invested: ₹30 lakhs
• At 12% returns:
₹1.88 Crores
Power of Compounding: Starting 10 years earlier with same monthly investment results in 3.4x larger corpus! The earlier you start, the less you need to save monthly to reach your goal.
Don't rely on a single income source in retirement. Build a diversified portfolio of income streams for financial security.
EPF (Employee Provident Fund)
Mandatory for salaried. 8.15% interest. Tax-free maturity
PPF (Public Provident Fund)
15-year lock-in. 7.1% interest. Completely tax-free
NPS (National Pension System)
Additional ₹50K tax deduction. Market-linked returns
Equity Mutual Funds
10-12% long-term returns. Systematic withdrawal plans
Debt Mutual Funds
7-9% returns. Lower risk. Tax-efficient after 3 years
Dividend Stocks
Regular dividend income + capital appreciation
Senior Citizen Savings Scheme
8% interest. ₹30L limit. 5-year tenure
Post Office Monthly Income Scheme
7.4% annual return paid monthly. Government backed
Bank Fixed Deposits
6-7% interest. Safe but taxable. DICGC insured
Rental Property
Regular rental income + property appreciation
REITs (Real Estate Investment Trusts)
Property exposure without management hassles
Gold
Hedge against inflation. 5-10% portfolio allocation
Medical expenses grow at 10-12% annually - double the general inflation rate. A medical emergency can wipe out years of savings if not planned for.
12%
Medical inflation rate
₹15-20L
Average health insurance needed
20-25%
Of retirement corpus for healthcare
Delaying retirement planning means missing out on compounding magic. Starting at 25 vs 35 can result in 2-3x larger corpus. Even if late, start now - better late than never.
Planning only till 70-75 is risky. With improving healthcare, plan for at least 85-90 years. Running out of money in old age is a real risk.
₹50,000 monthly today won't have same purchasing power after 30 years. At 6% inflation, you'll need ₹2.8 lakhs to maintain same lifestyle. Always plan with inflation.
FD returns barely beat inflation. You need equity exposure for growth. Balanced portfolio crucial - 100% debt in retirement is equally risky as 100% equity.
Medical emergency can destroy retirement corpus. Health insurance premium at 45 costs less than at 55. Buy adequate coverage early and renew lifetime.
EMIs in retirement eat into limited income. Clear all loans before retirement - especially personal loans and credit cards. Home loan if manageable can continue.
Children have their own financial challenges. Don't burden them. Financial independence in retirement gives you dignity and freedom. Plan to be self-sufficient.
Breaking PPF, withdrawing EPF before retirement for house/car destroys retirement planning. These are meant for retirement. Keep them sacred.
Define your retirement lifestyle. Want to travel? Start business? Volunteer? Estimate expenses accordingly. Specific goals lead to better planning.
50% needs, 30% wants, 20% savings. In 30s-40s, increase savings to 25-30%. Higher early savings gives cushion for later years.
If equity grows, sell and move to debt. If debt portion increases, add to equity. Maintain target allocation through regular rebalancing.
Rent is a permanent monthly expense. Owning home eliminates major expense. Clear home loan by 50-55 to enter retirement debt-free.
Transition gradually. Work part-time, consulting, or freelancing. Keeps you active, extends retirement corpus, delays full withdrawal.
Understand your investments. Don't depend entirely on advisors. Read books, take courses. Informed decisions lead to better outcomes.
Expenses don't stop growing after retirement. Keep some equity exposure even post-retirement for inflation protection. 30-40% equity till 70.
Coordinate with spouse. Max out individual limits (PPF, NPS, 80C). Two PPF accounts = ₹3L annual savings with full tax benefit.
Start retirement planning as early as possible. Compounding works magic over long periods. Even small monthly savings grow significantly.
Inflation is your biggest enemy in retirement. At 6% inflation, your expenses double every 12 years. Plan accordingly.
Don't put 100% in any single asset class. Balance equity, debt, and gold based on age and risk tolerance.
EPF + PPF alone may not be sufficient. Supplement with NPS, mutual funds, and other investments for adequate corpus.
Health insurance becomes expensive and difficult to get post-55. Buy comprehensive coverage before 50.
Emergency fund of 12-24 months expenses is must before retirement. Keep it liquid in savings/FD.
Clear all high-interest debt before retirement. Home loan can continue if EMI is manageable from retirement income.
Review retirement plan annually. Adjust for salary changes, expense changes, and market conditions.
Don't rely solely on children for retirement. They have their own financial goals and challenges to handle.
Consider downsizing home in retirement. Releases locked capital, reduces maintenance, property tax burden.
Disclaimer: This calculator provides estimated retirement corpus requirements for educational and planning purposes only. Actual retirement needs may vary significantly based on lifestyle, health conditions, family situation, and unforeseen circumstances. Investment returns are not guaranteed and past performance doesn't predict future results. Inflation rates, life expectancy, and expenses are estimates and can differ from actual experience. This tool should not be considered as financial advice. Please consult a certified financial planner for personalized retirement planning considering your unique situation, risk tolerance, and financial goals.