Find out how much corpus you need at retirement and how much to invest monthly - accounting for inflation and post-retirement income.
Need 25× your annual expenses at retirement. At 4% withdrawal rate, corpus lasts 30+ years. Adjust for Indian inflation (~6%) by targeting 30×.
Pre-retirement: 70% equity, 30% debt. Post-retirement: shift to 30% equity, 70% debt/FD. Rebalance annually. Keep 2-year expenses in liquid assets.
Medical inflation (~10%) outpaces general inflation. Build a separate health emergency fund of ₹20–50L. Premium senior citizen health insurance by age 60.
Starting at 25 vs 35 can double your corpus for the same monthly SIP. Every 10-year delay roughly requires 3× more monthly investment.
Retirement planning is one of the most important and least addressed aspects of personal finance in India. A 2022 survey by the Max Life Insurance India Retirement Index found that only 29% of working Indians actively save for retirement. With life expectancy increasing - the average Indian today lives to about 70 years, up from 60 in 1990 - and inflation eroding purchasing power, building an adequate retirement corpus requires early, consistent planning. This calculator helps estimate the corpus needed and the monthly SIP required to reach it.
The retirement corpus is the total savings you need at retirement to sustain your desired lifestyle throughout your post-retirement years. Inflation is the most critical variable - India's consumer price inflation has historically averaged around 6-7% annually. A monthly expense of Rs 50,000 today will require approximately Rs 1.6 lakh per month in 20 years at 6% inflation. The corpus must also generate returns post-retirement, typically assumed at 6-7% from conservative instruments like Senior Citizen Savings Scheme (SCSS), RBI Floating Rate Bonds, or debt mutual funds.
Key retirement savings instruments in India include NPS (National Pension System, launched 2004), PPF, EPF, SCSS, and equity mutual funds for long-term wealth creation. The NPS offers additional tax benefits under Section 80CCD(1B) up to Rs 50,000. SEBI-registered financial planners recommend starting retirement SIPs no later than age 30 to benefit from compounding. This tool factors in current age, retirement age, monthly expenses, inflation rate, and expected returns to provide a personalised retirement roadmap.