Retirement Planning Calculator

The required retirement corpus depends on your current monthly living expenses, retirement age, expected lifespan, and inflation. In India, because inflation averages 6% and healthcare costs escalate rapidly, a person spending ₹50,000/month at age 30 typically requires a retirement corpus of ₹4.5 Crore to ₹6.5 Crore by age 60.

The calculation uses a dual-phase model: Phase 1 projects today’s monthly expenses to retirement age using compounding inflation. Phase 2 computes the present value of an inflation-indexed annuity across the retirement years using the real rate of return (Post-Retirement Return minus Inflation Rate).

The 4% rule (from the Trinity Study) suggests you can safely withdraw 4% of your portfolio in year one of retirement and adjust for inflation thereafter without running out of money over 30 years. However, in India, where inflation is higher (6% vs 2-3% in the US), a safer initial withdrawal rate is typically 3.0% to 3.5%.

Post-retirement portfolios should not be 100% in fixed deposits, because inflation and tax will erode the principal. Financial planners recommend a bucket strategy: 2–3 years of expenses in Liquid/Short-term Debt, 40–50% in Conservative/Balanced Hybrid Funds, and 20–30% in Equities to provide inflation-beating capital growth.

Your existing provident fund (EPF), PPF, NPS, or mutual fund balances will compound until your retirement age. This reduces the net additional corpus you need to build, lowering your required monthly fresh savings.