Home / Finance / Retirement Calculator

Retirement Calculator

Plan your retirement corpus and monthly income needs

Required Corpus
₹3,45,67,890
Monthly SIP Needed ₹25,430
Monthly Income (Post-Retirement) ₹1,73,000

What is Retirement Planning?

Retirement planning is the process of determining retirement income goals and the actions necessary to achieve those goals. It involves identifying sources of income, estimating expenses, implementing a savings program, and managing assets and risk.

In India, where traditional joint family systems are evolving and life expectancy is increasing, retirement planning has become crucial. With rising healthcare costs and inflation, having a substantial retirement corpus is essential for financial independence in your golden years.

How to Use the Retirement Calculator

  1. Enter Current Age: Your age today (18-60 years)
  2. Set Retirement Age: When you plan to retire (typically 58-65 years)
  3. Input Monthly Expenses: Your current monthly living expenses
  4. Set Inflation Rate: Expected inflation (typically 5-7% in India)
  5. Expected Return Rate: Anticipated investment returns (8-12% for balanced portfolio)
  6. Life Expectancy: How long you expect to live (80-90 years)

The 4% Withdrawal Rule

The 4% rule suggests withdrawing 4% of your retirement corpus annually, adjusted for inflation. This rate, based on historical market data, should sustain your corpus for 30+ years. For example, a ₹3 crore corpus allows ₹12 lakh annual withdrawal (₹1 lakh monthly).

Retirement Corpus Calculation

Your required corpus depends on:

Retirement Corpus Formula

Future Expenses = Current Expenses × (1 + Inflation)^Years
Required Corpus = (Annual Expenses × Years in Retirement) / Withdrawal Rate
Monthly SIP =

Where: r = expected return rate, n = months until retirement

Retirement Investment Options in India

1. Employee Provident Fund (EPF)

Mandatory for salaried employees, offering 8.15% interest (2025) with tax benefits. Both employee and employer contribute 12% of basic salary.

2. Public Provident Fund (PPF)

15-year lock-in with 7.1% interest (2025), offering triple tax benefits. Maximum investment: ₹1.5 lakh per year.

3. National Pension System (NPS)

Market-linked retirement scheme with additional ₹50,000 tax deduction under Section 80CCD(1B). Partial withdrawal allowed at 60.

4. Mutual Fund SIP

Systematic Investment Plans in equity/debt funds for wealth creation. Historical equity returns: 12-15% over long term.

5. Senior Citizen Savings Scheme (SCSS)

Post-retirement investment offering 8.2% interest (2025) with quarterly payouts. Maximum investment: ₹30 lakh.

Inflation's Impact on Retirement

At 6% inflation:

Always factor inflation into retirement planning to maintain purchasing power.

Healthcare Costs in Retirement

Medical expenses typically increase with age. Allocate 20-30% of your retirement corpus for healthcare. Consider comprehensive health insurance and critical illness cover to protect your corpus.

Related Calculators

Disclaimer: This calculator provides estimates for informational purposes only. Actual results may vary based on your specific circumstances, lender terms, and market conditions. Always consult with a qualified financial advisor before making investment or borrowing decisions. QuickCalculators is not responsible for any financial decisions made based on these calculations.

📚 Recommended Financial Resources

Enhance your financial knowledge with these top-rated finance books and resources:

Browse Finance Books on Amazon →

Disclosure: As an Amazon Associate, we earn from qualifying purchases made through this link at no additional cost to you.

Frequently Asked Questions

How much corpus do I need for retirement?
A general rule is to have 25-30 times your annual expenses as retirement corpus. This ensures you can withdraw 4% annually and sustain your lifestyle for 25-30 years.
What is the 4% withdrawal rule?
The 4% rule suggests withdrawing 4% of your retirement corpus annually. This rate, adjusted for inflation, should sustain your corpus for 30+ years based on historical market returns.
Should I include inflation in retirement planning?
Yes, inflation is critical. At 6% inflation, ₹50,000 today will need ₹2,87,000 in 30 years to maintain the same purchasing power. Always factor inflation into retirement planning.
What are the best retirement investment options in India?
Popular options include PPF, NPS, EPF, mutual funds (equity and debt), and senior citizen savings schemes. Diversify across these based on your risk appetite and time horizon.
When should I start retirement planning?
Start as early as possible. Starting at 25 vs 35 can reduce your required monthly SIP by 50% due to the power of compounding over a longer period.