Your Retirement Details

Current Age 30 years
years
20 30 40 50 60
Your current age (20 to 70 years)
Retirement Age 60 years
years
40 50 60 70 75
Age at which you plan to retire (40 to 75 years)
Current Monthly Expenses ₹50,000
₹10k ₹1.25L ₹2.5L ₹3.75L ₹5L
Your current monthly living expenses (₹10,000 to ₹5,00,000)
Expected Inflation Rate 6%
%
3% 5% 7% 9% 12%
Annual inflation rate assumption (3% to 12%)
Retirement Lifestyle Comfortable (80%)
Select your desired retirement lifestyle relative to current expenses
Life Expectancy 85 years
years
75 80 85 90 100
Expected lifespan for retirement planning (75 to 100 years)
Current Retirement Savings ₹5,00,000
₹0 ₹25L ₹50L ₹75L ₹1Cr
Total retirement savings accumulated so far (₹0 to ₹1 crore)
Expected Investment Return 10%
%
5% 10% 15% 20%
Expected annual return on investments (5% to 20%)
Monthly Contribution ₹20,000
₹0 ₹50k ₹1L ₹1.5L ₹2L
Monthly amount you can invest towards retirement (₹0 to ₹2,00,000)
Retirement Corpus Needed
₹3.2 Crores
Total amount needed at retirement
Current Savings Value ₹50.2 Lakhs
Monthly Contributions Value ₹1.8 Crores
Total Corpus ₹2.3 Crores
₹90.4 Lakhs
Retirement Gap
28% Shortfall

Monthly Income at Retirement

Required Monthly Income
₹2,01,265
To maintain lifestyle
Corpus Monthly Income
₹1,45,320
From retirement corpus
Monthly Shortfall
₹55,945
Additional needed

Recommended Strategy

To bridge the retirement gap, consider increasing your monthly contribution by ₹8,500 or delay retirement by 2 years.

Retirement Timeline

2025
Start Planning
₹5 Lakhs
2039
Mid Career
₹75 Lakhs
2054
Retirement
₹2.3 Crores

Investment Recommendations

Equity Investments

70%

High growth potential for long-term horizon

  • Index Funds
  • Large Cap Stocks
  • Sectoral Funds

Debt Investments

20%

Stability and regular income

  • Corporate Bonds
  • Government Securities
  • Debt Mutual Funds

Other Assets

10%

Diversification and inflation hedge

  • Real Estate
  • Gold
  • International Funds

Retirement Planning Guide

1

Calculate Your Needs

Determine your retirement corpus based on current expenses, inflation, and desired lifestyle.

  • Consider 80% of current expenses for comfortable retirement
  • Account for 6-7% annual inflation
  • Plan for 20-25 years of retirement
2

Assess Current Savings

Evaluate your existing retirement savings and investments.

  • EPF/PPF contributions
  • NPS investments
  • Mutual funds and stocks
  • Real estate assets
3

Create Investment Strategy

Develop a diversified portfolio based on your risk profile and time horizon.

  • Higher equity exposure for younger investors
  • Gradual shift to debt as retirement approaches
  • Regular rebalancing of portfolio
4

Monitor and Adjust

Regularly review and adjust your retirement plan.

  • Annual review of progress
  • Adjust contributions based on life changes
  • Update assumptions as needed

About Retirement Calculator

The Retirement Calculator helps you estimate how much money you need to save for retirement based on your current age, expenses, lifestyle preferences, and investment returns. It considers inflation, life expectancy, and existing savings to provide a comprehensive retirement plan.

How Retirement Calculations Work

Future Value Calculation

Formula: Future Value = Present Value × (1 + Rate)^Years

Calculates the future value of current savings and regular contributions

Inflation Adjustment

Formula: Future Expenses = Current Expenses × (1 + Inflation)^Years

Adjusts current expenses for inflation until retirement

Corpus Requirement

Formula: Corpus = Annual Expenses × Retirement Years

Calculates total corpus needed based on post-retirement expenses

Key Retirement Planning Factors

Time Horizon

  • Early Start (20s-30s): Benefit from compounding, lower monthly contributions needed
  • Mid Career (40s): Higher contributions required, moderate risk
  • Near Retirement (50s): Focus on capital preservation, lower risk

Investment Returns

  • Conservative: 6-8% annual returns (debt-heavy portfolio)
  • Moderate: 9-11% annual returns (balanced portfolio)
  • Aggressive: 12-15% annual returns (equity-heavy portfolio)

Lifestyle Considerations

  • Basic Lifestyle: 60% of current expenses
  • Comfortable: 80% of current expenses
  • Maintain Current: 100% of current expenses
  • Luxury: 120%+ of current expenses

Retirement Corpus Examples

Current Age Monthly Expense Retirement Age Required Corpus Monthly Saving*
30 years ₹50,000 60 years ₹3.2 Crores ₹20,000
40 years ₹75,000 60 years ₹4.8 Crores ₹50,000
50 years ₹1,00,000 60 years ₹6.4 Crores ₹1,20,000
35 years ₹60,000 55 years ₹3.8 Crores ₹35,000

*Assuming 10% returns, 6% inflation, comfortable lifestyle (80% expenses)

Retirement Investment Vehicles

EPF/PPF

  • Returns: 7-8%
  • Risk: Low
  • Tax: EEE (Exempt)
  • Best For: Conservative investors

Mutual Funds

  • Returns: 10-15%
  • Risk: Medium to High
  • Tax: LTCG applicable
  • Best For: Growth seeking investors

NPS

  • Returns: 9-12%
  • Risk: Medium
  • Tax: Additional deduction u/s 80CCD(1B)
  • Best For: Tax saving + retirement

Real Estate

  • Returns: 7-10% + rental income
  • Risk: Medium
  • Tax: Capital gains applicable
  • Best For: Diversification

Common Retirement Planning Mistakes

  • Starting Too Late: Delay reduces compounding benefits significantly
  • Underestimating Inflation: Failing to account for rising costs
  • Overestimating Returns: Assuming unrealistic investment returns
  • Ignoring Healthcare Costs: Medical expenses increase with age
  • No Emergency Fund: Not having contingency savings
  • Early Withdrawals: Dipping into retirement savings prematurely
  • No Regular Review: Failing to adjust plan as circumstances change
Note: This calculator provides estimates based on the inputs provided. Actual retirement needs may vary based on individual circumstances, market conditions, and unforeseen expenses. It's recommended to consult with a financial advisor for personalized retirement planning. Returns are not guaranteed and investments are subject to market risks.

How much retirement corpus do I need?

Your retirement corpus depends on current expenses, desired lifestyle, inflation, and life expectancy. A general rule is 25-30 times your annual expenses at retirement age.

What is the best age to start retirement planning?

The earlier, the better. Starting in your 20s or 30s allows maximum benefit from compounding. However, it's never too late to start retirement planning.

How does inflation affect retirement planning?

Inflation reduces purchasing power over time. A ₹50,000 monthly expense today would be approximately ₹2,01,265 in 30 years at 6% inflation, significantly increasing the required retirement corpus.

Should I consider pension/social security in retirement planning?

Yes, include any expected pension or social security income as it reduces the corpus you need to accumulate. However, be conservative in estimates as pension rules may change.

What if I have a retirement gap?

If there's a gap between required and projected corpus, consider: 1) Increasing monthly contributions, 2) Delaying retirement age, 3) Reducing retirement expenses, 4) Seeking higher investment returns (with appropriate risk).