Retirement planning is probably one of the most important financial goals because you need to accumulate enough money to last 25-30 years after you stop working, without a regular salary income. The challenge is inflation - ₹1 crore today won't have the same value 30 years later. Our retirement calculator helps you figure out how much corpus you need, how much you should invest monthly, and how various investment options can help achieve this goal.
For FY 2025-26 retirement planning, consider that inflation typically runs at 6-7% per year. So if you need ₹50,000 per month today, you'll need about ₹2.5 lakh per month in 20 years just to maintain the same standard of living. That's why your retirement corpus needs to account for inflation. Most financial experts suggest your retirement corpus should be at least 25-30 times your current annual expenses. If your annual expense is ₹6 lakh today, aim for ₹2 crore corpus.
Retirement corpus needs a mix of different investments. Use PPF for guaranteed, tax-free returns on a portion. Use SIPs in equity mutual funds for potential higher returns (10-12% annually) over long term. Contribute to NPS for additional tax benefits and pension. Park emergency fund in fixed deposits for safety and liquidity. Together, these create a balanced retirement portfolio.
Many people underestimate their retirement needs because they don't factor in healthcare costs (which increase with age), inflation on household expenses, and the fact that you might live 25-30 years post-retirement. Starting early helps enormously because of the power of compounding. Starting at 25 vs starting at 35 can mean a difference of ₹1 crore in final corpus even with the same monthly investment. Use our calculator regularly to track progress and adjust your savings accordingly.
For comprehensive retirement planning guidance, check the PFRDA website at NPS Trust which explains pension options, investment strategies, and retirement corpus planning for both salaried and self-employed individuals.
Provide your current age, income, expenses, and existing savings
Specify your monthly investment capacity and expected returns
Select your target retirement age (55-70 years)
Get your personalized retirement plan with investment strategy
Pro Tip
Start investing early for retirement. The power of compounding works best over long periods. Consider increasing your investment by 10% annually to beat inflation.
Retirement planning ensures financial independence in your golden years. With increasing life expectancy and rising healthcare costs, it's crucial to build a substantial corpus that can sustain your lifestyle for 20-30 years after retirement.
Calculating retirement corpus is not about guessing a large number. It is about estimating future living expenses, inflation impact, retirement duration, and lifestyle choices. A realistic retirement plan considers monthly household expenses, medical costs, insurance premiums, travel, emergencies, and leisure spending after retirement.
Most retirees in India spend 70 to 90 percent of their pre-retirement expenses even after they stop working. While some costs like commuting reduce, healthcare expenses usually increase significantly with age. This makes it essential to plan for at least 25 to 30 years of post-retirement life.
A commonly used method is the expense multiple approach, where your annual expenses are multiplied by 25 or 30. This provides a cushion against inflation, market volatility, and unexpected financial needs during retirement.
Many individuals delay retirement planning because retirement feels far away. This delay significantly increases the monthly investment required later in life and reduces the benefit of compounding.
Avoiding these mistakes helps ensure financial independence and dignity during retirement years.
Asset allocation plays a crucial role in retirement success. A well-diversified retirement portfolio balances growth, income stability, and capital protection. The allocation should gradually shift from growth assets to stable income assets as retirement approaches.
Younger investors can afford higher exposure to equity mutual funds through SIPs for long-term growth. As retirement nears, allocation towards debt instruments, fixed income products, and pension schemes becomes more important to protect accumulated wealth.
A disciplined asset allocation strategy reduces the risk of market downturns impacting retirement income and ensures predictable cash flow after retirement.
As a rule of thumb, save 15-20% of your income for retirement. The exact amount depends on your current age, expected retirement age, lifestyle goals, and existing savings. Use our calculator to get a personalized estimate.
The 4% rule suggests withdrawing 4% of your retirement corpus in the first year, then adjusting for inflation each year. This strategy aims to make your money last for 30 years while maintaining your purchasing power.
Start as early as possible, ideally in your 20s or 30s. The power of compounding works best over long periods. Even small amounts invested early can grow significantly over 30-40 years.
Inflation erodes purchasing power over time. If inflation is 6% annually, ₹100 today will be worth only ₹54 in 10 years. Always factor in inflation when calculating your retirement corpus needs.
A balanced approach works best: 60-80% in equity for growth, 20-30% in debt for stability, and 10-15% in gold/REITs for diversification. Adjust the allocation based on your age and risk tolerance.
Yes, NPS offers additional tax benefits (₹50,000 under Section 80CCD(1B)) and professional fund management. However, it has a 60% withdrawal limit at retirement, so use it as part of a diversified portfolio.
By 30: 1x annual salary; By 40: 3x annual salary; By 50: 6x annual salary; By 60: 10x annual salary. These are general guidelines - your actual needs may vary based on lifestyle and goals.
Starting late means you'll need to save more aggressively. Consider increasing your investment amount, extending your retirement age, or adjusting your lifestyle expectations. Every year of delay makes a significant difference.
Multiply your current annual expenses by 25-30 to get a rough estimate. Then adjust for inflation based on years to retirement. Use our calculator for a detailed calculation based on your specific situation.
Retirement savings should ideally last for 25 to 30 years. With increasing life expectancy in India, planning up to age 90 provides a safer margin.
Yes. Medical expenses increase significantly with age. Health insurance, critical illness coverage, and a separate medical emergency fund are essential components of retirement planning.
Rental income can supplement retirement income, but it should not be the sole source. Vacancy risk, maintenance costs, and changing property demand must be considered.
Retirement plans should be reviewed at least once every year or after major life events such as job change, marriage, home purchase, or significant income change.