Retirement Calculator

Why Retirement Planning Matters (in India)

India doesn’t have a universal pension system. Life expectancy is increasing, and healthcare costs continue to rise, especially after retirement. Most Indians either rely on EPF, family, or savings, which may not be enough.

Here’s why planning early is essential:

• In India, most retirement plans rely on personal savings and self-driven planning rather than state-sponsored systems.
• Medical inflation in India is rising at 10–12% annually.
• You may not want to depend on your children or family.
• You should enter retirement with the confidence that your finances are in place.

Whether you're a salaried professional or self-employed, building a retirement corpus gives you long-term confidence and peace of mind.

What is a Retirement Calculator?

A retirement calculator helps answer one critical question:

“How much will I need to retire comfortably - and how much should I save now?”

It considers:

• Your monthly living expenses
• Inflation
• Life expectancy
• Expected returns on investment

This is not a FIRE calculator.

This retirement calculator helps you plan for traditional retirement at 58–65 with required corpus, focused on stability and long-term income.

Inputs You’ll Need

You only need a few simple inputs:

1. Current Age
2. Target Retirement Age (e.g., 60)
3. Monthly Household Expenses (₹)
4. Life Expectancy (usually 80–85)
5. Inflation Rate (usually 6-7%)
6. Saving Done Till Today (EPF, NPS, Mutual Funds, etc.)
7. Expected Rate of Return (% per annum)
8. Assumes annual increase in savings (default 10%)

How the Retirement Calculator Works

Once you enter your details, the calculator gives you two essential results:

1. Your Retirement Corpus - the total amount needed by your retirement age
2. Your Monthly Savings Requirement - how much you need to save going forward

These results consider the impact of

1. Inflation till retirement
2. Life expectancy
3. Investment growth

Retirement Timeline Graph

The graph above visually represents how your retirement savings may grow over time. It’s a year-wise estimate of how your wealth builds through:

1. Compounding returns
2. Regular investments
3. Time in the market

If the curve flattens early, it may signal under-saving. If it rises consistently, you're likely on the right path.

Example: Meet Priya

1. Age: 45
2. Target Retirement Age: 60
3. Monthly Expenses: ₹70,000
4. Life Expectancy: 85
5. Corpus So Far: ₹20 lakh (EPF + Mutual Funds)
6. Inflation: 7%
7. Expected Return: 12%

Result:

1. Required Corpus: ₹5.19 crore
2. Monthly savings required: ₹49,536

over next 15 years and increase every year by 10%

This case highlights the importance of checking your plan early - not at 58.

Common Retirement Planning Mistakes

Many people in India delay or overlook key aspects of retirement planning. Here are some of the most frequent mistakes:

1. Relying only on EPF
2. Ignoring inflation
3. Not factoring healthcare costs
4. Assuming both partners will have similar retirement timelines
5. Depending on children as a primary source of post-retirement income
6. Not adjusting your plan after income/life changes

Recognizing these early can help build a more secure and resilient retirement plan.

Retirement Tips (India)

Professionals in India often delay or overlook key aspects of retirement planning. Here are some practical tips to build a strong foundation:

1. Start early - even ₹5,000/month matters if started at 30
2. Contribute fully to NPS - for tax savings + long-term corpus
3. Don’t touch retirement savings for other goals
4. Get health insurance before retirement - premiums rise sharply post-60
5. Keep 3–5 years’ worth of expenses in debt or hybrid funds during retirement
6. Review your plan annually - adjust as needed

Consistent action on these points can improve financial clarity in your retirement years.