Retirement Calculator – Know Your Number, Build Your Plan
The most important financial question you will ever face is: how much do you need to retire? Without a specific number, retirement planning is vague and underfunded. With a precise target, you can calculate exactly how much to invest every month to reach it.
This retirement calculator takes your current age, desired retirement age, current monthly expenses, expected inflation rate and expected investment return – and calculates the exact corpus you need and the monthly SIP required to build it.
Understanding Retirement Corpus
Your retirement corpus needs to fund 25-30+ years of expenses. With inflation, your monthly expenses at retirement will be significantly higher than today. A 35-year-old spending ₹60,000/month today will need approximately ₹2.04 lakh/month at retirement age 60 (at 5% inflation). Funding this for 25 years requires a corpus of approximately ₹2.5-3 crore.
Retirement Planning Insights
Starting Age Makes a Huge Difference
Starting retirement SIP at 25 vs 35 requires less than half the monthly investment for the same corpus. The 10-year head start gives compounding an extra decade.
Equity is Essential for Long-Term Retirement Planning
For a retirement goal 20+ years away, equity mutual funds are the most appropriate primary vehicle. FDs and debt funds cannot generate inflation-beating returns over long periods.
Frequently Asked Questions
How much do I need to retire in Ahmedabad?
For a family spending ₹80,000/month today, planning to retire in 25 years: inflated monthly expense at retirement (6% inflation) approximately ₹3.44 lakh/month. Corpus needed for 25 years at 8% post-retirement return: approximately ₹3.5-4 crore. Our calculator gives you a personalised number.
Should I use NPS or SIP for retirement?
Both have roles. NPS offers additional tax deduction (₹50,000 under 80CCD(1B)) and a structured retirement approach. Equity SIP offers full flexibility and historically better returns. We recommend a combination – NPS for tax benefits and equity SIPs for the majority of corpus building.
What is a safe withdrawal rate in retirement?
A 4% annual withdrawal rate is commonly cited as sustainable over 25-30 years assuming a balanced portfolio. This means ₹2 crore corpus can support ₹8 lakh per year (₹67,000/month).