Retirement Calculator
Estimate your required retirement corpus, future expenses, and the monthly investment needed to achieve your dream retirement.
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Retirement Plan Summary
Monthly Expense at Retirement
₹ 2,87,175
Years to Retire
30 Yrs
Required Retirement Corpus
₹ 6,12,00,000
Value of Existing Savings
₹ 1,49,00,000
Retirement Gap
₹ 4,63,00,000
Additional Monthly SIP Required
₹ 13,200
Why Plan for Retirement?
Inflation quietly eats away the purchasing power of your money. What costs ₹50,000 today might cost over ₹2.8 Lakhs after 30 years at a 6% inflation rate. Retirement planning helps you build a large enough corpus to sustain your lifestyle when your active income stops.
How we Calculate
- Step 1: Calculate future expenses by inflating your current monthly expenses up to your retirement age.
- Step 2: Calculate the total corpus required to generate this inflation-adjusted income throughout your life expectancy using real return (Return - Inflation).
- Step 3: Project the future value of your current existing savings up to retirement.
- Step 4: Find the gap (Required Corpus - Future value of existing savings).
- Step 5: Calculate the monthly SIP needed to cover this gap.
The Power of Early Planning
Delaying your retirement planning by even 5 years can practically double the monthly SIP amount required. Starting early allows compounding to do the heavy lifting for your wealth creation.
Frequently Asked Questions
What is a good inflation rate to assume? expand_more
Historically, lifestyle inflation in India hovers around 6% to 7%. It is prudent to assume at least 6% to ensure your future purchasing power is accurately estimated.
Where should I invest my retirement savings? expand_more
During your pre-retirement phase (accumulation phase), equity mutual funds are ideal as they have the potential to beat inflation. Post-retirement, a mix of debt funds, balanced advantage funds, and SWPs provides stability and regular income.
Why is Post-Retirement return lower? expand_more
After you retire, capital preservation becomes more important than high growth. Most investors shift their corpus from high-risk equity to lower-risk debt/hybrid funds, which generally offer lower, but more stable returns.