Finance
Plan your retirement by calculating the corpus you'll need and the monthly investment required to reach your goal.
Corpus Needed
₹8,61,52,368
This is a simplified calculation. It assumes a constant inflation rate, constant investment returns, and equal annual expenses throughout retirement. Consult a financial advisor for a personalized retirement plan.
A retirement calculator is a financial planning tool that projects your retirement income needs and compares them against your savings and expected investment returns. It answers the fundamental question: will your money last as long as you do? By inputting your current age, retirement age, savings, annual spending, and expected investment returns, the calculator models your financial situation across decades and reveals any shortfall or surplus.
The calculator takes your current savings and applies an annual investment return rate (typically 7-9% for a balanced portfolio). Each year, it subtracts your planned annual spending (adjusted upward for inflation, usually 5-7% per year) from your growing nest egg. It continues this simulation from your retirement date until a chosen end age (typically 90-100). If your balance never reaches zero, you're covered; if it does, you've identified a gap that requires more saving, later retirement, or reduced spending.
Future Balance = (Previous Year Balance × (1 + Return Rate)) − (Annual Spending × (1 + Inflation Rate)^Years Elapsed)The formula compounds your investment returns annually, then subtracts inflation-adjusted spending each year. Return Rate is your expected annual investment gain (e.g., 8%), Inflation Rate is the annual rise in living costs (e.g., 5%), and Years Elapsed counts up from age at retirement.
| Input | Result | Notes |
|---|---|---|
| Age 35, retire at 65, current savings ₹50 lakhs, annual spending ₹30 lakhs, 8% return, 5% inflation, plan to age 90 | Balance at age 90 ≈ ₹2.8 crore (surplus) | 30 years of compounding at 8% return, offset by inflation-adjusted withdrawals, leaves a comfortable cushion. |
| Age 40, retire at 60, current savings ₹20 lakhs, annual spending ₹40 lakhs, 7% return, 5% inflation, plan to age 85 | Balance at age 75 ≈ 0 (shortfall by age 85) | Early retirement with high spending drains savings before life expectancy; needs either more saving, later retirement, or reduced spending. |
| Age 50, retire at 70, current savings ₹1 crore, annual spending ₹25 lakhs, 9% return, 4% inflation, plan to age 95 | Balance at age 95 ≈ ₹4.2 crore (substantial surplus) | Higher returns, lower inflation, and longer working years create a strong safety margin. |
It means your savings will run out before your target end age. You have three levers: save more now, work longer, or plan to spend less in retirement. Even a one-year delay can add ₹10–20 lakhs in compounding and reduce withdrawal years.
Not unless you plan to sell it or take a reverse mortgage. Treat it separately; focus the calculator on liquid investments and accounts you'll actually draw from.
Use 7-8% for a balanced portfolio (60% stocks, 40% bonds). Use 6% if you're conservative; use 9% only if you're 100% stocks. Historically, India's stock market has returned 12%+, but bonds pull the average down.
Add the annual pension or benefit amount to your calculator's 'additional income' field, if available. It reduces the amount you need to withdraw from savings each year.
5% is a reasonable long-term average. If inflation is currently 6-7%, use that for the next 2-3 years, then drop to 5%. The calculator's accuracy is most sensitive to return and inflation rates, so err on the side of conservatism.
Yes. Test retiring at 55, 60, and 65 separately. Early retirement works if you've saved aggressively and your withdrawal rate (annual spending ÷ total savings) is below 3-4%, a safe threshold in most markets.