Retirement Corpus & Goal Planner
Determine the exact nest-egg corpus needed to sustain your desired lifestyle after retirement, considering inflation and life expectancy.
Personal & Financial Profile
Corpus & Savings Target Breakdown
How to Calculate Your Retirement Corpus in India
Retirement planning involves estimating your post-retirement monthly living expenses and accounting for inflation over several decades. In India, with healthcare and lifestyle inflation averaging between 6% to 8%, a monthly expenditure of ₹50,000 today will expand to over ₹2.87 Lakhs per month in 30 years.
The 4% Rule & Real Rate of Return
During retirement, your investment returns must beat inflation so your capital is not depleted:
A conservative real return of 1.5% to 2.0% post-retirement ensures steady pension payouts across a 25 to 30-year retired life.
Tax-Efficient Retirement Instruments
- National Pension System (NPS): Additional ₹50,000 deduction under 80CCD(1B) + 60% tax-free lump-sum withdrawal.
- Public Provident Fund (PPF): EEE status (exempt contribution, exempt interest, exempt maturity).
- Mutual Fund Equity SIPs: LTCG taxed at 12.5% above ₹1.25L annually under Budget 2024.
Frequently Asked Questions (FAQs)
How much retirement corpus is enough in India?
A good benchmark is 25x to 30x of your annual expenses at the time of retirement. For example, if your annual expenses at age 60 are ₹30 Lakhs, a corpus of ₹7.5 to ₹9 Crore ensures lifetime financial peace.
Should I invest in pure equity before retirement?
During your accumulation years (age 25-45), an equity allocation of 70%-80% accelerates compounding. As you near retirement (age 55+), transition gradually to debt, fixed deposits, and hybrid funds to preserve capital.
How does existing savings reduce required SIP?
Your existing savings also compound over your remaining working years. For example, ₹5 Lakhs growing at 12% for 30 years will become ₹1.5 Crore on its own, significantly reducing your monthly SIP burden.