Retirement Planning Calculator
Project your retirement corpus, monthly pension, and shortfall (or surplus) — adjusted for inflation and expected investment returns.
Calculate Your Retirement Plan
Typical NPS / equity MF: 8-12%
India long-term average ~6%
In today's value — calculator inflates
What Is a Retirement Corpus?
A retirement corpus is the lump sum you need at retirement to fund the rest of your life without earned income. It must cover your living expenses, healthcare, and any goals (travel, gifting) while keeping up with inflation, which usually doubles costs roughly every 12 years at 6%.
This calculator computes:
- Corpus at retirement — future value of your monthly savings at your chosen return rate.
- Monthly pension — annuity-style withdrawal that exhausts the corpus over your post-retirement life.
- Inflation-adjusted expenses — how much your target monthly expense will cost in future rupees.
- Surplus or shortfall — whether your savings rate is on track.
How the Numbers Work
Three formulas drive the projection:
Corpus = S × [((1 + i)n − 1) / i] × (1 + i)
Pension = Corpus × i / [1 − (1 + i)−m]
Inflated Expense = E × (1 + π)y
- S = monthly savings, i = monthly return rate, n = months to retirement.
- m = months in retirement, E = current monthly expense.
- π = annual inflation, y = years to retirement.
Retirement Savings Benchmarks
| Age | Savings Target | Rationale |
|---|---|---|
| 30 | 1× annual salary | Foundation built; emergency fund + early SIPs |
| 40 | 3× annual salary | Compounding starts to bite; aggressive equity allocation |
| 50 | 6× annual salary | De-risk gradually; rebalance to balanced funds |
| 60 | 10× annual salary | Ready for retirement; mix of annuity, debt, equity |
Adapted from Fidelity-style benchmarks for an Indian context.
Frequently Asked Questions
What is a retirement corpus?
The total savings accumulated by retirement to fund post-retirement expenses, accounting for inflation and investment returns.
How does inflation affect retirement planning?
Inflation increases future expenses, requiring a larger corpus to maintain your lifestyle. A 6% rate doubles costs in ~12 years.
What is NPS in retirement planning?
The National Pension System is a government-backed pension scheme with tax benefits under Sections 80C and 80CCD(1B), offering equity and debt options.
How much should I save monthly for retirement?
Depends on current age, retirement age, expenses, inflation, and return. Use this calculator with realistic assumptions and iterate.
What return rate should I assume?
For a balanced portfolio (60% equity, 40% debt), 9–11% pre-retirement and 7–8% post-retirement is a defensible long-term assumption for India.
When is the ITR filing deadline for FY 2025-26?
July 31, 2026 for non-audit cases. Late filing incurs a ₹5,000 penalty under Section 234F.