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Retirement corpus calculator
How much you need at retirement and the monthly SIP to get there.
Quick answer
Enter your age, retirement age, monthly expenses and inflation. With โน50,000 of expenses today, 6% inflation, 25 years to go and 25 years of retirement, you need about โน5.19 crore.
Corpus needed at retirement
โน5,19,11,228
- Monthly SIP to reach it
- โน38,801
- Yearly expenses in the first retirement year
- โน25,75,122
- Your current savings, grown to retirement
- โน0
A planning estimate. It does not include tax, pensions, rental income or changes in lifestyle.
How it works
The calculator first grows todayโs expenses by inflation to the day you retire, then works out the pot that can pay a rising income for the rest of your life.
It then divides the gap between that pot and your current savings by the growth factor of a monthly SIP.
Small changes in inflation and post-retirement return move the answer a lot, so test a few settings.
The formula
- Expenses at retirement = todayโs yearly expenses ร (1 + inflation)^years to go
- Corpus = expenses ร (1 โ q^N) รท (1 โ q), where q = (1 + inflation) รท (1 + return after retirement) and N = years in retirement
- SIP needed = (corpus โ savings grown) รท SIP factor, using the return before retirement
A worked example
โน50,000 a month today at 6% inflation for 25 years becomes โน25,75,122 a year at 60. Funding 25 years of that with an 8% return takes a corpus of โน5,19,11,228.
Common questions
How long should I plan to live?
Many planners use 85 to 95 to be safe. Running out of money is worse than leaving some behind.
Why is the corpus so big?
Inflation makes your future expenses much larger than todayโs, and the pot must last for decades.
Should I count the EPF, NPS or a pension?
Yes: subtract what they will give from your expenses, or add their value to the savings box.
What return should I assume after retirement?
Retirees usually move to safer assets, so a lower return than before retirement is normal. Test a few values.