Retirement Calculator
Determine the retirement corpus you need to maintain your lifestyle post-retirement.
Total Corpus Needed
₹ 0
Monthly Investment Needed (SIP)
₹ 0
To reach your goal by age 60
What is a Retirement Calculator?
A Retirement Calculator is a planning tool that helps you estimate the total corpus required to maintain your current lifestyle after you stop working. It takes into account your current age, retirement age, life expectancy, monthly expenses, expected inflation, and the rate of return on your investments.
How It Works
The calculator projects your future expenses adjusted for inflation and determines the lump sum needed at retirement to fund these expenses until your life expectancy. It also calculates how much you need to save monthly to reach that goal.
Example Calculation
You are 30, plan to retire at 60, and live till 80. Current monthly expense is ₹50,000.
- 1.Years to Retire = 30
- 2.Inflation = 6%
- 3.Future Monthly Expense = ₹50,000 * (1.06)^30 ≈ ₹2.87 Lakhs
- 4.Corpus Required at 60 ≈ ₹5 Crores (approx)
- 5.Monthly SIP Required ≈ ₹15,000 (at 12% return)
Why This Tool is Useful
- ✓Gives a reality check on your savings vs requirements.
- ✓Helps you start investing early to benefit from compounding.
- ✓Adjusts for inflation, which is the biggest threat to retirement savings.
- ✓Allows you to experiment with different retirement ages.
- ✓Helps in choosing the right mix of equity and debt for your portfolio.
Tips & Comparison
- •Start Early: Starting at 25 vs 35 can reduce your required monthly investment by almost 50% due to compounding.
- •Increase SIPs: Step up your SIPs every year as your income increases (e.g., by 10%).
- •Health Cover: Ensure you have adequate health insurance separate from your retirement corpus.
- •Debt Free: Aim to be debt-free (no home/car loans) by the time you retire.