How the calculator works
- Future expenses. Your current monthly spending is grown by inflation until you retire. At 6% inflation, ₹40,000 today becomes about ₹2,29,740 a month in 30 years.
- Corpus needed. The calculator works out the lump sum that, invested at your post-retirement return, can pay those expenses — rising with inflation every year — until the age you plan for.
- Monthly SIP. It subtracts what your existing savings will grow to and calculates the monthly investment needed for the gap.
For the example (age 30, retire at 60, plan to 85, 6% inflation, 11% return before and 7% after retirement, ₹5 lakh saved):
| Amount | |
|---|---|
| Monthly expenses at 60 | ₹2,29,740 |
| Corpus needed at 60 | ₹6.17 crore |
| Existing ₹5 lakh grows to | ₹1.14 crore |
| Monthly SIP needed | ₹17,763 |
The corpus looks enormous, but it is simply today's ₹40,000 lifestyle expressed in 2056 rupees.
The three numbers that matter most
- When you start. Starting at 40 instead of 30 (same expenses, same ₹5 lakh saved) raises the SIP needed from ₹17,763 to about ₹34,837 a month.
- Inflation. Even 1% higher inflation increases the corpus sharply, because it compounds both before and during retirement. Plan with 6–7% for India.
- Real return after retirement. What matters is how much your money beats inflation. If your post-retirement return only equals inflation, your corpus must cover every rupee of future spending with no help from growth.
Planning to live to 90 instead of 85 raises the corpus to about ₹7.24 crore. It is safer to plan for a long life than to run out at 80.
Building the corpus in India
A typical retirement plan combines several products:
- EPF for salaried employees — see the EPF calculator for your likely balance at 58.
- PPF for tax-free, guaranteed growth — PPF calculator.
- NPS for extra tax benefits and a pension — NPS calculator.
- Equity mutual fund SIPs for long-term growth — SIP calculator, or a step-up SIP that rises with your salary.
- Gratuity at retirement — gratuity calculator.
Subtract what EPF and other existing savings will provide, and the SIP you actually need is often smaller than the headline figure.
After you retire
Move most of the corpus to lower-risk options a few years before retirement. Retirees commonly combine the Senior Citizen Savings Scheme (8.2%), senior citizen FDs and a systematic withdrawal plan from a hybrid fund.