Retirement Calculator

A Retirement Calculator is a comprehensive financial planning tool that helps you estimate how much money you need to save to maintain your desired lifestyle after retirement. It considers your current age, retirement age, life expectancy, monthly expenses, inflation, and expected investment returns.

Why it matters: Retirement planning is crucial as you will no longer have regular income from employment. The calculator helps you understand the corpus required to sustain your lifestyle for potentially 20 to 30 years post-retirement, accounting for inflation that erodes purchasing power over time.

The Retirement Readiness Score, or R2S, is a proprietary scoring system built into RuDo's Retirement Calculator. It goes beyond just the numbers and evaluates your overall retirement preparedness across five dimensions, giving you a single score out of 100.

The Five Dimensions:

1. Corpus Progress (out of 20): How far along you are toward building your target retirement corpus based on your age and career stage.

2. Monthly Savings Rate (out of 20): Whether your current monthly investment is enough to reach your retirement goal on time.

3. Cross-Border Readiness (out of 20): How well your wealth is positioned for where you plan to retire, especially relevant for NRI professionals managing assets across India and abroad.

4. Behavioural Consistency (out of 20): Whether you have maintained a disciplined investment habit over time, such as running SIPs without pausing.

5. Protection Layer (out of 20): Whether you have an emergency fund in place covering at least 6 months of expenses.

Score Bands:

0 to 30: Starting Line. You have time, but need a clear plan to get moving.

31 to 50: Building Momentum. Some pieces are in place, but there are gaps to address.

51 to 70: On Track, Not Safe. Decent progress, but not yet secure against life's surprises.

71 to 85: Well Positioned. Strong foundation with room for optimization.

86 to 100: Retirement Ready. You are in excellent shape across all dimensions.

Our Retirement Calculator provides a complete roadmap for your retirement journey, from accumulation to withdrawal phases, along with your personalized Retirement Readiness Score.

Key Benefits:

- Corpus Estimation: Calculate the exact amount needed at retirement to sustain your lifestyle

- Retirement Readiness Score: Get a single score that tells you how prepared you truly are, not just financially but behaviourally

- 5-Dimension Breakdown: Understand exactly where you are strong and where you need to improve

- Inflation Adjustment: See how rising costs will impact your future expenses

- Monthly SIP Target: Know how much to invest monthly to reach your retirement goal

- Rental Income Integration: Factor in passive income sources like rental property

- Cash Flow Projection: View year-by-year breakdown of your retirement corpus

- Gap Analysis: Identify if you are on track or need to increase savings

- Cross-Border Planning: Align your wealth distribution with where you plan to retire

The Retirement Calculator uses multiple financial concepts to project your retirement needs, and layers the R2S scoring engine on top for a holistic readiness assessment.

Financial Calculations:

1. Future Expense Calculation:

Future Monthly Expense = Current Expense x (1 + inflation)^years

2. Required Corpus (4% Rule):

Retirement Corpus = Annual Expenses at Retirement x 25

3. Monthly SIP Required:

Uses reverse SIP formula to calculate required monthly investment

Key Assumptions:

- Inflation Rate: Typically 6 to 7% for Indian context

- Pre-Retirement Returns: 12% (equity-heavy portfolio)

- Post-Retirement Returns: 8% (balanced portfolio)

- Safe Withdrawal Rate: 4% annually (25x rule)

R2S Scoring:

After computing your financial projections, the calculator evaluates your behavioural and structural readiness. It looks at your savings consistency, emergency preparedness, cross-border wealth alignment, and corpus trajectory to produce your Retirement Readiness Score.

Using our Retirement Calculator is intuitive and follows a guided 6-step flow:

Step 1: About You

Enter your current age and when you plan to retire. The calculator will determine how long your money has to grow.

Step 2: Finances

Input your monthly expenses, current savings, monthly investment (SIP), and optional rental income. You will also set how your wealth is split between India and abroad.

Step 3: Your Situation

Answer four quick questions about where you plan to retire, your investment consistency, emergency fund status, and your gut feeling about your readiness score.

Step 4: Assumptions

Review pre-filled assumptions for inflation, expected returns, and life expectancy. Adjust if needed, or leave them as defaults.

Step 5: Your Score

Watch your Retirement Readiness Score calculate and reveal with an animated countdown. See your band, headline insight, and how your gut guess compared to the actual score.

Step 6: Full Report

Get your complete 5-dimension breakdown with progress bars, followed by all the financial projections: required corpus, wealth journey chart, SIP targets, step-up SIP options, and year-by-year cash flow table.

1. Beyond Just Numbers

The R2S evaluates your behaviour, protection, and cross-border alignment alongside your corpus, giving a fuller picture of retirement readiness.

2. Early Planning

Start planning early to leverage the power of compounding over decades.

3. Realistic Goal Setting

Set achievable retirement goals based on your current financial situation and behavioural patterns.

4. Inflation Awareness

Understand how inflation will impact your future purchasing power.

5. Multiple Income Sources

Factor in rental income, pension, or other passive income sources.

6. Gap Identification

Identify shortfalls early and adjust savings rate accordingly. The R2S highlights exactly which dimension needs attention.

7. Withdrawal Strategy

Understand sustainable withdrawal rates to ensure your corpus lasts throughout retirement.

8. NRI-Specific Planning

Plan for retirement across geographies with multi-currency support. The Cross-Border Readiness dimension specifically evaluates how well your wealth aligns with your retirement location.

9. Behavioural Accountability

The consistency dimension encourages disciplined investing, rewarding steady SIP habits over stop-start patterns.