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'll no longer have regular income from employment. The calculator helps you understand the corpus required to sustain your lifestyle for potentially 20-30 years post-retirement, accounting for inflation that erodes purchasing power over time.

Our Retirement Calculator provides a complete roadmap for your retirement journey, from accumulation to withdrawal phases.

Key Benefits:

• Corpus Estimation: Calculate the exact amount needed at retirement to sustain your lifestyle
• 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're on track or need to increase savings

The Retirement Calculator uses multiple financial concepts:

1. Future Expense Calculation:

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

2. Required Corpus (4% Rule):

Retirement Corpus = Annual Expenses at Retirement × 25

3. Monthly SIP Required:

Uses reverse SIP formula to calculate required monthly investment

Key Assumptions:

• Inflation Rate: Typically 6-7% for Indian context
• Pre-Retirement Returns: 12% (equity-heavy portfolio)
• Post-Retirement Returns: 8% (balanced portfolio)
• Safe Withdrawal Rate: 4% annually (25x rule)

Example:

Current monthly expense: ₹50,000

Retirement in: 25 years

Inflation: 6%

Future monthly expense: ₹50,000 × (1.06)^25 = ₹2,14,594

Annual expense at retirement: ₹25,75,128

Required corpus: ₹6.44 Crore (25x annual expense)

Using our Retirement Calculator is intuitive and comprehensive:

Step 1: Enter Your Current Age

Input your present age to calculate the accumulation period.

Step 2: Set Retirement Age

Choose when you plan to retire. Earlier retirement needs larger corpus.

Step 3: Enter Monthly Expenses

Input your current monthly expenses. The calculator will adjust for inflation.

Step 4: Add Current Savings

Include any existing retirement savings or investments.

Step 5: Add Rental Income (Optional)

If you expect rental income post-retirement, add it to reduce corpus requirement.

Step 6: Review Assumptions

Check and adjust life expectancy, expected returns, and inflation rate if needed.

Step 7: Analyze Results

See your required corpus, monthly SIP needed, and year-by-year cash flow projection.

1. Early Planning

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

2. Realistic Goal Setting

Set achievable retirement goals based on your current financial situation.

3. Inflation Awareness

Understand how inflation will impact your future purchasing power.

4. Multiple Income Sources

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

5. Gap Identification

Identify shortfalls early and adjust savings rate accordingly.

6. Asset Allocation Guidance

Plan the transition from aggressive to conservative investments as retirement approaches.

7. Withdrawal Strategy

Understand sustainable withdrawal rates to ensure corpus lasts throughout retirement.

8. NRI-Specific Planning

Plan for retirement across geographies with multi-currency support.