Retirement Calculator
Forget vague ideas about quitting the rat race. What is the actual amount you need to save to achieve financial freedom and enjoy your life post-retirement?
Why Use This Calculator?
Clear Roadmap:
It gives you a simple plan for achieving financial freedom.
Inflation-Ready:
It accurately plans the expense required at retirement and also the corpus required to meet inflation-adjusted expenses starting from the retirement date.
Actionable Steps:
It tells you exactly how much you need to save monthly (SIP) or as a lump sum to achieve your goal.
Retirement Planning
Determine the required retirement corpus and the investment needed.
Retirement Summary
Current
Age
0
Retirement
Date
N/A
Months Left
(Saving Period)
0
Years Fund Should
Last
0
Monthly Expense at Retirement
₹ 0
Total Corpus Needed
₹ 0
Investment Requirements
To Cover Remaining Corpus Gap
Gap: ₹ 0
Required Monthly SIP
₹ 0
Required Lumpsum Today
₹ 0
If Starting with ZERO Current Savings
This assumes current savings are ₹0.
Total Monthly SIP Required
₹ 0
Total Lumpsum Today Required
₹ 0
Example: Planning for Your Retirement.
You will enter the following details to plan your goal:
Input Field
Description
Your Date of Birth and Planned Retirement Age
This determines the number of years you have left to accumulate your savings.
Your Expected Lifespan (Years)
The age until which your retirement corpus needs to last.
Your Family’s Current Monthly Expenses
The estimated monthly spending your corpus must cover after you retire.
Any One-Time Money You Have for Retirement
The current invested value or lump sum you already have designated for this goal.
Expected Price Rise Per Year (Inflation – %)
The estimated rate at which your future living costs will increase.
Expected Growth on Savings (Before Retirement – %)
The assumed annual return rate on your investments leading up to your retirement.
Expected Growth on Money (After Retirement – %)
The assumed annual return rate on your corpus during withdrawal in retirement.
What the Calculator Tells:
Monthly Expense at Retirement
The monthly expense you need at the beginning of your retirement.
Total Corpus Needed (at Retirement)
The final, inflation-adjusted amount you must accumulate by your planned retirement date.
Total Monthly SIP or Total Lumpsum Required
The exact Systematic Investment Plan (SIP) amount required or Lumsum required to hit your Total Corpus Need, including a personalized monthly amount if you have current savings allocated to retirement.
How to use this Calculator?
Calculating your retirement fund is the crucial first step toward financial freedom. Here’s how to translate the calculator’s results into a concrete plan:
- Find Your Freedom Number: The calculator’s main output is the Total Corpus Needed. This is your final savings target.
- Check Feasibility: Look at the Lumpsum and Monthly Investment Needed (SIP). Can you realistically save and invest this amount every month?
- Optimize Your Plan: If the required monthly saving is too high, use the calculator to test changes considering options like:
- Postpone Retirement: Try increasing your planned retirement age by a few years.
- Allocate More Lump Sum: Can you assign any existing assets to your retirement goal
- Increase Expected Returns: Consider allocating a slightly higher percentage of savings to equity if you are comfortable with the risk.
- Invest Systematically: Once you have a manageable SIP amount, your next step is to identify and invest in suitable long-term products (like Corporate NPS, ULIP, or other Mutual Funds) to stay on track.
Schedule a free consultation call to discuss your
goals and to define a strategy.
Frequently Asked Questions (FAQs)
01 What is retirement?
Well, traditionally it is when one stops working at a certain age. From a financial point of view, one can retire when passive income from investment is more than expenses to meet all bills.
02 What is Financial Freedom and FIRE?
While financial freedom is just one part of life, there are many factors that need to be considered while planning retirement. Personally, we recommend everyone to remain meaningfully engaged throughout life.
03 What is a retirement corpus?
A retirement corpus is the total amount of money you need to save to achieve financial freedom. It is designed to cover your living expenses, adjusted for inflation, and maintain your lifestyle after you stop working.
04 Why is it important to consider inflation in retirement planning?
Inflation is vital because it erodes the purchasing power of money over time. Factoring it in ensures your savings will be sufficient to cover future, more expensive living costs. For example, what monthly expense of ₹1 Lakh today might become ₹2 Lakhs when you retire to maintain the same lifestyle due to rising costs of each item.
05 How does the expected return rate affect my retirement planning?
- Before Retirement: A higher expected return means your investments grow faster, helping you build your corpus more quickly or with lower monthly savings.
- After Retirement: Returns determine how long your accumulated corpus will last while you are withdrawing funds, especially while factoring in inflation.
06 What if my investment returns are lower than expected before retirement?
- Increase your monthly savings: Try to put aside more money each month.
- Extend your working years: Work for a few more years to give your corpus more time to grow.
- Adjust your retirement lifestyle: Be prepared to make some changes to your expected expenses in retirement.
- Consult a Financial Consultant: A professional can help you review your plan and recommend necessary adjustments.
07 What are the limitations and uncertainties of this calculator?
This tool provides estimates based on your inputs and assumptions.
- Assumptions are Key: The results depend heavily on the inflation and return rates you assume. Actual returns and inflation in the future may vary significantly from your expectations.
- Market Volatility: It is a static calculation and does not account for real-world uncertainties such as market ups and downs or unexpected life expenses.
