Retirement Planner – The One Calculator That Will Either Motivate You or Wake You Up

The Question Most Indians Avoid

“How much do I actually need to retire?”

Ask this question to 10 working Indians, and 9 of them will change the subject. It’s uncomfortable. It forces you to think about aging, about the end of your career, about whether the money you’re saving is actually enough.

But here’s the thing – avoiding this question doesn’t make the problem go away. It just means you hit retirement without a plan, and then you’re figuring it out the hard way.

This calculator does the uncomfortable math for you. You tell it your current age, when you want to retire, how much you spend monthly, and what returns you expect – and it tells you exactly how much money you need to have saved by the time you stop working.

How to Use the Retirement Planner

Step 1 – Enter your current age. Be honest. This affects how many working years you have left to save.

Step 2 – Set your retirement age. When do you actually want to stop working? 60? 55? 65? There’s no right answer – pick the age that feels realistic for your career and health.

Step 3 – Enter your current monthly expenses. This is what you spend right now to live comfortably. Include everything – rent or EMI, groceries, utilities, transport, insurance, entertainment, and a buffer for unexpected costs.

Step 4 – Set the expected inflation rate. India’s inflation has historically run at 5-6% per year. This means your ₹50,000 monthly expense today will cost around ₹80,000 per month in 10 years – even if you’re buying exactly the same things.

Step 5 – Enter expected return on investments. What are your retirement savings earning? For a balanced portfolio, 9-10% is reasonable. For a more aggressive equity-heavy portfolio, 11-12% might be realistic.

The calculator then tells you your total retirement corpus target, how much you need to save each month to hit that target, and a year-by-year projection showing whether you’re on track.

Why This Number Is So Much Bigger Than You Think

Most Indians dramatically underestimate how much they need to retire. Here’s why:

Inflation Destroys Purchasing Power

₹50,000 per month sounds like enough today. But in 20 years, at 6% inflation, you’ll need approximately ₹1,60,000 per month to buy the same things. Your retirement corpus needs to account for this – not just for the first year of retirement, but for every year after that.

You Live Longer Than You Plan For

Indians are living longer than previous generations. Planning to age 75 is no longer safe – many people comfortably live into their 80s and 90s. Your retirement corpus needs to last 25-35 years, not just 10-15.

Healthcare Gets Expensive

Medical costs increase dramatically with age. A hospitalisation in your 70s can easily cost ₹2-5 lakhs. Health insurance premiums also rise sharply after 60. If you haven’t budgeted for this, your retirement corpus will drain faster than expected.

No Pension for Most Indians

Unlike government employees who get a pension, the vast majority of private sector Indians have zero guaranteed retirement income. Everything you’ll live on in retirement comes from what you saved during your working years.

The Math Behind It

The retirement planner uses two key calculations:

Step 1: Future value of current expenses (accounting for inflation) Monthly expense at retirement = Current expense × (1 + inflation rate)^years until retirement

Step 2: Total corpus needed to sustain withdrawals This uses the present value of annuity formula to calculate how much money you need today (at retirement) so that monthly withdrawals last your expected retirement period.

Let’s work through a concrete example:

Current age: 35 Retirement age: 60 (25 working years left) Current monthly expenses: ₹60,000 Expected inflation: 6% Expected investment return: 10% Expected retirement duration: 25 years (planning to age 85)

Step 1: Monthly expenses at age 60: = ₹60,000 × (1.06)^25 = ₹60,000 × 4.2919 = ₹2,57,515 per month (what ₹60,000 worth of lifestyle will cost at age 60)

Step 2: Annual expense at retirement = ₹2,57,515 × 12 = ₹30,90,180

To sustain ₹30,90,180 per year for 25 years with 10% returns on the remaining corpus: Required corpus ≈ ₹2,56,00,000 (₹2.56 crore)

Step 3: Monthly savings needed to build ₹2.56 crore in 25 years at 10% return: ≈ ₹25,000 per month

So if you’re 35, earning a decent salary, and want to retire at 60 with the same lifestyle you have today – you need to be saving and investing about ₹25,000 per month. Every month. For 25 years straight.

That number might feel intimidating. Or it might feel motivating. Either way, now you know.

Real Indian Retirement Scenarios

The Early Retirement Dream

Sanjay, 32, works in IT and earns well. He dreams of retiring at 45 – just 13 years away. Current expenses: ₹80,000/month. Inflation: 6%. He wants his money to last until age 85 (40 years of retirement).

Monthly expenses at 45: ₹80,000 × (1.06)^13 ≈ ₹1,81,000 Required corpus for 40 years of withdrawals at 9% return: approximately ₹1,92,00,000 (₹1.92 crore) Monthly savings needed over 13 years at 12% return: approximately ₹53,000/month

That’s a lot. But Sanjay earns well. If he keeps his lifestyle in check and invests aggressively, it’s achievable. The calculator shows him exactly where he stands each year.

The Late Starter’s Reality

Meena is 48 and has barely saved anything for retirement. She earns ₹70,000 per month and spends most of it. Current savings: ₹5 lakhs.

She wants to retire at 62 (14 years away) with expenses of ₹50,000/month (current). Planning to live to 80 (18 years of retirement).

Monthly expenses at 62: ₹50,000 × (1.06)^14 ≈ ₹1,13,000 Required corpus: approximately ₹1,45,00,000 (₹1.45 crore)What she needs to save monthly to reach this (given her existing ₹5 lakhs at 10% return): approximately ₹38,000/month

That’s more than half her salary after expenses. Unrealistic. So the calculator tells her the truth: she needs to either work longer, reduce her lifestyle expectations in retirement, or find ways to significantly increase her income now. Better to know this at 48 than at 62.

The Comfortable on-Track Investor

Rahul, 40, has been investing ₹20,000/month via SIP for 8 years. His current corpus is ₹28 lakhs. Current expenses: ₹55,000/month. Wants to retire at 60.

The calculator shows: at his current savings rate and expected returns, he’ll have approximately ₹1,80,00,000 by age 60. His required corpus (accounting for inflation to age 85) is about ₹1,95,00,000.

He’s close – but not quite there. If he increases his monthly investment by ₹5,000 (to ₹25,000), he’ll comfortably cross the target. A small adjustment now prevents a big shortfall later.

The 4% Rule – India’s Version

The “4% rule” from Western financial planning says: if you withdraw 4% of your corpus each year, your money should last about 30 years (assuming a balanced portfolio earning around 7-8% after inflation).

For India, this needs adjustment:

• Indian inflation is higher (5-6% vs 2-3% in the US)
• Indian markets have historically returned higher (12-15% for equity vs 8-10% in the US)
• Healthcare costs are less predictable

A 3.5-4.5% withdrawal rate is a reasonable starting point for Indian retirees, depending on your portfolio mix and risk tolerance. Our calculator uses this framework internally to estimate your required corpus.

Building Your Retirement Corpus – The Strategy

Phase 1: Foundation (Age 25-35)

This is when compounding has the most time to work. Even small investments now grow enormously by retirement.

• Target: Invest 20-25% of income
• Focus: Aggressive equity (80-90% equity, 10-20% debt)
• Key action: Start early. Even ₹5,000/month matters hugely here.

Phase 2: Accumulation (Age 35-50)

This is your peak earning years. Invest as much as possible.

• Target: Invest 25-35% of income
• Focus: Balanced growth (60-70% equity, 30-40% debt)
• Key action: Increase investments with every salary hike. Step-up SIPs are perfect here.

Phase 3: Preservation (Age 50-60)

Start shifting towards lower risk as retirement approaches.

• Target: Maintain 25-30% investment rate
• Focus: Conservative growth (40-50% equity, 50-60% debt)
• Key action: Review your corpus annually against your retirement target. Adjust if needed.

Phase 4: Distribution (Age 60+)

Now you’re withdrawing, not accumulating. But your remaining corpus should still be invested.

• Focus: Capital preservation with moderate growth (30% equity, 70% debt)
• Key action: Use SWP (Systematic Withdrawal Plan) for regular income. Rebalance annually.

Tax-Efficient Retirement Savings Options for Indians

PPF (Public Provident Fund)

• Returns: ~7.1% (government-set, changes periodically)
• Tax: Completely tax-free – contributions, interest, and withdrawals
• Tenure: 15 years (can extend in 5-year blocks)
• Limit: ₹1.5 lakhs per year
• Why it matters for retirement: Tax-free compounding over 15+ years is incredibly powerful. PPF should be part of every Indian’s retirement plan.

ELSS (Equity Linked Savings Scheme)

• Returns: Market-linked, historically 10-14% over long periods
• Tax: Deduction up to ₹1.5 lakhs under Section 80C. LTCG above ₹1.25 lakhs taxed at 12.5%
• Lock-in: 3 years (shortest among 80C options)
• Why it matters: Combines tax savings with equity growth – a powerful retirement-building combo.

NPS (National Pension System)

• Returns: Market-linked, managed by professional fund managers
• Tax: Additional deduction of ₹50,000 under Section 80CCD(1B), over and above the ₹1.5 lakh 80C limit
• Withdrawal: 60% lump sum (tax-free up to a limit), 40% must go into an annuity
• Why it matters: The extra ₹50,000 tax deduction is unique to NPS. Worth considering if you’re in a high tax bracket.

Regular Equity Mutual Funds (via SIP)

• Returns: Market-linked, historically 10-15% for equity funds over 10+ years
• Tax: LTCG above ₹1.25 lakhs at 12.5% (after 1 year holding)
• Flexibility: Full flexibility – invest, withdraw, switch anytime
• Why it matters: The most flexible retirement-building option. No lock-in, no mandatory annuity, full control.

Mistakes That Derail Indian Retirement Plans

Planning for Age 65 When You’ll Live to 85

Life expectancy in India is rising fast. Plan for at least 25-30 years of retirement. Running out of money at 75 is not a retirement plan – it’s a crisis.

Ignoring Inflation Completely

“I spend ₹50,000 now, so I’ll need ₹50,000 in retirement.” No. You’ll need ₹80,000-1,00,000 or more, depending on when you retire. Inflation is silent but devastating to retirement planning.

Counting on Children to Support You

This used to be the Indian default – retire, move in with your son or daughter, let them take care of everything. It’s becoming less reliable as joint families shrink, children move cities for work, and younger generations face their own financial pressures. Don’t build your retirement plan on this assumption.

Waiting Until 45 or 50 to Start “Seriously” Saving

By 45, you’ve already lost 20 years of compounding. The money you could have invested at 25 and left alone would be worth 7-8x more than what you invest at 45. Every year of delay is extraordinarily expensive.

Keeping Everything in “Safe” Instruments

FDs and savings accounts feel safe. But at 6-7% returns in a 5-6% inflation environment, you’re barely keeping your money’s value intact. For a 25-30 year retirement plan, you need meaningful equity exposure – even if it feels uncomfortable.

Quick Tips for Retirement Planning

Run this calculator today. Not next week. Today. See the number. Let it sink in. Then start (or increase) your investments tomorrow.

Use the 50-30-20 rule as a starting point. 50% of income on needs, 30% on wants, 20% on savings/investments. If 20% isn’t enough to hit your retirement target, find ways to cut the 30% and move it to savings.

Automate everything. Set up auto-debit for SIPs. Set up auto-transfer to PPF. Remove the decision-making from the equation. The best retirement plan is one that runs on autopilot.

Review annually – not daily. Check your retirement corpus against your target once a year. Make adjustments if needed. Don’t obsess over monthly market fluctuations.

Don’t forget health insurance. A single hospitalisation in your 60s or 70s can wipe out years of savings. Good health insurance (₹10-20 lakhs coverage) is not optional in a retirement plan – it’s essential.

Questions That Actually Matter

How much do I really need to retire in India? It depends on your lifestyle, when you retire, and how long you live. The calculator gives you a specific number based on your inputs. As a rough rule, plan for 25-30x your annual expenses at the time of retirement.

Is ₹1 crore enough to retire on? At a 4% withdrawal rate, ₹1 crore gives you ₹4 lakhs per year – about ₹33,000 per month. That’s tight but survivable in smaller cities. In metros, it’s probably not enough. The calculator will tell you exactly where you stand.

What if I can’t save 20% of my income? Start with whatever you can – even 5% or 10%. Something is infinitely better than nothing. And as your income grows, increase the percentage. The calculator can show you how even small increases in your monthly investment change the outcome dramatically.

Should I factor in my spouse’s income and savings? Absolutely. Retirement planning should be done at the household level, not individually. Combined incomes, combined expenses, combined savings – the calculator works best when you input the full family picture.

What about inheritance or property? Don’t count on inheritance – it might not come, or it might come too late. Property can be part of the plan (rental income, selling later), but it’s illiquid and unpredictable. Build your retirement plan on liquid, investable assets first.

Your Retirement Is Not Someone Else’s Problem

In India, there’s no social security safety net like in some Western countries. No government pension for most private sector workers. No guaranteed fallback if your savings run out.

Your retirement is entirely, completely, 100% your responsibility.

The good news? The math works. If you start early enough and save consistently enough, even a modest monthly investment builds into a life-changing corpus. The calculator proves this.

The bad news? Every day you wait makes the math harder. The required monthly savings increase. The required corpus stays the same or grows. Time is the one resource you cannot get back.

So use this calculator. See your number. And then actually do something about it.

---

Disclaimer:

This retirement planner is for educational and informational purposes only. It uses standard financial planning calculations to estimate retirement corpus requirements based on the inputs you provide.

Important points:

• The calculator assumes constant inflation and constant investment returns throughout the planning period. Real-world figures will vary significantly year to year.
• Tax laws, PPF rates, and other regulations mentioned are based on current Indian rules and may change. Consult a tax advisor for your specific situation.
• The calculator does not account for unexpected expenses, healthcare cost inflation, or changes in lifestyle.
• Retirement planning involves many variables that no calculator can fully capture – including longevity, health, family obligations, and economic changes.
• Nothing here should be treated as a guarantee of any specific outcome or as advice to invest in any particular product.
• This calculator has no connection to SEBI, EPFO, or any government body.

Retirement planning is one of the most consequential financial decisions of your life. Please consult a SEBI-registered investment advisor or certified financial planner for personalised guidance.

---

Also Try These Calculators on TappingMoney:

• SIP Calculator – The main tool to build your retirement corpus
• SWP Calculator – Plan how to withdraw from your corpus after retiring
• PPF Calculator – See how PPF contributes to your retirement savings
• Compound Interest Calculator – Understand why starting early matters so much
• Lumpsum Calculator – Deploy any windfalls towards your retirement goal

---

Page last updated: January 2026 | Free to use | No sign-up needed