Change assumptions (inflation, returns, life expectancy)
Tip
Use this free Retirement Calculator to find out how much money you need to retire comfortably in India, and how much you should invest every month from today to get there. It accounts for inflation, your current savings, and returns before and after retirement.
Why plan for retirement now?
Most Indians retire at 58–60, but people now often live to 80 or 85. That means 20–25 years without a salary. Unless you have a full pension, your savings must pay for everything: daily expenses, medical bills, travel and helping family.
The biggest enemy is inflation. At 6% inflation, prices roughly double every 12 years. Expenses of ₹40,000 a month today will become about ₹1.72 lakh a month in 25 years. A retirement plan must be built for that future cost, not today’s.
How this calculator works
The calculator follows four simple steps:
- Future expenses: today’s monthly expenses are increased by inflation until your retirement age.
- Retirement corpus: it works out how much money you need on your retirement day so that you can withdraw your expenses every year, increased by inflation every year, until the age you plan for. The corpus keeps earning the “after retirement” return while you withdraw.
- Your savings: your current retirement savings are grown at the “before retirement” return.
- Monthly SIP: the remaining gap is divided into a monthly investment from today until retirement.
You can change every assumption under “Change assumptions”.
Example
Ravi is 35, spends ₹40,000 a month, wants to retire at 60, plans till age 85, and has ₹5 lakh saved. With 6% inflation, 12% return before retirement and 7% after:
- Monthly expenses at 60: about ₹1.72 lakh
- Corpus needed at 60: about ₹4.61 crore
- His ₹5 lakh savings can grow to about ₹85 lakh
- Monthly SIP needed from today: about ₹19,825
₹4.61 crore sounds huge, but remember that it must pay for 25 years of expenses that keep rising every year.
Start early: the most powerful step
For the same lifestyle of ₹40,000 a month in today’s money, retiring at 60 and planning till 85, with no savings yet:
| Start at age | Monthly SIP needed |
|---|---|
| 25 | ₹12,716 |
| 30 | ₹17,485 |
| 35 | ₹24,304 |
| 40 | ₹34,493 |
| 45 | ₹51,039 |
Starting at 25 instead of 45 cuts the monthly amount needed by about 75%. Every 5 years of delay makes your monthly target much bigger.
Where can retirement money come from?
- EPF (Employees’ Provident Fund): automatic savings for salaried employees, with employer contribution.
- PPF (Public Provident Fund): government-backed, safe, with a 15-year lock-in.
- NPS (National Pension System): a low-cost pension scheme with market-linked returns.
- Mutual fund SIPs: equity funds for long-term growth, with market risk.
- Pension: if you have a pension (for example, in government or some bank jobs), subtract the expected pension from your expenses before using the calculator.
Count only money meant for retirement in “Retirement savings so far”. Do not count your house or money set aside for children’s education.
Banker’s tips for a stress-free retirement
- Get health insurance early. Medical costs are the biggest risk to retirement savings, and premiums rise sharply after 60.
- Clear all loans before retiring. Plan your home loan to finish before your retirement date.
- Increase your SIP every year. A Step-Up SIP makes a large target much easier to reach.
- Move to safety as retirement nears. In the last 5 years, gradually shift money from equity to safer options.
- Do not use retirement money for other goals. Keep separate investments for weddings, education and holidays.
- Review every year. Update your expenses and savings in this calculator once a year.
Frequently asked questions
How much money do I need to retire in India?
It depends on your expenses, your age, inflation and how long you plan for. A common rough check is 25–30 times your annual expenses at retirement, but this calculator gives a more personal number based on your own inputs.
What inflation rate should I use?
Many planners use 6% for general expenses. If you expect high medical or lifestyle costs, using 7% gives a safer estimate.
What return should I assume after retirement?
After retirement, most people keep money in safer options such as FDs, senior citizen schemes and debt funds, so a lower return of around 6–8% is usually assumed.
Should I include EPF and PPF in current savings?
Yes. Include EPF, PPF, NPS and any investments you have kept aside for retirement. Do not include your home or money meant for other goals.
Is this result guaranteed?
No. It is an estimate based on the assumptions you enter. Actual inflation and returns will differ, so review your plan every year.
Related calculators
- SIP Calculator – see how your monthly SIP grows
- Step-Up SIP Calculator – increase your SIP every year
- Financial Health Check – check your overall money health
This calculator gives estimates for planning only and is not financial advice. Market-linked investments are subject to risk.