Retirement corpus calculator: how much do you need to retire?
Your retirement corpus has to pay your household’s bills, at future prices, for every year from the day you stop working. This calculator works out that amount from your own numbers, treats healthcare separately because it rises faster than other prices, and shows the monthly investment that would close any gap.
Your figures stay in your browser. Nothing is sent anywhere until you choose to start the full assessment.
Open the calculator to work out your own figure.
How the number is worked out
- Your monthly spending today is grown by 6% a year inflation to the year you retire. That is what the same lifestyle will cost then.
- From then on, each month’s spending keeps rising with inflation until the age your money has to last to. Each of those months is valued at retirement, assuming the corpus earns 7% a year while you draw on it; added together, they are the corpus for living costs.
- Your yearly healthcare spending is treated the same way, but grown at 10% a year medical inflation, and added to the corpus.
- Your existing retirement savings are grown at 12% a year to your retirement date and subtracted. What is left is the gap.
- The monthly investment is the fixed amount that, invested every month from now until you retire and earning 12% a year, would grow to the gap.
A worked example
Vikram is 35 and plans to retire at 60. His household spends ₹60,000 a month, he spends about ₹40,000 a year on healthcare and premiums, and he has ₹15.00 L in EPF, PPF and mutual funds.
By 60, his monthly spending will have grown to about ₹2.58 L. To last until 85, he needs a corpus of about ₹8.45 Cr, of which ₹1.56 Cr is for healthcare. His savings should grow to about ₹2.55 Cr, leaving a gap of ₹5.90 Cr: about ₹31,400 a month from now. Someone who is 45 today, with the same spending and savings, would need about ₹72,600 a month, because there are ten fewer years for the money to grow.
| Monthly spending at retirement | ₹2.58 L |
| Corpus for living costs | ₹6.88 Cr |
| Corpus for healthcare | ₹1.56 Cr |
| Corpus needed | ₹8.45 Cr |
| Savings grown to retirement | − ₹2.55 Cr |
| Gap | ₹5.90 Cr |
| Monthly investment to close it | ₹31,400 |
Assumptions
- Unless you change them under More options: savings earn 12% a year before retirement and 7% after, inflation is 6% a year and medical inflation 10%. These are the same defaults as the full assessment.
- You retire at 60 and the money lasts to 85, unless you choose otherwise.
- The monthly investment stays the same every month; it does not step up with your salary. 12% a year is a long-run equity-style return and is not guaranteed.
- Pension income, rent from property and money from selling a home are not counted. If you expect them, the corpus you need will be smaller.
- Tax on withdrawals is not included.
Frequently asked questions
How much money do I need to retire in India?
Enough to pay your household’s spending, at future prices, from the day you retire until the age you plan for, plus healthcare, which rises faster. Because prices roughly quadruple over 25 years at 6% inflation, the corpus is usually far larger than people expect. This calculator works it out from your own spending and ages.
Should I count my EPF, PPF and NPS?
Yes. Money set aside for retirement in EPF, PPF, NPS, retirement-focused mutual funds and long-term FDs all counts. Leave out your home and money earmarked for other goals, such as children’s education.
Why is healthcare worked out separately?
Medical costs in India have risen faster than general prices for years, and they tend to grow as you age. Growing them at the general inflation rate would understate what retirement healthcare will cost.
What return should I assume after retirement?
Lower than before, because a retirement corpus is usually held in safer investments so that a market fall does not force you to sell at a loss. Between 6% and 8% a year is a common assumption; you can change it under More options.
Is this financial advice?
No. It is an educational estimate built from the figures you enter. For advice on your whole situation, speak to a SEBI-registered investment adviser.