Retirement Fund Calculator
Plan for a dignified and stress-free retirement with inflation-adjusted results
What is a Retirement Fund?
A Retirement Fund (or Retirement Corpus) is the total amount of money you need to have accumulated by the day you stop working to sustain your lifestyle for the rest of your life. Unlike other financial goals, retirement is the only one you cannot take a loan for. A successful retirement plan must account for two silent destroyers of wealth: **Inflation** and **Taxes**. Inflation ensures that ₹1 lakh today will only have the purchasing power of about ₹25,000 thirty years from now. This is why a simple search for "retirement fund with inflation" is critical for modern investors. The goal is to build a corpus large enough that its returns can cover your monthly expenses without depleting the principal too quickly. This is often called the "Safe Withdrawal Rate" or the "Financial Independence Number."
Retirement Planning Logic
Step 2: Corpus = ∑ Future Expenses / (1 + Post-Return)^n
How to use this planner
- Enter your current age and your planned retirement age
- Input your current monthly essential household expenses
- Adjust expected inflation and investment return rates
- See your required retirement corpus and the monthly savings needed to get there
Why Start Retirement Planning Early?
- To benefit from 20-30 years of compounding returns
- To estimate the gap between your current savings and future needs considering 6% average inflation
- When you want to plan for an early retirement (FIRE - Financial Independence, Retire Early)
- To decide how much to allocate to NPS, PPF, and Equity Mutual Funds
- To adjust your lifestyle spending today for a better tomorrow
- To visualize how ₹1 Crore today will look after 20 years of inflation
Real-World Examples
The Early Starter (Age 25)
A young professional starting early with 35 years of work ahead.
💡 Small monthly investments of ₹15,000 can easily hit this target due to the long compounding window and early start.
Late Starter (Age 45)
Mid-career professional with high expenses and only 15 years left.
💡 Requires aggressive saving (40-50% of income) and higher equity exposure to close the gap created by inflation.
Early Retirement Aim (Age 30)
A software engineer aiming to retire at 45 to pursue hobbies.
💡 Retiring early means the corpus must last 40+ years instead of 20, necessitating a much larger inflation-protected safety net.
Retirement Investment Options in India
A balanced retirement portfolio usually combines safety with growth to beat inflation.
| Option | Risk Level | Tax Benefit | Liquidity |
|---|---|---|---|
| National Pension System (NPS) | Moderate | High (EEE/EET) | Low (Lock-in) |
| Equity Mutual Funds | High | LTCG @ 12.5% | High |
| Public Provident Fund (PPF) | Zero | Best (EEE) | Moderate |
| EPF / VPF | Zero | High | Low |
| Real Estate/Rent | Moderate | Standard | Low |
The 4% Rule & Retirement Wisdom
The Impact of Inflation on Retirement (The Silent Wealth Killer)
Most people underestimate their retirement needs because they think in today's value. At an inflation rate of 6%, your expenses will DOUBLE every 12 years. If you need ₹50,000 to survive today, you will need ₹2 Lakhs per month in 24 years just to maintain the SAME lifestyle. Our calculator uses advanced compound interest formulas to ensure your future corpus is truly inflation-proof.
Calculating Your Financial Independence Number (FIRE)
To achieve early retirement, you need to reach your FIRE number, which is typically 25x to 30x your annual expenses. However, for a 40-year retirement, some use a 35x multiple to account for medical inflation and elongated life expectancy. This calculator helps you pinpoint that exact milestone.
Retirement Planning FAQs
How much corpus is enough to retire in India?
A general rule of thumb is 25 to 30 times your annual expenses. If you spend ₹12 lakhs a year, you need ₹3 Cr to ₹3.6 Cr. However, if you are young, you must account for inflation which could double this requirement every 10-12 years.
Is ₹5 Crore enough for retirement in 2045?
Given a 6% inflation rate, ₹5 Crore in 2045 will have the purchasing power of roughly ₹1.5 Crore today. It might be enough for a modest lifestyle in a Tier-2 city, but may fall short for a premium lifestyle in metros.
What is the best age to start retirement planning?
The best age is your first paycheck. Delaying retirement planning by just 10 years can double the monthly investment required to reach the same goal.
Should I include my house in the retirement corpus?
No. Your primary residence is not part of your liquid corpus unless you plan to sell it and downsize, or use reverse mortgage. Only count assets that generate income or can be sold easily.