Question 1

How much corpus do I need to retire?

Accepted Answer

A common rule is 25x your annual expenses (the 4% rule). This calculator uses a more precise approach: it calculates the present value of all your inflation-adjusted future expenses over your retirement period, accounting for post-retirement investment returns.

Question 2

What is the real rate of return in retirement?

Accepted Answer

The real rate is the return after adjusting for inflation. Formula: Real Rate = (1 + nominal_return) / (1 + inflation) - 1. For example, 8% return with 6% inflation gives a real rate of 1.89%. This matters because your expenses grow with inflation even as your corpus earns returns.

Question 3

Should I account for existing savings like PF in retirement planning?

Accepted Answer

Yes. This calculator has an 'Existing Corpus' field where you can enter your current PF, NPS, or other retirement savings. This corpus is projected to grow until retirement and reduces the additional SIP you need to invest.

Question 4

What life expectancy should I use?

Accepted Answer

Use 80-85 years as a conservative planning assumption. Life expectancy in India is rising. Planning to 85 with a buffer ensures you do not outlive your corpus. The calculator defaults to 80 but you can set it as high as 100.

Question 5

Does the retirement calculator account for inflation?

Accepted Answer

Yes. The calculator adjusts your current monthly expense for inflation up to retirement age to find your expense at retirement. It then calculates the corpus needed to sustain those inflation-growing expenses throughout your retirement using the real rate of return formula.

Retirement Calculator

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