🌴 Retirement Planning
Corpus required and monthly savings, adjusted for inflation.
This calculator estimates the total retirement corpus you'll need, and the monthly savings required to reach it, after accounting for inflation eating into your future expenses.
It first inflates your current annual expenses forward to your retirement age using the compound inflation formula:
Future Expense = Current Expense × (1 + inflation)years
It then estimates the corpus needed to sustain that (inflated) expense level through retirement using a safe withdrawal assumption — the same question Portfolio Longevity stress-tests in detail — and finally solves for the monthly SIP required to build that corpus by your target retirement date.
If you're 30, plan to retire at 60, spend 6,00,000/year today, assume 6% inflation and a 4% safe withdrawal rate, your future annual expense at retirement balloons to roughly 34,00,000/year, requiring a corpus of around 8,50,00,000. Spread over 30 years at a 10% expected return, that translates into a monthly SIP the calculator computes directly.
The two most common errors are ignoring inflation entirely (using today's expenses as the target) and assuming an unrealistically high safe withdrawal rate, which understates the corpus you actually need.
What it does
Sizes the retirement corpus you need to fund inflation-escalating withdrawals, then calculates the monthly savings required to build it.
When to use it
Use it whenever you want to know 'how much is enough' to retire — the corpus figure and the monthly saving target are the two numbers to act on.
Assumptions
- Today's expenses inflate every year until retirement.
- Post-retirement withdrawals grow with inflation and are taken yearly.
- Pre- and post-retirement returns are constant; shortfalls in some years are covered by better years.
If your 'Monthly savings needed' exceeds 'Projected from current savings', the gap should be closed with real actions: save more, plan to retire later, or lower expected post-retirement spending. A one-year later retirement or a 1% higher return usually moves the number more than minor budget tweaks.