🌴 Retirement Planning
Corpus required and monthly savings, adjusted for inflation.
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.
Inputs
Pro tip
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.