How much you need to retire
A common way to size a retirement corpus is to divide a year of spending by the share of the corpus you plan to withdraw each year. The lower the withdrawal rate, the bigger the corpus and the longer it is meant to last. The withdrawal rate and inflation on this page are starting points you can change, not recommendations.
Spending ₹50,000 a month is ₹6,00,000 a year. At a 3.5% withdrawal rate that needs a corpus of about ₹1,71,42,857 in today’s money. The calculator also shows that figure in the rupees of the year you retire, because prices will have risen by then.
Corpus = yearly spending ÷ withdrawal rate
Why inflation matters so much
At 6% inflation, prices roughly double every 12 years. The ₹1.71 crore corpus in today’s money becomes about ₹9.85 crore in rupees of 30 years from now. Both describe the same standard of living, which is why the calculator shows your target both ways.
Enter the return you assume as an ordinary yearly figure, before inflation. The calculator takes the inflation rate you set off that return, so your savings and your target are compared in the same today’s rupees rather than mixing old and new money.
When your savings get there
Once you enter the return you assume on your investments, the calculator projects your current savings and monthly saving forward and shows the age at which they would reach the corpus. It also shows the monthly saving it would take to get there by the retirement age you entered.
This page never fills in a return for you. Returns are uncertain and vary over time, so the result is only as good as the number you give it; try a cautious figure alongside a hopeful one to see the range.
How much money do I need to retire in India?+
Divide a year of your expected spending by the withdrawal rate you are comfortable with. Spending ₹50,000 a month, or ₹6,00,000 a year, at a 3.5% withdrawal rate needs about ₹1,71,42,857 in today’s money. Your own figure depends on your spending, the rate you choose and your other income in retirement.
How does inflation change my retirement corpus?+
It raises the number of rupees you will need. At 6% inflation, ₹1.71 crore of today’s spending power is about ₹9.85 crore in 30 years. The calculator shows both so you can compare your target with a figure quoted in future rupees.
What withdrawal rate does this calculator use?+
It starts at 3.5% a year, which you can change. A lower rate needs a bigger corpus but draws the money down more slowly; a higher rate needs less but carries more risk of running out. The choice is yours to make.
Why does the calculator ask me for a return instead of assuming one?+
Because any return figure is a guess about the future, and the result swings a great deal with it. Muktify never supplies an expected return. Enter the return you assume, and try more than one to see how sensitive the answer is.
Does the retirement corpus include my EPF and other savings?+
Only what you enter. Add the savings you intend to use for retirement, such as EPF, PPF or investments, in the amount already saved, and your regular contributions in the monthly saving. A pension or rent you expect in retirement reduces the spending the corpus must cover.