How to Use This Calculator
Enter your current age and desired retirement age. Input your life expectancy to calculate how many years your savings need to last. Add your current retirement savings and monthly contribution amount. Set an expected annual return (conservative at 6-7% for a balanced portfolio). Click Calculate to see your projected corpus, monthly income in retirement, and whether you're on track. Try adjusting your monthly contribution to see how much more you need to save to reach your goal.
About Retirement Calculator
Planning for retirement is essential for financial security. This calculator projects your retirement corpus based on your current savings, monthly contributions, expected returns, and time horizon. A general rule is that you need about 70-80% of your pre-retirement income annually.
When to Use This Calculator
Use this calculator at least once a year during your financial review to track progress. It's also useful before major life changes like a job switch, marriage, or having children — events that affect your savings capacity. Young professionals can use it to see the massive impact of starting early — saving $500/month from age 25 vs 35 can mean a difference of $500,000+ at retirement. It's also helpful for mid-career workers evaluating if they're on track for early retirement.
How to Interpret Your Results
A 30-year-old with $50,000 saved, adding $500/month at 8% return until age 60: Projected corpus = $1,279,000, Total contributions = $230,000, Interest earned = $1,049,000. Monthly income in retirement = $4,263 (spread over 25 years until age 85). The status shows 'On Track' if the corpus exceeds 70% of the goal. The chart shows your portfolio growing through your working years, peaking at retirement, then declining as you draw down during retirement.
Frequently Asked Questions
How much do I need to retire comfortably?
A common rule is the 25x rule: save 25 times your annual expenses. If you spend Rs. 6 lakh per year, you need Rs. 1.5 crore. The 4% rule says you can withdraw 4% of your corpus annually without running out for 30 years. For early retirement (before 50), aim for 30-35x expenses since your money needs to last longer. Our calculator helps you find your personalized number.
What is the right age to start retirement planning?
The best time is your first paycheck. Starting at 25 vs 35 makes a massive difference. A Rs. 10,000 monthly investment at 12% from age 25 to 60 grows to Rs. 5.5 crore. Starting at 35, the same investment grows to only Rs. 1.6 crore—Rs. 3.9 crore less for the same monthly contribution. Each year of delay costs roughly 8-10% of your final corpus due to lost compounding.
How much of my salary should go toward retirement?
The general recommendation is 15-20% of gross income, including employer contributions. If your employer contributes 8% to EPF, you need to save an additional 7-12%. At age 30, saving 15% is adequate. At age 40, bump it to 25% to catch up. At age 50, you may need 35-40% to retire on time. Use our calculator to find your required savings rate based on your current age and target retirement age.
What is the 4% rule and does it still work?
The 4% rule, based on the Trinity Study, says you can withdraw 4% of your portfolio in year one, adjusted for inflation annually, and have a high probability of not running out for 30 years. Recent research suggests 3-3.5% is safer for longer retirements or lower expected returns. For Indian retirees, consider inflation-adjusted withdrawal rates of 3-4% depending on your equity allocation.
Should I include EPF and PPF in my retirement corpus?
Absolutely. EPF and PPF are excellent retirement vehicles due to their tax-free status and guaranteed returns. However, they are debt instruments and should be balanced with equity investments for growth. A typical retirement portfolio for a 30-year-old might be 70% equity (mutual funds, stocks) and 30% debt (EPF, PPF, FD). As you approach retirement, shift toward debt. Our calculator lets you model different asset allocations.