Guide
Understanding the Retirement Calculator
The retirement calculator estimates the corpus needed to pay for your living costs after you stop working, and the monthly SIP that could build it. Everything shown is an illustration based on your assumptions.
How the retirement corpus is estimated
The calculator first grows your current monthly expenses by inflation up to your retirement age. Then it works out the lump sum that could fund those rising expenses through your retirement years while the remaining money keeps earning a return.
Two different returns are used: one before retirement while you are building the corpus, and a gentler one after retirement when you are drawing from it.
How to use this calculator
- 1
Enter your ages
Add your current age, the age you want to retire and how long you want the money to last.
- 2
Add monthly expenses
Use what you spend today on essentials and comforts.
- 3
Set inflation and returns
Use cautious assumptions for both the earning and the drawing phases.
- 4
Add your savings so far
Include money already set aside for retirement.
- 5
Read the corpus and the SIP
Compare the corpus with the SIP and adjust the inputs until the plan feels realistic.
Plan for a long retirement
People are living longer, so a retirement that starts at 60 can easily last 25 to 30 years. Planning only until the average life span leaves little room if you live longer.
Try a later end age and compare the corpus. The difference shows how much a longer life affects the number.
The levers you can pull
If the number feels too big, there are only a few levers to change. Each one has a cost.
- Retire a little later, which gives you more saving years and fewer retirement years.
- Save more each month, or step up the SIP as income rises.
- Reduce expected retirement spending.
- Include any other income you expect, such as rent or a pension.
What the calculator leaves out
It does not include tax, one-off costs, support for family members or large medical bills. Keep health insurance and an emergency fund separate from the retirement corpus.
Rules and returns change over time, so review your numbers every year.
Frequently asked questions
How much do I need to retire?
It depends on your expenses, inflation, the years you will spend in retirement and your assumed returns. The calculator works it out from your inputs.
Why are there two return assumptions?
Before retirement you may invest for growth, while after retirement many people lean towards stability. Using two figures reflects that shift.
Does it include my EPF or pension?
Only if you add them to the savings figure. Treat them separately if you want to see the effect.
What inflation should I use?
Try a few values. Healthcare and lifestyle costs may rise faster than general prices.
Does it include taxes?
No. Tax rules change over time, so check the latest rules or a qualified tax professional.
How often should I revisit it?
At least once a year and after any big change in income, health or family situation.
All figures in this guide are illustrations based on assumptions, not forecasts. Mutual fund investments are subject to market risks. Read all scheme-related documents carefully.