Calculate the corpus you need for a comfortable retirement and the monthly SIP to get there. Inflation-adjusted, realistic projections.
The most powerful force in retirement planning is time. Thanks to compound interest, even small amounts invested early can grow into a substantial corpus.
Consider this example: If you invest ₹10,000/month starting at age 25 at 12% returns, by age 60 you would have approximately ₹6.5 crore. But if you start at age 35, you would have only about ₹1.8 crore — nearly 3.5 times less, despite investing for just 10 fewer years.
Every year you delay costs you significantly. The best time to start is now.
Albert Einstein reportedly called compound interest the "eighth wonder of the world." Here is why it matters for retirement:
This is why consistency matters more than the amount. A disciplined ₹15,000/month SIP for 30 years beats a ₹50,000/month SIP for 10 years.
Inflation is the silent killer of retirement plans. At 6% inflation:
This is why our calculator adjusts for inflation — what looks like a comfortable corpus today may not be sufficient 25 years from now. Always plan in real (inflation-adjusted) terms.
A common rule of thumb is to accumulate 25–30 times your annual expenses at the time of retirement. For example, if your monthly expenses at retirement will be ₹1,00,000, you need approximately ₹3–3.6 crore corpus. However, the exact amount depends on inflation, expected post-retirement returns, life expectancy, and your desired lifestyle.
The earlier the better! Starting at age 25 vs 35 can make a massive difference due to compounding. Starting 10 years earlier can mean investing 3–4 times less monthly to reach the same corpus. Even small amounts invested early grow significantly over 30+ years. Ideally, start as soon as you get your first paycheck.
For long-term retirement planning in India, assume 6–7% inflation. While RBI targets 4%, actual consumer inflation in India has historically been higher. Healthcare inflation is even higher at 10–14% annually, which becomes a major expense in retirement years.
Both are excellent retirement instruments. NPS offers additional tax deduction of ₹50,000 under Section 80CCD(1B) and invests in equity for higher returns. PPF is fully tax-free (EEE) and risk-free but offers lower returns. An ideal strategy is to use both: NPS for growth and PPF for the safe debt portion of your portfolio.
The 4% rule (from the Trinity Study) suggests you can safely withdraw 4% of your retirement corpus annually without running out of money for 30 years. However, for India, a more conservative 3–3.5% withdrawal rate is recommended due to higher inflation and longer life expectancy. This means you need approximately 28–33 times your annual expenses as your retirement corpus.
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