JeevanPulse

Retirement Corpus Calculator

Calculate how much retirement corpus you need and the monthly SIP required to build it. Plan your retirement with inflation-adjusted projections for India.

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* All calculations are approximate.

How Retirement Corpus Calculation Works?

Calculate how much retirement corpus you need and the monthly SIP required to build it. Plan your retirement with inflation-adjusted projections for India.

1

First, your current monthly expenses are projected to retirement age using the expected inflation rate.

2

The retirement corpus needed is calculated to sustain these inflated expenses for 25 years post-retirement.

3

The monthly SIP required is then computed based on the corpus target, years to retirement, and expected investment returns.

4

Starting early dramatically reduces the monthly SIP needed — a 10-year delay can triple the required monthly investment.

Formula Used

Future Expense = Current Expense × (1 + inflation)^years

Corpus = Future Annual Expense × ((1 - (1+r)^-25) / r), where r is the real return rate adjusted for inflation

Important — Read Before You Decide

  • The National Pension System (NPS) offers tax benefits under Section 80CCD(1B) up to ₹50,000 over and above the 80C limit of ₹1.5 lakh
  • EPF alone is unlikely to build a sufficient retirement corpus — most financial planners recommend supplementing it with SIPs in equity mutual funds
  • Healthcare costs in India are rising at 10–14% annually, far exceeding general inflation, and can consume a large portion of your retirement savings
  • Inflation at 6% means your expenses will roughly double every 12 years, so ₹50,000/month today becomes over ₹1.6 lakh in 20 years
  • Early retirement at 45 instead of 60 can require 3–4 times the corpus because you have fewer earning years and more spending years
  • India does not have a universal social security system for the private sector — your retirement income depends entirely on your own savings and investments
  • Pension plans like Atal Pension Yojana provide only ₹1,000–₹5,000/month, which is insufficient for most urban households
  • Medical insurance premiums increase sharply after age 60, making it critical to factor in health cover costs when planning your retirement corpus

What Happens If You Ignore These?

  • Starting late means you need to invest significantly more each month to reach the same corpus — a 10-year delay can triple the required SIP
  • Relying solely on EPF and PPF without equity exposure may leave your corpus short due to returns barely beating inflation
  • Ignoring healthcare inflation can lead to a corpus shortfall of ₹30–50 lakh over a 25-year retirement
  • Without a planned corpus, you may have to depend on children or compromise your lifestyle in retirement
  • Underestimating inflation means your retirement savings run out years before planned

Smart Tips

  • Start your SIP as early as possible — even ₹5,000/month from age 25 can grow to over ₹1 crore by 60 at 12% returns
  • Use NPS for the additional ₹50,000 tax deduction under Section 80CCD(1B) and benefit from long-term equity exposure
  • Review and increase your SIP amount by 10% every year to keep pace with salary growth and inflation
  • Maintain a separate emergency fund of 6–12 months' expenses so you never dip into your retirement corpus
  • Consider a mix of equity (for growth) and debt (for stability) based on your age — shift more to debt as you approach retirement
  • Buy adequate health insurance (at least ₹10–20 lakh cover) well before retirement to lock in lower premiums

Frequently Asked Questions