How much corpus is enough for retirement in India?

The ideal corpus depends on your lifestyle. A common rule of thumb is 25-30 times your annual expenses. For a monthly expense of ₹1 Lakh, a corpus of ₹3-4 Crores is typically recommended in 2025.

What is the 4% rule for retirement?

The 4% rule suggests that if you withdraw 4% of your initial retirement corpus every year (adjusted for inflation), your money should last for at least 30 years.

Should I consider inflation in retirement planning?

Yes, absolutely. Inflation in India averages 6%. If you need ₹50,000 today, you will need nearly ₹1.6 Lakhs in 20 years just to buy the same things. Always plan with 'Real Returns'.

Retirement Planner

How much corpus do you need to retire, and how much should you save each month to get there?

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Recommended. Inflation significantly impacts retirement corpus needs.

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Why do you need a Retirement Corpus Calculator?

Retirement is the longest holiday of your life, but it comes without a paycheck. A retirement calculator helps you estimate how much you need to save today to maintain your current lifestyle tomorrow. In India, with rising medical costs and 6% inflation, a corpus that seems 'huge' today might be barely enough in 20 years. Early planning is the only way to achieve financial independence.

The 4% Rule and FIRE in India

The Financial Independence, Retire Early (FIRE) movement suggests that once your corpus reaches 25-30 times your annual expenses, you are technically free. The '4% Rule' allows you to withdraw safely without depleting your principal too quickly. However, in India, many planners recommend a more conservative 3% withdrawal rate due to volatile markets and higher inflation.

Planning for Post-Retirement Inflation

Most investors forget that inflation doesn't stop once you retire. Your retirement planner must account for a 6% rise in expenses every year even after age 60. This is why your post-retirement portfolio should still have some exposure to Equity Mutual Funds or Blue-chip Stocks to ensure your money lasts as long as you do.

Is ₹1 Crore enough for retirement?

While ₹1 Crore is a milestone, for a middle-class family in a Tier-1 city, it might only last 7-10 years if monthly expenses are ₹75,000. Use our calculator to see your 'Corpus Sustainability' and adjust your SIP contributions accordingly to reach a more realistic target of ₹3-5 Crores.

How much corpus do you actually need?

The standard formula: Annual expenses at retirement × 25 (4% withdrawal rule). But in India with 6% inflation, use 30–33x for safety. If you'll spend ₹1.6 lakh/month at retirement (today's ₹50K inflated over 20 years), you need ₹5.76 crore — not the ₹1.5 crore many people estimate based on today's costs.

Why inflation makes retirement planning hard

₹50,000/month today becomes ₹1,60,354/month in 20 years at 6% inflation. Most people plan for retirement in today's rupees and massively undershoot. Always enable the inflation toggle and plan for future-value expenses. The corpus number will look alarming — that's the correct number.

The cost of starting late

Target: ₹5 crore at 60. At 12% returns: Starting at 25 needs ₹4,500/month SIP. Starting at 30: ₹8,100/month. Starting at 35: ₹14,800/month. Starting at 40: ₹28,000/month. Starting at 45: ₹56,000/month. Each 5-year delay roughly doubles the required monthly investment. Start today, no matter how small.