📖 What is Retirement Corpus?
Retirement Corpus is the total amount you need at retirement to live comfortably without earning an active income. This calculator considers inflation (6-7%), life expectancy, and expected returns to give you a personalized retirement goal. It also includes FIRE targets (25x, 30x, 40x) and monthly SIP required.
📐 Retirement Corpus Formula
Corpus = Annual Expense × [1 − (1 + r)−n] / r
Where r = real return rate (post-retirement), n = number of years in retirement (life expectancy − retirement age)
📝 Worked Example
Example: Age 35 → Retire at 60 → Live to 85
Given: Current Age = 35 | Retirement Age = 60 | Life Expectancy = 85
Monthly Expenses: ₹50,000 | Inflation: 6% | Expected Returns: 8%
Step 1: Years to retire = 60 − 35 = 25 years
Step 2: Expense at retirement = ₹50,000 × (1.06)25 ≈ ₹2,14,600/month
Step 3: Real return = (1.08 ÷ 1.06) − 1 ≈ 1.887%
Step 4: Corpus needed for 25 years of retirement ≈ ₹5.08 crore
Result: Monthly SIP required ≈ ₹39,000/month for 25 years at 8% returns.
💡 Notice how inflation increases the expense from ₹50K to over ₹2.14L in 25 years — this is why inflation must be factored into planning.
📊 Retirement Planning Guide
| Age | Corpus Multiple | Monthly SIP |
|---|
| 25 years | 40-50x | ₹15,000-20,000 |
| 35 years | 30-40x | ₹30,000-35,000 |
| 45 years | 20-30x | ₹70,000-80,000 |
| 50 years | 15-25x | ₹1,20,000+ |
💡 Retirement Planning Tips
- Start early — a 25-year-old saving ₹10,000/month can build ₹4+ crore by 60
- Use 50/30/20 rule: 20% of income for savings
- Diversify investments: NPS, PPF, EPF, mutual funds
- Inflation at 6% doubles expenses every 12 years
- Follow the 4% withdrawal rule for sustainable income
⚠️ Limitations & Assumptions
Important Notes
- Assumes a constant inflation rate and constant returns — actual rates vary yearly.
- Does not account for sudden medical emergencies, long-term care costs, or major life events.
- Does not include pension income, Social Security, rental income, or inheritance.
- Does not account for taxes on withdrawals or investment gains.
- FIRE targets (25x, 30x, 40x) are based on the 4% rule and may not suit every lifestyle.
- Results are estimates — actual corpus needs depend on your lifestyle and longevity.
📚 References & Sources
Authoritative Sources
- Trinity Study — The 4% Safe Withdrawal Rule
- Employee Benefit Research Institute (EBRI) — Retirement Confidence Survey
- Investopedia — Retirement Planning and FIRE Movement
- RBI (India) — NPS, PPF, and Retirement Savings Guidelines
- SEBI Investor Education — Long-term wealth planning
❓ Frequently Asked Questions
How much retirement corpus is enough? ▼
A common rule is 30-40 times annual expenses. For ₹50,000/month (₹6L/year), you need ₹1.8–2.4 crore. But the exact amount depends on your life expectancy, inflation, and desired lifestyle. Use this calculator for a personalized estimate.
What is the 4% rule? ▼
The 4% rule says you can withdraw 4% of your corpus in the first year of retirement, then adjust for inflation. For ₹12L/year (₹1L/month) need, the corpus needed = ₹12L ÷ 0.04 = ₹3 crore.
How does inflation affect retirement? ▼
At 6% inflation, expenses double every 12 years. ₹50,000 today becomes ₹1L in 12 years and ₹2L in 24 years. This is why your corpus must grow faster than inflation.
What is FIRE? ▼
FIRE (Financial Independence Retire Early) is a movement where people save 25–40× their annual expenses to retire early. Lean FIRE = 25x (frugal), Regular FIRE = 30x (moderate), Fat FIRE = 40x (luxury).
Are these calculations accurate? ▼
The calculator uses standard financial formulas used by advisors worldwide — including real return adjustment and inflation-adjusted corpus. However, actual outcomes depend on market performance, inflation, and longevity. Always consult a certified financial planner for personalized advice.
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⚠️ Disclaimer
Important
This Retirement Corpus Calculator is provided for informational and educational purposes only.
It is not a substitute for professional financial advice. Actual investment returns, inflation rates, taxes, and life expectancy
will affect your actual corpus requirement. Always consult a qualified financial advisor or certified financial planner
before making retirement decisions.