Retirement Planning Calculator
Retirement Planning Summary
⚠️ This is an indicative projection. Actual inflation, returns, and life circumstances will vary. Start planning early — every year of delay significantly increases the monthly savings required. Consult a SEBI-registered financial planner for personalised advice.
Retirement Corpus Benchmarks — India
| Monthly Expenses Today | Retire at 60 (@ 6% inflation) | Retire at 55 | Retire at 50 |
|---|---|---|---|
| Rs. 30,000 | ~Rs. 2.5 Cr | ~Rs. 3.2 Cr | ~Rs. 4.0 Cr |
| Rs. 50,000 | ~Rs. 4.2 Cr | ~Rs. 5.3 Cr | ~Rs. 6.6 Cr |
| Rs. 75,000 | ~Rs. 6.3 Cr | ~Rs. 8.0 Cr | ~Rs. 9.9 Cr |
| Rs. 1,00,000 | ~Rs. 8.3 Cr | ~Rs. 10.6 Cr | ~Rs. 13.2 Cr |
Estimates assume 6% annual inflation, 7% post-retirement return, and 20-year retirement period. Actual corpus required depends on personal circumstances.
Best Instruments for Retirement Savings in India
- EPF (Employee Provident Fund): Mandatory for salaried employees. 12% of basic salary contributed by employee + employer. Current rate: 8.25% p.a. Tax-free on retirement.
- PPF (Public Provident Fund): 7.1% p.a. tax-free returns, 15-year tenure (extendable). EEE status — fully tax-free. Max Rs.1.5 lakh/year.
- NPS (National Pension System): Market-linked, flexible asset allocation. Extra Rs.50,000 deduction under 80CCD(1B). Partial withdrawal allowed.
- Equity Mutual Funds: Highest long-term returns potential (10–15%). Best for accumulation phase with 10+ year horizon.
- Senior Citizen Savings Scheme (SCSS): 8.2% p.a. guaranteed, for 60+ age. Max Rs.30 lakh. Quarterly interest payout.
Frequently Asked Questions
The earlier, the better — ideally in your 20s when you start earning. Starting at 25 vs 35 can reduce your required monthly SIP by more than half due to the power of compounding. Even if you start late (40+), it's never too late — the key is to increase savings rate significantly and be more aggressive with investments. Rule of thumb: save at least 20% of your income for retirement from Day 1 of employment.
The 4% rule (originating from US research) suggests you can safely withdraw 4% of your corpus annually during retirement without depleting it over 25–30 years. In India, with higher inflation (6–7%), financial planners often recommend a 3–3.5% withdrawal rate. This means if you need Rs.50,000/month (Rs.6 lakh/year) at retirement, you need Rs.6L ÷ 3.5% ≈ Rs.1.7 Cr corpus (at current purchasing power).
While SG Law India is a legal firm (not a financial advisor), we assist with the legal aspects of retirement planning: Will drafting and succession planning, nomination management for EPF/PPF/NPS, property transfer and estate planning, trust formation for wealth transfer, NRI retirement compliance, and legal documentation for senior citizens. Contact us for a consultation on the legal framework for your retirement assets.
Retirement Estate Planning & Will Drafting
Ensure your retirement assets are protected and transferred as per your wishes. SG Law India helps with Will drafting, succession planning, and nomination management in Pondicherry.