What Is Retirement Corpus?
Retirement corpus is the total investable wealth you need at retirement to fund all living expenses for the rest of your life, without drawing down the principal. It grows with investment returns while expenses grow with inflation.
A useful shortcut is the "25x rule": you need 25 times your annual expenses at retirement. For Rs 60,000/month (Rs 7.2 lakh/year) expenses, the rough corpus target is Rs 1.8 crore. This assumes a 4% safe withdrawal rate, which may be aggressive for India due to structurally higher inflation.
This calculator uses the more precise growing annuity formula, which accounts for both inflation-driven expense growth and post-retirement investment returns simultaneously. The result is almost always different from the 25x shortcut, and increasingly diverges over longer retirements.
How Is Retirement Corpus Calculated? The Growing Annuity Formula
The growing annuity formula calculates the lump sum needed to fund a series of payments that grow at inflation rate g, discounted at return rate r, for n months:
Example: Rs 50,000/month today, retiring in 30 years with 6% inflation and 8% post-retirement return, 25-year retirement. Expense at retirement: Rs 50,000 x (1.06)^30 = Rs 2,87,175. Corpus needed: approximately Rs 4.6 crore using the growing annuity formula.
The donut chart above shows the split between your SIP contributions (typically 10-20% of total corpus) and investment returns (80-90%). That gap is why starting early is so powerful: compound growth, not your contribution rate, builds most of your corpus.
What Is a Safe Withdrawal Rate in India?
The safe withdrawal rate (SWR) is the maximum percentage of your corpus you can withdraw annually without running out of money over your retirement. The US 4% rule (from the Trinity Study, 1998) does not translate directly to India.
For India, 3-3.5% annual withdrawal is more conservative and appropriate for a 25-30 year retirement. Rs 1 crore corpus at 3% SWR supports Rs 2.5 lakh annual withdrawal (Rs 20,800/month). For FIRE scenarios covering 40+ years, 2.5-3% is more prudent.
Post-retirement portfolio strategy: A balanced allocation (60% debt, 40% equity) at age 60-70 has historically returned 8-10% in India. Senior Citizens Savings Scheme (SCSS) at 8.2% p.a. (per RBI rates as of 2025), Pradhan Mantri Vaya Vandana Yojana (PMVVY), and government bonds form the debt core. As you age, shift progressively to SCSS and PMVVY for capital protection.
NPS Calculator
Estimate your NPS corpus at 60, then subtract it from your retirement corpus target to find the gap you need to fill.
FIRE Corpus for Early Retirement in India
FIRE (Financial Independence, Retire Early) requires a larger corpus because retirement can last 40-50 years instead of 25. The standard FIRE corpus is 30-33 times annual expenses at retirement, based on a 3% safe withdrawal rate.
For Rs 80,000/month (Rs 9.6 lakh/year) expenses, FIRE corpus is Rs 2.9-3.2 crore. Early retirement in India has additional considerations: no EPF or NPS maturity until age 60, longer equity exposure required to sustain the corpus, and rising healthcare costs in the 50-65 age band before government health schemes become relevant. Set life expectancy to 95-100 in this calculator when planning for FIRE to account for longer horizons conservatively.
NPS and Retirement Corpus: How They Fit Together
The National Pension System (NPS) is one of the most tax-efficient retirement savings vehicles in India. Contributions up to Rs 1.5 lakh per year qualify under Section 80CCD(1), and an additional Rs 50,000 is deductible under Section 80CCD(1B), saving Rs 15,600 in tax annually for those in the 30% slab.
At age 60, 60% of the NPS corpus is a tax-free lump sum; 40% must be used to purchase an annuity from an IRDAI-empanelled insurer at approximately 6-7% p.a. The NPS corpus, combined with EPF balance, typically covers 40-60% of the retirement corpus needed for salaried employees. Use the NPS Calculator to estimate your projected NPS corpus, then subtract it from this calculator's required total to find your remaining savings gap.
For EPF, the standard calculation uses 12% of basic salary from both employee and employer, compounded at the EPF interest rate (8.25% p.a. as of 2024 per EPFO). Use the EPF Calculator to project your EPF corpus at retirement, then subtract both NPS and EPF from the total corpus needed to find the mutual fund gap.
Retirement Corpus by Age and Monthly Expense
Approximate corpus needed (6% inflation, 8% post-retirement return, retirement at 60, life expectancy 85, 12% pre-retirement CAGR):
| Current Age | Monthly Expense Today | Expense at Retirement | Corpus Needed | Monthly SIP Needed |
|---|---|---|---|---|
| 25 yrs | Rs 30,000 | Rs 1.72 L/mo | Rs 2.8 Cr | Rs 7,200 |
| 30 yrs | Rs 50,000 | Rs 2.87 L/mo | Rs 4.6 Cr | Rs 17,000 |
| 35 yrs | Rs 70,000 | Rs 2.82 L/mo | Rs 4.5 Cr | Rs 28,000 |
| 40 yrs | Rs 1,00,000 | Rs 3.21 L/mo | Rs 5.1 Cr | Rs 74,000 |
| 45 yrs | Rs 1,50,000 | Rs 3.61 L/mo | Rs 5.8 Cr | Rs 2.1 L |
How to Use This Retirement Corpus Calculator
Five inputs determine your required corpus:
- Current monthly expenses: enter all household expenses today. The calculator inflates these to your retirement date automatically.
- Current age and retirement age: the gap is your savings horizon. Starting at 25 vs 35 can cut the monthly SIP required by 50% or more.
- Life expectancy: plan for at least 25 years post-retirement. Set 90 or 95 if you have a family history of longevity, or if you are planning for FIRE.
- More settings (inflation and return rate): click "More settings" to adjust the inflation rate (default 6%) and post-retirement portfolio return (default 8%). Adjust these together to stress-test different scenarios.
- Read the results: the dark box shows total corpus needed and monthly SIP required. The donut shows how much of that corpus will come from your contributions vs investment returns. The stat rows break down the expense at retirement, retirement duration, and compounding contribution.
Build your retirement plan with a CA
A CA can calculate NPS + EPF corpus, model tax-efficient withdrawal strategies, and close the gap with the right investments.
Frequently Asked Questions
Disclaimer: All calculations on this page are indicative only. The growing annuity formula produces a mathematical estimate based on the inputs provided and assumes constant inflation and return rates throughout retirement. Actual returns vary year to year. This calculator is for educational and planning purposes only and does not constitute financial advice. Consult a SEBI-registered investment adviser before making retirement planning decisions.