How much corpus do I need to retire in India?

A common thumb rule is to aim for a corpus that is 25 to 30 times your annual expenses at the time of retirement. This ensures you can safely withdraw enough to cover expenses without depleting the principal prematurely.

Is ₹1 Crore enough to retire in India?

It depends on your lifestyle, inflation, and retirement age. For a moderate lifestyle in a non-metro city today, it might suffice for a few years, but with 6% inflation, its purchasing power will halve in about 12 years. Always calculate your specific need.

At what age should I start investing for retirement?

As early as possible. Starting in your 20s allows the power of compounding to do most of the heavy lifting. Even a 5-year delay can double the monthly investment required to reach the same goal.

How does inflation affect retirement planning?

Inflation reduces purchasing power over time. Expenses of ₹40,000 today might rise to over ₹1.5 Lakhs in 20 years at a 6% inflation rate. Your retirement corpus must account for these inflated future expenses.

Should I use SIP or lump sum for retirement?

For most salaried individuals, a systematic investment plan (SIP) is ideal because it matches monthly income and averages out market volatility (rupee cost averaging). Lump sums can be added whenever you get a bonus or windfall.

Interactive Tool

Retirement SIP Calculator

Find out exactly how much you need to invest every month to maintain your current lifestyle after retirement. We factor in inflation, returns, and the time you have left.

Plan Your Retirement

Current Age

Yrs

Retirement Age

Yrs

Current Age: 2535 Years to InvestRetirement Age: 60

Monthly Expenses Today

₹40k

Expected Return Rate

Expected Inflation

Required Corpus

₹9.22 Cr

Based on 25x future annual expenses

Start Now

Required Monthly SIP

₹14,200

Invest for 35 years

Delay 5 Yrs

Cost of Delay

₹26,129

Invest for 30 years

Delaying your SIP by just 5 years means investing ₹11,929 more every month!

The 4% Rule — Why 25× Annual Expenses?

The calculator aims for a retirement corpus that is 25 times your expected annual expenses at retirement. This is based on the famous 4% Rule (or Safe Withdrawal Rate).

If you withdraw 4% of your total retirement corpus in your first year of retirement, and adjust that amount for inflation in subsequent years, your money is highly likely to last for a 30-year retirement period without running out, assuming a balanced portfolio. (25 × 4% = 100%).

Inflation: The Silent Wealth Destroyer

Why does your required corpus look so huge? It's because of inflation. Over decades, the cost of living rises significantly.

At a 6% inflation rate, your current monthly expense of ₹40,000 will grow to ₹3,07,443 by the time you retire in 35 years. Your corpus must be large enough to support those inflated future expenses!

Frequently Asked Questions

Want to Reach Your Goal Faster?

Explore Step-up SIPs to start with a lower amount and increase it annually.

Step-Up SIP Calculator How to reach ₹1 Crore

For educational purposes only. Consult a financial advisor before investing.

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