How Much Do You Need for Retirement?

Most of us will spend 20 to 30 years in retirement, and prices keep rising throughout. Estimating your target corpus is the first step to a plan that works.

Step 1: Today's monthly expenses

Start with what you spend today and remove costs that will end, such as EMIs and children's school fees.

Step 2: Allow for inflation

At 6% inflation, ₹40,000 of monthly expenses today becomes about ₹1.72 lakh a month in 25 years. This is the single biggest factor people underestimate.

Step 3: How long retirement lasts

Plan for a long life, at least to 85. Your savings must keep paying out, and keep growing a little, throughout.

Step 4: The corpus

For someone aged 35 who plans to retire at 60, with ₹40,000 of monthly expenses today, 6% inflation and a 7% return after retirement, the corpus needed at 60 could be around ₹4.6 crore. That figure surprises most people, which is why starting early matters so much.

Step 5: Close the gap

Subtract what your existing savings may grow to, then work out the monthly investment needed for the rest. Our retirement calculator does all five steps for you.

Do not forget

• Health insurance that continues after your employer's cover ends.
• An emergency fund, separate from your retirement corpus.
• A plan for a regular income, such as a systematic withdrawal plan.

These examples are estimates based on assumptions; actual returns and costs will vary. Read more about retirement planning.