About Retirement Calculator

Planning for retirement is one of the most important financial goals in life. Our Retirement Calculator helps you calculate:

• The corpus you need to accumulate by retirement
• The monthly SIP required to reach your retirement goal
• The monthly pension you can expect during retirement
• The impact of inflation on your retirement expenses

How to use this calculator

1. Enter your current age and expected retirement age
2. Set your life expectancy
3. Enter your current monthly expenses
4. Adjust the inflation rate to account for rising costs
5. Set your expected pre-retirement and post-retirement investment returns
6. Enter your current retirement savings
7. Click "Calculate" to see your results

Understanding Retirement Planning

Retirement planning involves two distinct phases:

1. Accumulation Phase

This is the period from now until your retirement, during which you build your retirement corpus through regular investments. The key factors affecting this phase are:

• Time Horizon: The number of years until retirement
• Investment Returns: The rate at which your investments grow
• Regular Savings: The amount you set aside periodically

2. Distribution Phase

This is the period from retirement until the end of life, during which you withdraw from your retirement corpus to meet expenses. The key factors affecting this phase are:

• Retirement Duration: The number of years in retirement
• Post-Retirement Returns: The rate at which your corpus continues to grow
• Inflation: The rate at which your expenses increase
• Withdrawal Rate: The percentage of corpus withdrawn annually

Retirement Calculation Formula

The retirement corpus required is calculated using the following steps:

1. Calculate monthly expenses at retirement: Current Expenses × (1 + Inflation Rate)^Years to Retirement
2. Calculate annual expenses at retirement: Monthly Expenses × 12
3. Calculate corpus required: Annual Expenses × [(1 - (1 + Post-Retirement Return)^(-Retirement Duration)) / (Post-Retirement Return - Inflation Rate)]
4. Calculate SIP required: (Corpus - Future Value of Current Savings) / [(1 + Pre-Retirement Return)^Years to Retirement - 1) / Pre-Retirement Return × (1 + Pre-Retirement Return)]