How to use the Retirement Planner

1. Enter your age today, the age you want to retire, and the age you want your money to last till.
2. Add your monthly household expenses today. Leave out EMIs that will end before you retire.
3. Enter any money you have already set aside for retirement.
4. Check the three assumptions: inflation, return before retirement and return after retirement. Change them to see a range.
5. Read your result: expenses at retirement, the fund you need, and the monthly saving.

What the numbers mean

Your corpus is the fund you need on retirement day. It pays your bills for every year after.

Prices rise every year, so today’s expenses will cost much more later. The planner uses 6% inflation as a moderate example.

There are two return assumptions. Before retirement, money usually has many years to grow. After retirement, most people keep it safer, so the planner assumes a lower return.

After retiring, the planner takes out one year’s expenses at the start of each year, raised for inflation. Every return is an assumption, not a guarantee.

Worked example

Suresh is 30. His family spends ₹40,000 a month. He wants to retire at 60 and plan till 85. He has ₹2 lakh saved.

At an assumed 6% inflation, his ₹40,000 grows to about ₹2,29,740 a month by age 60.

With an assumed 7% return after retirement, he needs about ₹6.17 crore on his retirement day.

His ₹2 lakh could grow to about ₹34.9 lakh by 60, at an assumed 10% a year. To fill the rest, he would save about ₹25,759 a month.

Small changes help. Retiring at 62 instead brings it down to about ₹21,599 a month.

Why starting early helps so much

Suppose Suresh waits ten years and starts saving at 40. His target stays the same.

Now he would need about ₹76,681 a month, nearly three times as much. In total, he would put in about ₹1.84 crore instead of ₹92.7 lakh.

Time does the heavy lifting. Even a small start today, raised a little each year, helps a lot.

Plan shorter goals in the Goal Planner.

Questions people ask

The amount I need looks huge. Is that normal?

Yes. It is in future rupees, after decades of rising prices. Focus on the monthly saving. Try a later retirement age to compare.

Which return should I enter?

There is no correct number. Try a cautious and a hopeful rate, and plan with the cautious one. For actual investment choices, speak to a SEBI-registered investment adviser.

How often should I recheck my plan?

Once a year, or when your income or expenses change a lot. See how rising prices work in the ₹ Time Machine.

This content is for general education only and is not financial, investment, tax or legal advice. Please consult a qualified professional before making financial decisions.