How Retirement Readiness Works
This calculator estimates your retirement corpus need based on current expenses adjusted for inflation, then compares it with your projected savings to give you a readiness score (0-100). It also calculates the monthly SIP needed to bridge any gap.
Formula
Required Corpus = (Annual Expenses × Years in Retirement) / (1 + Return Rate)
Future Expenses = Current Expenses × (1 + Inflation)^Years
Readiness Score = (Projected Corpus / Required Corpus) × 100Retirement Planning Rules of Thumb
- •25x Rule: Save 25-30 times your annual expenses for retirement
- •4% Withdrawal Rule: Withdraw 4% of corpus annually to make it last 25-30 years
- •Start Early: Starting at 25 vs 35 can reduce required monthly SIP by 50%+
- •Inflation: Use 6-7% inflation for India; healthcare inflation is higher (8-10%)
What to Include in Your Corpus
Include: EPF, PPF, NPS, mutual funds, stocks, bonds, real estate (if selling), gold, and any other retirement-earmarked investments.
Exclude: Emergency fund, children's education fund, house you'll live in, and any assets not meant for retirement.
Post-Retirement Income: Include pension, rental income, annuity, or part-time work income. This reduces the corpus you need.
Common questions
What is a good retirement readiness score?
A score of 80+ means you're on track for a comfortable retirement. 60-80 means you need to increase savings. Below 60 means significant action is needed to avoid a retirement shortfall.
How much corpus do I need for retirement?
A common rule of thumb is 25-30 times your annual expenses. If you need ₹50,000/month (₹6 lakh/year), you need ₹1.5-1.8 crore corpus, adjusted for inflation.
Should I include EPF and PPF in existing corpus?
Yes. Include all retirement savings: EPF, PPF, NPS, mutual funds, real estate (if you plan to sell), and any other investments earmarked for retirement.
What return should I assume?
For long-term retirement planning, 10-12% is common for equity-heavy portfolios. Use 8-10% for balanced portfolios and 6-8% for conservative debt-heavy portfolios.
What about post-retirement income?
Include pension, rental income, annuity payments, or any other guaranteed income streams. This reduces the corpus you need to accumulate.
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Request a calculator →Disclaimer: Retirement planning is complex and depends on many factors. This calculator provides estimates only. Actual inflation, returns, and expenses will vary. Consult a certified financial planner for personalized retirement advice.
Last updated: May 2026