How Much Money Do You Need to Retire in India? A Simple Way to Work It Out

"How much is enough?" is the first retirement question. You can work out a sensible number in four steps.

1. Today's monthly expenses

Use what your household actually spends, not what you earn. Leave out EMIs that will end before retirement.

2. Expenses at retirement

Prices rise every year. At 6% inflation, ₹50,000 a month today becomes about ₹2.15 lakh a month in 25 years.

3. The fund needed

Your fund must pay those expenses, rising with inflation, for every year of retirement. With a 7% return after retirement and 6% inflation, 25 years of ₹2.15 lakh a month needs a fund of roughly ₹5.8 crore. Pension or rent reduces this.

4. The gap and the SIP

Grow your current savings and monthly investments to the retirement date. The difference from the fund needed is your gap; a monthly SIP from today can close it.

Don't forget

• Health insurance that continues after retirement
• An emergency fund and a simple will
• Nominees in every account

The Retirement & Pension Planner does this with your own numbers and shows the year-by-year picture. Try returns quickly with the SIP calculator.

Estimates for planning, not investment advice. Returns are not guaranteed.