Retirement Savings Calculator — Plan Your Future

A common guideline is to save 15-20% of your gross income for retirement, starting as early as possible. By age 30, aim to have 1x your annual salary saved; by 40, 3x; by 50, 6x; and by retirement (65-67), 10-12x your annual salary. However, the exact amount depends on your desired lifestyle, expected expenses, healthcare costs, and when you plan to retire.

The 4% rule is a retirement spending guideline that says you can safely withdraw 4% of your retirement savings in the first year of retirement, then adjust that amount for inflation each subsequent year. For example, if you have Rs. 1 crore saved, you can withdraw Rs. 4 lakhs in year one. This rule is designed to make your savings last at least 30 years in retirement.

Start by contributing to any employer-matched retirement accounts — that is essentially free money. Then open a PPF, NPS, or mutual fund SIP account. Automate your contributions so they happen before you can spend the money. Increase your savings rate by at least 1% each year. Invest in a diversified portfolio appropriate for your age — generally more stocks when young, gradually shifting to bonds as you near retirement.

A good retirement corpus depends on your expected annual expenses in retirement and how many years you expect to be retired. A simple formula is: Annual Expenses x 25 (based on the 4% rule). For example, if you need Rs. 5 lakhs per year in retirement, you would need approximately Rs. 1.25 crore. Factor in inflation, healthcare costs, and any pension or social security income you may receive.