How Retirement Corpus is Calculated
The required retirement corpus uses the Present Value of Annuity formula, adjusted for inflation to find the real return:
Where Real Return = ((1 + Nominal Return) ÷ (1 + Inflation)) − 1. This accounts for the fact that your money also grows during retirement.
Frequently Asked Questions
A simple rule of thumb: 25–30 times your current annual expenses. But using an inflation-adjusted calculator (like this one) gives a precise figure based on your age, lifestyle, and expected returns.
The 4% rule says you can safely withdraw 4% of your retirement portfolio in Year 1 and adjust annually for inflation without running out of money over 30 years. This means a corpus of 25x your annual expenses.
Yes. EPF (Employee Provident Fund) is a key retirement asset in India. Include your current EPF balance in the "Current Retirement Savings" field to get an accurate picture of your readiness.