Project your retirement corpus and how long it lasts.
Project required retirement corpus, inflation-adjusted expenses, and calculate how many years your savings nest egg will last.
Accumulates existing savings and monthly contributions until retirement age, then simulates inflation-adjusted monthly withdrawals.
Inflation continuously erodes purchasing power. A monthly budget of ₹60,000 today at 6% annual inflation escalates to over ₹1.9 Lakhs per month in 20 years.
To maintain financial independence, target a retirement corpus equal to at least 25 times your expected annual post-retirement expenses.
Gradually shift capital from high-beta equity funds into fixed-income instruments like senior citizen schemes, SWPs, and debt FDs to preserve capital.
Target a corpus that covers 25-30 years of inflated monthly expenses, keeping in mind health insurance and emergency contingency funds.
Assuming a 6% to 7% annual inflation rate is prudent for long-term retirement calculations in India.
FIRE (Financial Independence, Retire Early) advocates saving 50%+ of income to accumulate 25x-30x annual expenses and retire decades before 60.