Retirement Corpus Calculator
How much do you need to retire comfortably? Calculate your magic number with inflation and healthcare costs.
Your Profile
Assumptions
Retire at Different Ages
Warning: Post-retirement returns barely beat inflation. Consider safer but higher-yield options.
Explore More Financial Tools
Your Magic Number for Financial Freedom
How much money do you need to never work again? The answer isn't a random guess—it's a careful calculation based on your lifestyle, inflation, healthcare costs, and how long you expect to live. Get it wrong, and you risk running out of money in your 80s.
This calculator accounts for the silent killer—inflation. Your $4,000/month expenses today could become $10,000/month by the time you retire. Plan accordingly.
Retirement Corpus by Lifestyle
| Lifestyle | Monthly Expenses | At Retirement (30 yrs) | Corpus Needed |
|---|---|---|---|
| Basic | $2,000 | $8,600 | ~$1.5M |
| Comfortable | $4,000 | $17,300 | ~$3M |
| Affluent | $7,000 | $30,300 | ~$5.2M |
| Luxury | $12,000 | $51,900 | ~$8.9M |
Assumes 5% inflation, retire at 60, 25 years in retirement, 6% post-retirement return, 20% healthcare buffer.
Why Is the Corpus So High?
Key Concepts
The 4% Rule
Withdraw 4% annually from your corpus to make it last 30+ years. Corpus = Annual expenses × 25.
Real Rate of Return
Return minus inflation. 6% return with 5% inflation = only 1% real growth. Aim for 2%+ real rate.
Healthcare Buffer
Medical costs peak in your 80s. A 20-30% buffer prevents running out of money when you need it most.
Delay = Less Needed
Each year you delay retirement: more savings years, fewer withdrawal years. Retire at 65 vs 55 = 40% less corpus.
Calculator Features
Frequently Asked Questions
How much corpus do I need to retire?
It depends on your lifestyle, inflation, and retirement duration. Quick formula: Annual expenses at retirement × 25 (using 4% rule). But this calculator is more accurate—it accounts for: (1) Inflation from now until retirement. (2) Healthcare costs increasing faster than inflation. (3) Post-retirement investment returns. (4) Life expectancy beyond retirement. Example: $4,000/month expenses now, retire at 60, live to 85, 5% inflation → Corpus needed: ~$2-3M.
What is the 4% withdrawal rule?
The 4% rule (Trinity Study) suggests you can withdraw 4% of your retirement corpus annually and not run out of money for 30 years. How it works: Corpus of $1,000,000 × 4% = $40,000/year. Inverse: Annual need × 25 = Required corpus. $40,000 × 25 = $1,000,000. Limitations: Based on US market history. Assumes 50/50 stocks & bonds. 30-year horizon (may not cover 40+ year retirements). Doesn't account for healthcare inflation. Our calculator uses a more dynamic approach considering real rates of return.
Why do I need a healthcare buffer in retirement?
Healthcare costs increase faster than general inflation—typically 8-10% vs 5-6%. This means: At age 60: Medical expenses might be $500/month. At age 75: Could be $2,000+/month. At age 85: Could be $5,000+/month. A 20-30% healthcare buffer ensures you don't run out of money when medical expenses peak. Without it, many retirees face financial stress in their 80s. Also consider: Long-term care insurance or self-insurance fund for nursing care, which can cost $5,000-10,000/month.
What return should I assume for post-retirement investments?
Conservative is key—you can't recover from losses after retirement. Typical post-retirement allocation: 60% bonds/fixed income: 4-6% return. 30% large-cap stocks: 8-10% return (with volatility). 10% cash/liquid: 3-4%. Blended return: 5-7% is realistic. Why conservative? Market crash at age 65 can devastate retirement. You're withdrawing, not adding—no dollar-cost averaging. Sequence of returns risk: Bad early years hurt more. Our calculator uses 'real rate' (return minus inflation) which matters more than nominal.
Should I retire at 55, 60, or 65?
Each year you delay retirement has compounding benefits: More years of contributions. Fewer years of withdrawals. Social Security/pension may increase. Healthcare costs before Medicare (US) are expensive. Quick comparison (same lifestyle): Retire at 55: Need largest corpus, highest monthly SIP. Retire at 60: 25-30% less corpus needed. Retire at 65: 40-50% less corpus needed. Our calculator shows exact comparison for your situation. Balance financial readiness with life goals—money is a means, not the end.
What is the real rate of return in retirement?
Real rate = Nominal return - Inflation. If your investments earn 6% and inflation is 5%, real rate = 1%. This matters because: Your expenses grow with inflation. Your corpus must grow faster than inflation to maintain purchasing power. Formula: Real Rate = [(1 + Return) / (1 + Inflation)] - 1. Example: 6% return, 5% inflation: (1.06/1.05) - 1 = 0.95% real rate. If real rate is near 0 or negative, your corpus depletes faster than expected. Aim for at least 2% real rate.
How much should I save monthly for retirement?
Depends on your starting point and timeline. General rules: Start at 25: Save 10-15% of income. Start at 35: Save 20-25% of income. Start at 45: Save 35-40% of income. Our calculator tells you the exact SIP needed based on: Your current age and target retirement age. Existing savings and their growth. Required corpus for your lifestyle. The later you start, the more you need to save. Starting at 25 vs 35 can mean saving 50% less monthly for the same result.
What if I already have retirement savings?
Existing savings reduce your monthly SIP significantly. Our calculator does this automatically: (1) Takes your current savings. (2) Projects their future value at pre-retirement returns. (3) Calculates shortfall vs required corpus. (4) Determines SIP to cover the shortfall. Example: Need $1.5M corpus. Current savings $200K grows to $600K by retirement. Shortfall = $900K. SIP calculated for $900K, not full $1.5M. This is why early savings matter—more time to compound means less monthly strain.
What lifestyle expenses should I include?
Include all recurring expenses you expect in retirement: Essential: Housing (rent/property tax/maintenance), food, utilities, insurance, healthcare. Lifestyle: Travel, hobbies, dining, entertainment, gifts. Don't include: Work-related expenses (commute, work clothes). Mortgage payments (if paid off by retirement). Children's expenses (if independent). Many retirees spend 70-80% of pre-retirement expenses. But first few years often have higher travel/activity spending. Healthcare costs increase later.
What happens if I run out of money in retirement?
This is the worst-case scenario—'longevity risk.' Safety measures: (1) Plan to age 90+, not average life expectancy. (2) Keep 20-30% healthcare buffer. (3) Maintain some equities for growth (don't go 100% bonds). (4) Consider annuities for guaranteed income. (5) Delay Social Security/pension for higher payments. (6) Plan for part-time work option. (7) Have a 'Plan B' (downsize house, relocate to lower-cost area). Our calculator plans conservatively to prevent this scenario.