How Much Do You Need to Retire?
A step-by-step way to estimate your retirement corpus, with inflation, the 25x rule and a worked example in rupees.
Retirement planning can start with one question: how much money must you have so that withdrawals cover your expenses for the rest of your life? A simple estimate takes three steps.
Step 1: Project your expenses at retirement
Inflate today's monthly expenses to your retirement year. At 6% inflation, ₹50,000 a month today becomes about ₹2.15 lakh a month after 25 years. See the inflation guide for the formula.
Step 2: Apply a withdrawal rule
A common rule of thumb is to hold about 25 times your first-year annual expenses, which corresponds to withdrawing roughly 4% a year. Annual expenses of about ₹25.75 lakh (₹2.15 lakh × 12) imply a corpus of roughly ₹6.4 crore. The 4% rule comes from studies in other markets, and Indian inflation and returns differ, so many planners use a more cautious figure.
Step 3: Work backwards to a monthly SIP
Use the SIP calculator with your years to retirement and an assumed return. Try different amounts and the step-up option. For example, a flat ₹15,000 a month for 25 years at an assumed 12% reaches about ₹2.8 crore, well short of ₹6.4 crore, which shows why a rising SIP matters; see the step-up SIP guide.
Using the money
In retirement you can draw an income with a systematic withdrawal plan while the rest stays invested. Add NPS and EPF to your calculation, and keep health insurance in place.
Keep it flexible
Review the estimate each year. Returns, inflation, your lifestyle and the retirement age you choose all change the answer. Treat these numbers as planning aids, not forecasts.
Educational content, not retirement or investment advice.
Frequently asked questions
Is the 4% rule right for India?
It is a rough guide from other markets. Higher inflation in India means many planners use a lower starting withdrawal rate.
When should I start planning for retirement?
As early as possible. Starting ten years earlier needs a far smaller monthly amount for the same corpus.
More guides
Calculators
Last reviewed: October 2026. General education, not financial advice.