How Much Should You Save for Retirement in India?

Wondering how much you need to retire in India? Learn how to calculate your retirement corpus, adjust for inflation, and start saving smartly today.

💬 Introduction: Retirement Isn’t an Age, It’s a Number

Retirement planning isn’t just about stopping work at 60—it’s about having enough money to live life on your own terms, without financial stress.

So the million-rupee question is:

How much should you save to retire comfortably in India?

In this blog, we’ll help you calculate your ideal retirement corpus, tailored to your needs, lifestyle, and inflation.

1. 

Understand Your Future Expenses

Start by estimating what your monthly expenses will look like in retirement. This includes:

• Food, rent/maintenance
• Utilities, internet, phone bills
• Health insurance premiums
• Medicine & healthcare
• Leisure, travel, gifting
• Emergency buffer

Tip: Assume you’ll spend 70–80% of your current monthly expenses post-retirement.

2. 

Adjust for Inflation

Your ₹40,000 monthly expense today won’t be the same in 20 years.

Assuming 6% inflation, here’s how expenses grow:

Inflation is the silent killer of retirement plans. Always factor it in.

3. 

Calculate Your Retirement Corpus

Here’s a simple method:

1. Calculate your annual expenses at retirement
2. Multiply that by 25–30 (standard rule of thumb)

Example:

• Expenses at retirement = ₹12 lakh/year
• Retirement corpus = ₹12L × 25 = ₹3 crore

This ensures your investments can generate safe returns to sustain expenses for 25–30 years.

4. 

The 4% Rule: Sustainable Withdrawal

Once you retire, you’ll begin withdrawing from your savings.

The 4% Rule says you can withdraw 4% of your retirement corpus annually without running out of money.

So, if your corpus is ₹2 crore:

• Yearly withdrawal: ₹8 lakh
• Monthly income: ₹66,000

This approach is conservative, safe, and inflation-resistant—if your investments continue to grow post-retirement.

5. 

How Much Should You Save Monthly?

Here’s a general idea of monthly SIPs required to reach ₹2 Cr corpus:

The earlier you start, the smaller the burden.

6. 

Tools to Help You Calculate

You can use:

• SBI or HDFC Retirement Calculators
• Groww or ET Money app corpus estimators
• Excel-based retirement projection sheets
• Consult a fee-only financial planner for personalized planning

✅ Retirement Savings Checklist

• Future expenses estimated with inflation
• 4% Rule used to calculate target corpus
• SIP or investment plan started
• Separate medical and emergency fund planned
• Annual review of plan in place

✍️ Conclusion: Start Today, Retire Free Tomorrow

No matter your age, starting today is better than waiting for the “right time.” A well-planned retirement fund gives you the freedom to live without fear of medical emergencies, rising costs, or dependency.

Even ₹5,000/month can make a difference if started early.

Start small, stay consistent, and let compounding do the heavy lifting.