How this retirement calculator works
Retirement planning comes down to two questions: how much will I need, and how do I get there? This calculator answers both in four steps.
- Your future expenses. It grows today’s monthly expenses by inflation until the year you retire. ₹50,000 a month today could be close to ₹2.9 lakh a month in 30 years at 6% inflation.
- The savings you’d need. It works out the amount that, invested at your post-retirement return, could pay those expenses every year until the age you plan for, with the income rising each year with inflation.
- What you already have. It grows your existing retirement savings at your pre-retirement return until you retire.
- The monthly SIP. It finds the SIP that would cover the gap.
A worked example
You’re 30, want to retire at 60, and plan for income until 85. You spend ₹50,000 a month today. You assume 6% inflation, a 12% return until retirement and 8% after.
| Item | Amount |
|---|---|
| Monthly expenses at 60, after inflation | ₹2,87,175 |
| Retirement savings needed at 60 | about ₹6.95 crore |
| Monthly SIP needed, starting now | about ₹22,600 |
₹6.95 crore sounds enormous, but it’s what 30 years of inflation does. It’s also about 20 times your first year of retirement expenses.
If you start at 40 instead of 30, the monthly SIP needed rises sharply. Time is the most powerful number in this calculator.
Getting the assumptions right
- Expenses. Use what you actually spend, not your income. Leave out costs that should end by retirement, like a home loan EMI or school fees, and add ones that may rise, like healthcare and travel.
- Inflation. 6% is a common choice for India. Test 7% to see how sensitive your plan is.
- Returns. Before retirement, a growth-led equity mix is typical for long horizons. After retirement, a more balanced mix usually means a lower assumed return.
- How long to plan for. People are living longer. Planning until 85 or 90 is safer than until 75.
Make the SIP easier with a step-up
If the monthly SIP looks out of reach, start with what you can and raise it every year as your income grows. A 10% yearly step-up can cut the starting SIP a lot. Try the step-up SIP calculator.
From savings to a monthly income
Reaching your number is half the plan. The other half is turning savings into a steady income without running out. A systematic withdrawal plan (SWP) does that, paying you every month while the rest stays invested. Test it with the SWP calculator.
You don’t have to wait until 60. Bridgit Second Income builds savings for about 10 years and then draws about 3.5% a year, for people who want their savings to pay them sooner, alongside or after their salary.
