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Here's How Much Money You Should Have When You Retire

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Created on
August 5, 2022


What’s Inside

Start planning for retirement in your 20s or 30s. Use free online tools like a retirement planning calculator or PF calculator to estimate how much money you will need. Remember to consider factors like inflation and life expectancy. Adjust your goals as necessary.

How Much Money Do You Need to Retire?

Here’s a step-by-step guide to help you understand the logic behind calculating how much money you should have when you retire.




Current age


30 years

Retirement age


55 years

Number of years left till you retire

55 minus 30

25 years

Life expectancy


85 years

Number of post-retirement years

85 minus 55

30 years

Expected rate of return


10% p.a.

Inflation rate 


6% p.a.

Inflation-adjusted rate of return 

[(1 + expected return rate) ÷ (1 + inflation rate)] — 1

3.77 % p.a.

Current annual expenses


Rs. 8,00,000

Inflation-adjusted annual expenses at retirement

Future value = Present value (1 + inflation rate)n

Where the present value is equal to the current annual expenses, and ‘n’ represents the number of years left till retirement (i.e. 25 years)

Rs. 34,33,497

Retirement corpus required 

Present value = 

Annual payment x [1 — {1 ÷ (1+ r)n}] ÷ r

Where the annual payment is the inflation-adjusted annual expense, ‘r’ is the inflation-adjusted return rate (i.e. 3.77 % p.a) and ‘n’ is the number of post-retirement years (i.e. 30 years)

Rs. 6,10,65,930.56

Investment Options for Retirement Planning

Once you know how much you need to save up for your retirement corpus, you need to diversify your portfolio across different investments. Some excellent options for this purpose include:

1. Employees’ Provident Fund

If you are a salaried employee, you may already be contributing to your PF account. You can use a PF calculator to compute how much your PF account balance may grow at the time of retirement.

2. Public Provident Fund

In addition to your EPF savings, you can also voluntarily contribute to your PPF account. You also get tax savings on your PPF investments each year. Use a PF calculator to check the total amount of money you can accumulate in your PPF account at retirement.

3. Mutual Funds

By diversifying your portfolio across different types of mutual funds like equity funds, debt funds and index funds, you can accelerate the process of wealth creation while simultaneously reducing the portfolio risk and preserving your capital.

4. Pension Plans

The best pension plans in India help you secure an alternate source of income after you retire and also offer a life cover to protect your family in case of your demise. The payouts from these plans can help you meet a part of your post-retirement annual expenses.

Accelerate Wealth Creation with Smart Investment Choices

If you are young and can take risks, consider mutual fund investments for long-term wealth creation. As a money management platform, Fi offers several investment options. Be it Short-term or Long-term — it's easy to invest with a simple swipe of your phone's screen. Fi also offers a Peer-to-Peer investment feature called Jump that helps beat inflation! Jump helps you earn up to 9% p.a on your investment. But if you want to save up for a short-term goal & earn interest on it, select our super-flexible Smart Deposit. If you're looking for higher/stable returns, opt for a Fixed Deposit.

Frequently Asked Questions

1. What is a good amount to have when I retire?

The amount you need to retire comfortably will depend on your current age, the age at which you wish to retire, your annual expenses and the inflation rate. You can compute the required corpus based on the above factors.

2. What is the best investment plan for retirement planning?

Some good investment plans for retirement planning in India include the Public Provident Fund, Employees’ Provident Fund and pension plans, among others.

3. What tools can I use for effective retirement planning?

You can use various free online tools like a retirement planning calculator and a PF calculator to effectively plan for your retirement.

4. What is the best pension plan in India?

Most leading insurers in India offer competitive pension plans. Compare the options available to find the best pension plan in India that’s suitable for your post-retirement financial needs.


Fi Money is not a bank; it offers banking services through licensed partners and investment services through epiFi Wealth Pvt. Ltd. and its partners. This post is for information only and is not professional financial advice.
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