Start with the End Number
Retirement planning works backwards: estimate the annual income you will need after you stop working, then figure out the corpus that can sustain it, and finally the monthly investment to build that corpus.
Inflation is the silent factor — the cost of living decades from now will be far higher than today, so your target must account for it.
Step-by-Step Guide
Plan your retirement in four moves:
Estimate future expenses
Take your current annual expenses and grow them by inflation to your retirement age. This is the yearly income you'll need.
Size the corpus
A common rule of thumb is a corpus large enough that a safe withdrawal (often around 4% a year) covers your needs.
Count your time
The years until retirement decide how hard your money must work. More time means smaller monthly investments.
Set a monthly SIP
With a target and horizon, calculate the monthly amount and step it up as income rises.
Project your corpus
Use the SIP Calculator to estimate how monthly investing builds toward your retirement target.
Open SIP Calculator →Staying on Track
Retirement planning is a long game — protect it:
- Start as early as possible: the first decade of compounding is the most powerful.
- Account for inflation: plan in future rupees, not today's.
- Don't raid it: avoid dipping into retirement savings for short-term wants.
- Review periodically: revisit the plan every few years and adjust for life changes.
Frequently Asked Questions
How much do I need to retire?
It depends on your expected expenses and lifestyle. Estimate future annual costs, then build a corpus that can sustain them with a safe withdrawal rate.
When should I start?
As early as you can. Because of compounding, starting even a few years sooner sharply reduces the monthly amount needed.
Is this financial advice?
No. This article is for general education only. For decisions specific to your situation, speak to a SEBI-registered advisor or a qualified professional.
Disclaimer: This guide is for general educational purposes only and is not financial advice. Please consult a qualified financial advisor before making investment, tax or borrowing decisions.