Retirement planning sounds overwhelming, but it comes down to one calculation: how much money do you need such that your investments can fund your lifestyle indefinitely?
The 25x rule (or 4% rule)
The most widely used framework: multiply your annual expenses by 25. A portfolio of that size, invested conservatively at 7–8% returns, will fund your lifestyle forever (you withdraw 4% per year while the rest keeps growing).
| Monthly Expenses at Retirement | Annual Expenses | Retirement Corpus Needed |
|---|---|---|
| ₹30,000 | ₹3.6 Lakhs | ₹90 Lakhs |
| ₹50,000 | ₹6 Lakhs | ₹1.5 Crore |
| ₹75,000 | ₹9 Lakhs | ₹2.25 Crore |
| ₹1,00,000 | ₹12 Lakhs | ₹3 Crore |
Adjust for inflation
Your expenses in retirement will be higher than today due to inflation. At 6% inflation, ₹50,000/month today needs ₹90,000/month in 10 years. Factor this into your retirement corpus calculation — use our Retirement Calculator on the Finance Tools page.
Want to retire early? Read: FIRE movement for Indians and can you retire before 50.