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Retirement Reality Check

Two questions, one tool: will you get there, and will the money last?

How to use this tool
  1. “Getting there” shows how close your savings could take you. “Making it last” shows how long a sum of money could last once you stop working.
  2. Rough figures are fine. Add a pension, rent, or money you expect later, like EPF or gratuity, if you have them.
  3. Try a later retirement age or lower spending to see what changes.
  4. Tap “See how long it could last” to follow your money year by year.

a month

Skip it if you’re unsure.

Optional. EPF, gratuity, shares or a property sale you expect.

a month

a month

Optional. A monthly amount, in today’s money.

10%

What a well-allocated portfolio is usually planned around over the long run. Where you sit in this range depends on your risk profile.

Nothing you enter here is saved or stored. This is just for you to explore.

You’re roughly

30%

of the way to a comfortable retirement corpus.

What your savings could grow to by 60
₹1.81 Cr
About ₹56.44 L in today’s money.
A comfortable corpus at 60
₹5.77 Cr
That is about 25 times a year of the spending you’d have at 60. With prices rising 6% a year, ₹60,000 a month today becomes about ₹1,92,400 a month by then. In today’s money, the corpus is about ₹1.8 Cr. It is a rough yardstick, not your number.
The gap
₹3.96 Cr
About ₹1.24 Cr in today’s money.
To close it, put aside about ₹55,000 a month more, on top of your ₹25,000, or start with about ₹26,000 more and raise it 10% every year.

A reality check

  • At what you spend, about ₹1,92,400 a month by 60 and rising with prices, what you are on track for could last until about 68.
  • Retiring at 65 instead could bring you to about 40% of the way; spending 20% less in retirement, about 40%.
  • What you are on track for could pay about ₹77,400 a month from 60 to 85, raised with prices every year. That is about ₹24,100 a month in today’s money.

The income assumes 8% a year after you retire. Ballparks, not the final answer.

How these figures are worked out

What your savings could grow to. ₹25,000 a month, each month’s money going in at the start of the month, growing at 10% a year until 60.

10% a year works out to about 0.797% a month: growing by that every month for 12 months makes 10% in a year.

  • Month 1: ₹25,000 goes in, and grows to ₹25,199 by the month’s end.
  • Month 2: another ₹25,000 goes in, making ₹50,199, which grows to ₹50,600.
  • And so on, every month. The table shows where it stands at the end of each year.
From 40 to 60, at 10% a year
YearPut in so farWorth at the end
1₹3,00,000₹3,16,013
2₹6,00,000₹6,63,628
3₹9,00,000₹10,46,004
4₹12,00,000₹14,66,618
5₹15,00,000₹19,29,294
6₹18,00,000₹24,38,236
7₹21,00,000₹29,98,073
8₹24,00,000₹36,13,894
9₹27,00,000₹42,91,297
10₹30,00,000₹50,36,440
11₹33,00,000₹58,56,097
12₹36,00,000₹67,57,721
13₹39,00,000₹77,49,506
14₹42,00,000₹88,40,470
15₹45,00,000₹1,00,40,530
16₹48,00,000₹1,13,60,597
17₹51,00,000₹1,28,12,670
18₹54,00,000₹1,44,09,950
19₹57,00,000₹1,61,66,959
20₹60,00,000₹1,80,99,668

In year 1, ₹3,00,000 went in but grew only about ₹16,013. Each month’s money is invested for just part of the year (the first month’s for 12 months, the last month’s for 1). From year 2, the whole amount grows all year, so growth speeds up.

Your spending at 60. With prices rising 6% a year for 20 years, a price multiplies by 1.06 × 1.06 × … (20 times) = 3.2071. So ₹60,000 × 3.2071 = about ₹1,92,428 a month.

A comfortable corpus. ₹1,92,428 × 12 months × 25 = about ₹5,77,28,438. In today’s money, divide by 3.2071: about ₹1,80,00,000.

The gap, and closing it. ₹5,77,28,438 − ₹1,80,99,668 = about ₹3,96,28,770. Putting aside ₹54,737 a month more, the same way, could build that by 60: rounded up, ₹55,000. Started smaller and raised 10% every year, ₹25,630 a month in the first year could build it: rounded up, ₹26,000.

How long it could last. ₹1,80,99,668, with ₹1,92,428 a month taken out in the first year of retirement and 6% more each year after, while the rest earns 8% a year, could run out at about 68. “See how long it could last” shows it year by year.

What it could pay. ₹1,80,99,668, paying ₹77,400 a month in the first year of retirement and 6% more each year after, while the rest earns 8% a year, could last until 85. In today’s money, the first year’s ₹77,400 a month is about ₹24,134.

₹1.81 Cr from 60 to 85, at 8% a year
AgeSpentLeft at the end
60₹9,28,800₹1,85,79,067
61₹9,84,528₹1,90,38,703
62₹10,43,600₹1,94,73,508
63₹11,06,216₹1,98,77,801
64₹11,72,589₹2,02,45,222
65₹12,42,944₹2,05,68,668
66₹13,17,521₹2,08,40,219
67₹13,96,572₹2,10,51,059
68₹14,80,366₹2,11,91,382
69₹15,69,188₹2,12,50,306
70₹16,63,339₹2,12,15,760
71₹17,63,140₹2,10,74,377
72₹18,68,928₹2,08,11,364
73₹19,81,064₹2,04,10,373
74₹20,99,928₹1,98,53,348
75₹22,25,923₹1,91,20,370
76₹23,59,479₹1,81,89,479
77₹25,01,047₹1,70,36,486
78₹26,51,110₹1,56,34,763
79₹28,10,177₹1,39,55,025
80₹29,78,787₹1,19,65,076
81₹31,57,515₹96,29,551
82₹33,46,966₹69,09,619
83₹35,47,783₹37,62,676
84₹37,60,650₹1,41,994

Worked out in full and shown rounded (the multipliers to four decimal places, money to the rupee), so a sum done by hand can differ slightly. An illustration to help you think, not a promise.

Living costs are assumed to rise 6% a year. These are general illustrations to help you think, not advice for your situation and not a promise. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Want a closer look at your own numbers, and a way to close the gap? Talk to VMF.

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