Inflation vs Retirement Planning: Having a retirement corpus for a financially free retirement is important, but equally important is knowing what it should be for you. What is even more significant is to have an idea to reach there, assessing how inflation can impact your retirement goal and what should be a periodic or one-time investment to achieve that target?
If you earn Rs 30,000 to Rs 80,000 monthly, or if your expenses are in that range, how much retirement corpus may you require in your life?
What may be your lump sum, yearly, or monthly systematic investment plan (SIP) investment to achieve that target?
Get answers to these questions in this write-up.
Important factors for retirement corpus calculation
- Your current age
- Retirement age
- Life expectancy
- Current expenses
- Do you have some financial goals post retirement?
- Expenses at retirement
- Corpus required
- Pre-retirement investment return
- Post-retirement investment return
- Inflation rate
How to calculate retirement corpus
- The basic rule is to calculate the inflation-adjusted corpus as per your current expenses, assuming you will maintain the same lifestyle post retirement.
- But if you want an upgrade on your lifestyle, or if you have other financial goals post retirement, the amount will increase accordingly.
- To know for how long you require the corpus, you should know when you plan to retire and your life expectancy.
- Life expectancy can be gauged by assessing your current health, health history, lifestyle habits, family health history, etc.
- Another factor is how far you are from your retirement. If you have 30 years, you can gather a corpus with a much smaller amount compared to when you have 15 years to gather the same corpus.
- Inflation can’t be overlooked. Assuming that the prices of things will rise, your calculation should be based till the last year of your retirement. So, if you are 30 years old and expect to live till 80, expenses will be calculated with the inflation impact 50 years down the line.
What we will calculate
We will calculate the estimated corpus for individuals earning Rs 30,000-Rs 80,000 a month. We will also calculate the lump sum amount, yearly investment and monthly SIP investment required to reach that target.
- Here are our calculation conditions
- Current expenses – Rs 30,000-Rs 80,000
- Current age – 30 years
- Retirement age – 60 years
- Life expectancy – 80 years
- Current retirement corpus – 0
- Inflation – 6 per cent
- Pre-retirement return – 12 per cent
- Post-retirement return – 7 per cent
Retirement corpus, investment required for individuals earning Rs 30,000- Rs 39,000
| Current Monthly Expense | Current yearly monthly expense | Monthly expense at 60 | Yearly expense at 60 | Corpus required | Lump sum investment | Yearly investment | Monthly SIP investment |
| ₹ 30,000.00 | ₹ 3,60,000 | ₹ 1,72,304.74 | ₹ 20,67,656.82 | ₹ 3,78,79,538.49 | ₹ 12,64,340.35 | ₹ 1,40,142.71 | ₹ 12,294.67 |
| ₹ 31,000.00 | ₹ 3,72,000 | ₹ 1,78,048.23 | ₹ 21,36,578.72 | ₹ 3,91,42,189.78 | ₹ 13,06,485.03 | ₹ 1,44,814.13 | ₹ 12,704.49 |
| ₹ 32,000.00 | ₹ 3,84,000 | ₹ 1,83,791.72 | ₹ 22,05,500.61 | ₹ 4,04,04,841.06 | ₹ 13,48,629.71 | ₹ 1,49,485.56 | ₹ 13,114.31 |
| ₹ 33,000.00 | ₹ 3,96,000 | ₹ 1,89,535.21 | ₹ 22,74,422.50 | ₹ 4,16,67,492.34 | ₹ 13,90,774.39 | ₹ 1,54,156.98 | ₹ 13,524.13 |
| ₹ 34,000.00 | ₹ 4,08,000 | ₹ 1,95,278.70 | ₹ 23,43,344.40 | ₹ 4,29,30,143.63 | ₹ 14,32,919.07 | ₹ 1,58,828.41 | ₹ 13,933.96 |
| ₹ 35,000.00 | ₹ 4,20,000 | ₹ 2,01,022.19 | ₹ 24,12,266.29 | ₹ 4,41,92,794.91 | ₹ 14,75,063.74 | ₹ 1,63,499.83 | ₹ 14,343.78 |
| ₹ 36,000.00 | ₹ 4,32,000 | ₹ 2,06,765.68 | ₹ 24,81,188.19 | ₹ 4,54,55,446.19 | ₹ 15,17,208.42 | ₹ 1,68,171.25 | ₹ 14,753.60 |
| ₹ 37,000.00 | ₹ 4,44,000 | ₹ 2,12,509.17 | ₹ 25,50,110.08 | ₹ 4,67,18,097.48 | ₹ 15,59,353.10 | ₹ 1,72,842.68 | ₹ 15,163.42 |
| ₹ 38,000.00 | ₹ 4,56,000 | ₹ 2,18,252.66 | ₹ 26,19,031.97 | ₹ 4,79,80,748.76 | ₹ 16,01,497.78 | ₹ 1,77,514.10 | ₹ 15,573.24 |
| ₹ 39,000.00 | ₹ 4,68,000 | ₹ 2,23,996.16 | ₹ 26,87,953.87 | ₹ 4,92,43,400.04 | ₹ 16,43,642.46 | ₹ 1,82,185.52 | ₹ 15,983.07 |
Retirement corpus, investment required for individuals earning Rs 40,000- Rs 49,000
| Current Monthly Expense | Current yearly monthly expense | Monthly expense at 60 | Yearly expense at 60 | Corpus required | Lump sum investment | Yearly investment | Monthly SIP investment |
| ₹ 40,000.00 | ₹ 4,80,000 | ₹ 2,29,739.65 | ₹ 27,56,875.76 | ₹ 5,05,06,051.33 | ₹ 16,85,787.14 | ₹ 1,86,856.95 | ₹ 16,392.89 |
| ₹ 41,000.00 | ₹ 4,92,000 | ₹ 2,35,483.14 | ₹ 28,25,797.66 | ₹ 5,17,68,702.61 | ₹ 17,27,931.82 | ₹ 1,91,528.37 | ₹ 16,802.71 |
| ₹ 42,000.00 | ₹ 5,04,000 | ₹ 2,41,226.63 | ₹ 28,94,719.55 | ₹ 5,30,31,353.89 | ₹ 17,70,076.49 | ₹ 1,96,199.79 | ₹ 17,212.53 |
| ₹ 43,000.00 | ₹ 5,16,000 | ₹ 2,46,970.12 | ₹ 29,63,641.45 | ₹ 5,42,94,005.18 | ₹ 18,12,221.17 | ₹ 2,00,871.22 | ₹ 17,622.36 |
| ₹ 44,000.00 | ₹ 5,28,000 | ₹ 2,52,713.61 | ₹ 30,32,563.34 | ₹ 5,55,56,656.46 | ₹ 18,54,365.85 | ₹ 2,05,542.64 | ₹ 18,032.18 |
| ₹ 45,000.00 | ₹ 5,40,000 | ₹ 2,58,457.10 | ₹ 31,01,485.23 | ₹ 5,68,19,307.74 | ₹ 18,96,510.53 | ₹ 2,10,214.07 | ₹ 18,442.00 |
| ₹ 46,000.00 | ₹ 5,52,000 | ₹ 2,64,200.59 | ₹ 31,70,407.13 | ₹ 5,80,81,959.03 | ₹ 19,38,655.21 | ₹ 2,14,885.49 | ₹ 18,851.82 |
| ₹ 47,000.00 | ₹ 5,64,000 | ₹ 2,69,944.09 | ₹ 32,39,329.02 | ₹ 5,93,44,610.31 | ₹ 19,80,799.89 | ₹ 2,19,556.91 | ₹ 19,261.64 |
| ₹ 48,000.00 | ₹ 5,76,000 | ₹ 2,75,687.58 | ₹ 33,08,250.92 | ₹ 6,06,07,261.59 | ₹ 20,22,944.56 | ₹ 2,24,228.34 | ₹ 19,671.47 |
| ₹ 49,000.00 | ₹ 5,88,000 | ₹ 2,81,431.07 | ₹ 33,77,172.81 | ₹ 6,18,69,912.88 | ₹ 20,65,089.24 | ₹ 2,28,899.76 | ₹ 20,081.29 |
Retirement corpus, investment required for individuals earning Rs 50,000- Rs 59,000
| Current Monthly Expense | Current yearly monthly expense | Monthly expense at 60 | Yearly expense at 60 | Corpus required | Lump sum investment | Yearly investment | Monthly SIP investment |
| ₹ 50,000.00 | ₹ 6,00,000 | ₹ 2,87,174.56 | ₹ 34,46,094.70 | ₹ 6,31,32,564.16 | ₹ 21,07,233.92 | ₹ 2,33,571.18 | ₹ 20,491.11 |
| ₹ 51,000.00 | ₹ 6,12,000 | ₹ 2,92,918.05 | ₹ 35,15,016.60 | ₹ 6,43,95,215.44 | ₹ 21,49,378.60 | ₹ 2,38,242.61 | ₹ 20,900.93 |
| ₹ 52,000.00 | ₹ 6,24,000 | ₹ 2,98,661.54 | ₹ 35,83,938.49 | ₹ 6,56,57,866.72 | ₹ 21,91,523.28 | ₹ 2,42,914.03 | ₹ 21,310.76 |
| ₹ 53,000.00 | ₹ 6,36,000 | ₹ 3,04,405.03 | ₹ 36,52,860.39 | ₹ 6,69,20,518.01 | ₹ 22,33,667.96 | ₹ 2,47,585.46 | ₹ 21,720.58 |
| ₹ 54,000.00 | ₹ 6,48,000 | ₹ 3,10,148.52 | ₹ 37,21,782.28 | ₹ 6,81,83,169.29 | ₹ 22,75,812.63 | ₹ 2,52,256.88 | ₹ 22,130.40 |
| ₹ 55,000.00 | ₹ 6,60,000 | ₹ 3,15,892.01 | ₹ 37,90,704.17 | ₹ 6,94,45,820.57 | ₹ 23,17,957.31 | ₹ 2,56,928.30 | ₹ 22,540.22 |
| ₹ 56,000.00 | ₹ 6,72,000 | ₹ 3,21,635.51 | ₹ 38,59,626.07 | ₹ 7,07,08,471.86 | ₹ 23,60,101.99 | ₹ 2,61,599.73 | ₹ 22,950.04 |
| ₹ 57,000.00 | ₹ 6,84,000 | ₹ 3,27,379.00 | ₹ 39,28,547.96 | ₹ 7,19,71,123.14 | ₹ 24,02,246.67 | ₹ 2,66,271.15 | ₹ 23,359.87 |
| ₹ 58,000.00 | ₹ 6,96,000 | ₹ 3,33,122.49 | ₹ 39,97,469.86 | ₹ 7,32,33,774.42 | ₹ 24,44,391.35 | ₹ 2,70,942.57 | ₹ 23,769.69 |
| ₹ 59,000.00 | ₹ 7,08,000 | ₹ 3,38,865.98 | ₹ 40,66,391.75 | ₹ 7,44,96,425.71 | ₹ 24,86,536.03 | ₹ 2,75,614.00 | ₹ 24,179.51 |
Retirement corpus, investment required for individuals earning Rs 60,000- Rs 69,000
| Current Monthly Expense | Current yearly monthly expense | Monthly expense at 60 | Yearly expense at 60 | Corpus required | Lump sum investment | Yearly investment | Monthly SIP investment |
| ₹ 60,000.00 | ₹ 7,20,000 | ₹ 3,44,609.47 | ₹ 41,35,313.64 | ₹ 7,57,59,076.99 | ₹ 25,28,680.70 | ₹ 2,80,285.42 | ₹ 24,589.33 |
| ₹ 61,000.00 | ₹ 7,32,000 | ₹ 3,50,352.96 | ₹ 42,04,235.54 | ₹ 7,70,21,728.27 | ₹ 25,70,825.38 | ₹ 2,84,956.84 | ₹ 24,999.16 |
| ₹ 62,000.00 | ₹ 7,44,000 | ₹ 3,56,096.45 | ₹ 42,73,157.43 | ₹ 7,82,84,379.56 | ₹ 26,12,970.06 | ₹ 2,89,628.27 | ₹ 25,408.98 |
| ₹ 63,000.00 | ₹ 7,56,000 | ₹ 3,61,839.94 | ₹ 43,42,079.33 | ₹ 7,95,47,030.84 | ₹ 26,55,114.74 | ₹ 2,94,299.69 | ₹ 25,818.80 |
| ₹ 64,000.00 | ₹ 7,68,000 | ₹ 3,67,583.44 | ₹ 44,11,001.22 | ₹ 8,08,09,682.12 | ₹ 26,97,259.42 | ₹ 2,98,971.12 | ₹ 26,228.62 |
| ₹ 65,000.00 | ₹ 7,80,000 | ₹ 3,73,326.93 | ₹ 44,79,923.11 | ₹ 8,20,72,333.41 | ₹ 27,39,404.10 | ₹ 3,03,642.54 | ₹ 26,638.44 |
| ₹ 66,000.00 | ₹ 7,92,000 | ₹ 3,79,070.42 | ₹ 45,48,845.01 | ₹ 8,33,34,984.69 | ₹ 27,81,548.78 | ₹ 3,08,313.96 | ₹ 27,048.27 |
| ₹ 67,000.00 | ₹ 8,04,000 | ₹ 3,84,813.91 | ₹ 46,17,766.90 | ₹ 8,45,97,635.97 | ₹ 28,23,693.45 | ₹ 3,12,985.39 | ₹ 27,458.09 |
| ₹ 68,000.00 | ₹ 8,16,000 | ₹ 3,90,557.40 | ₹ 46,86,688.80 | ₹ 8,58,60,287.26 | ₹ 28,65,838.13 | ₹ 3,17,656.81 | ₹ 27,867.91 |
| ₹ 69,000.00 | ₹ 8,28,000 | ₹ 3,96,300.89 | ₹ 47,55,610.69 | ₹ 8,71,22,938.54 | ₹ 29,07,982.81 | ₹ 3,22,328.23 | ₹ 28,277.73 |
Retirement corpus, investment required for individuals earning Rs 70,000- Rs 80,000
| Current Monthly Expense | Current yearly monthly expense | Monthly expense at 60 | Yearly expense at 60 | Corpus required | Lump sum investment | Yearly investment | Monthly SIP investment |
| ₹ 70,000.00 | ₹ 8,40,000 | ₹ 4,02,044.38 | ₹ 48,24,532.59 | ₹ 8,83,85,589.82 | ₹ 29,50,127.49 | ₹ 3,26,999.66 | ₹ 28,687.56 |
| ₹ 71,000.00 | ₹ 8,52,000 | ₹ 4,07,787.87 | ₹ 48,93,454.48 | ₹ 8,96,48,241.10 | ₹ 29,92,272.17 | ₹ 3,31,671.08 | ₹ 29,097.38 |
| ₹ 72,000.00 | ₹ 8,64,000 | ₹ 4,13,531.36 | ₹ 49,62,376.37 | ₹ 9,09,10,892.39 | ₹ 30,34,416.85 | ₹ 3,36,342.51 | ₹ 29,507.20 |
| ₹ 73,000.00 | ₹ 8,76,000 | ₹ 4,19,274.86 | ₹ 50,31,298.27 | ₹ 9,21,73,543.67 | ₹ 30,76,561.52 | ₹ 3,41,013.93 | ₹ 29,917.02 |
| ₹ 74,000.00 | ₹ 8,88,000 | ₹ 4,25,018.35 | ₹ 51,00,220.16 | ₹ 9,34,36,194.95 | ₹ 31,18,706.20 | ₹ 3,45,685.35 | ₹ 30,326.84 |
| ₹ 75,000.00 | ₹ 9,00,000 | ₹ 4,30,761.84 | ₹ 51,69,142.06 | ₹ 9,46,98,846.24 | ₹ 31,60,850.88 | ₹ 3,50,356.78 | ₹ 30,736.67 |
| ₹ 76,000.00 | ₹ 9,12,000 | ₹ 4,36,505.33 | ₹ 52,38,063.95 | ₹ 9,59,61,497.52 | ₹ 32,02,995.56 | ₹ 3,55,028.20 | ₹ 31,146.49 |
| ₹ 77,000.00 | ₹ 9,24,000 | ₹ 4,42,248.82 | ₹ 53,06,985.84 | ₹ 9,72,24,148.80 | ₹ 32,45,140.24 | ₹ 3,59,699.62 | ₹ 31,556.31 |
| ₹ 78,000.00 | ₹ 9,36,000 | ₹ 4,47,992.31 | ₹ 53,75,907.74 | ₹ 9,84,86,800.09 | ₹ 32,87,284.92 | ₹ 3,64,371.05 | ₹ 31,966.13 |
| ₹ 79,000.00 | ₹ 9,48,000 | ₹ 4,53,735.80 | ₹ 54,44,829.63 | ₹ 9,97,49,451.37 | ₹ 33,29,429.59 | ₹ 3,69,042.47 | ₹ 32,375.96 |
| ₹ 80,000.00 | ₹ 9,60,000 | ₹ 4,59,479.29 | ₹ 55,13,751.53 | ₹ 10,10,12,102.65 | ₹ 33,71,574.27 | ₹ 3,73,713.89 | ₹ 32,785.78 |
(Disclaimer: This is not investment advice. Do your own due diligence or consult an expert for financial planning.)