Finance
How retirement planning actually works (the simple version)
Three numbers decide your retirement: target corpus, time horizon, and expected return. Here’s how to estimate each.
The retirement equation
Required corpus ≈ 25× your annual post-retirement expenses (the 4% rule).
If you spend ₹6L/year in retirement, you need ₹1.5Cr today’s purchasing power.
Adjusting for inflation
At 6% inflation, ₹6L today becomes ₹19L in 20 years. Your required corpus must grow accordingly.
The compounding lever
₹20k/month at 12% for 25 years = ~₹3.8Cr.
₹20k/month at 12% for 35 years = ~₹13Cr.
Time matters more than amount.
The three knobs
- Save more (highest leverage early in career).
- Invest better (target 11–14% via diversified equity).
- Retire later (delaying by 5 years can 2x your corpus).
Use the Elevatools Wealth Simulator to see your specific curve.
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