# How Much Money Do I Need to Retire in India? > How much do you need to retire in India? Work out your corpus from today's expenses, see which assumptions change it most, and find the SIP to get there. Source: https://trykosh.com/learn/how-much-money-to-retire-in-india Guide - Retirement # How much money do you need to retire in India? The honest answer is a range, not a number, because it rests on assumptions about inflation, returns and how long you'll live. But the method is simple, and once you see which assumptions matter, you can plan with confidence. Updated 25 October 20266 min readBy the Kosh team On this page[The short answer](#short-answer)[Step 1: Start from today's expenses](#expenses)[Step 2: Inflate it to your retirement year](#inflate)[Step 3: Work out the corpus](#corpus)[Step 4: Subtract what you have, and find the SIP](#sip)[Which assumptions matter most](#assumptions)[Where the money usually comes from](#sources)[Edge cases and planning tips](#edge-cases)[FAQs](#faq) ## The short answer Roughly **22 to 30 times your yearly expenses in the year you retire**, depending on how long retirement lasts and what your money earns after you stop working. For a 32-year-old spending INR 60,000 a month today and retiring at 60, that works out to about **INR 8.24 crore**, at the assumptions below. That sounds enormous because it's in 2054 rupees; most of it is inflation. ## Step 1: Start from today's expenses Use what your household actually spends each month, from your statements. Then adjust for retirement: - **Leave out** EMIs that will end before you retire, work commuting, and savings you're making for retirement itself. - **Keep** groceries, utilities, household help, travel, support to family, and rent if you won't own a home. - **Add** a realistic health budget. Premiums rise steeply with age, and treatment not covered by insurance comes out of the corpus. In the example here: **INR 60,000 a month** in today's money. ## Step 2: Inflate it to your retirement year At 6% inflation, prices roughly double every 12 years. Over 28 years, from 32 to 60, INR 60,000 becomes **INR 3,06,701 a month**, about 5.1 times today's figure. This is the single biggest reason retirement numbers look so large. Try other rates in the [inflation calculator](/tools/inflation-calculator). ## Step 3: Work out the corpus The corpus has to pay that monthly amount, rising with inflation every year, for as long as you live. The [retirement calculator](/tools/retirement-calculator) assumes you plan until 85 and that the corpus earns 7% a year in retirement, invested mostly in safer options. That needs **INR 8,23,94,245**, about 22.4 times the first year's expenses. Here's how that corpus runs down. It grows in the early years of retirement because returns exceed withdrawals, then falls as rising expenses overtake it: INR 8.24 crore from age 60, at 7% return and 6% inflation Age Monthly spend Corpus at start of year 60 INR 3,06,701 INR 8.24 crore 65 INR 4,10,435 INR 9.02 crore 70 INR 5,49,255 INR 9.27 crore 75 INR 7,35,027 INR 8.46 crore 80 INR 9,83,632 INR 5.79 crore 84 INR 12,41,813 INR 1.49 crore ## Step 4: Subtract what you have, and find the SIP Retirement savings you already have keep growing. Say you have INR 10 lakh across EPF, PPF, NPS and funds earmarked for retirement. At an assumed 10% a year before retirement, that grows to **INR 1.44 crore** by 60. The gap is **INR 6,79,73,252**, which a SIP of **INR 36,825 a month** for 28 years at the same assumed 10% would cover. Starting from zero, the same plan needs about INR 44,638 a month. Every year of delay raises the monthly figure, and a SIP that steps up with your salary starts much lower; try the [step-up SIP calculator](/tools/step-up-sip-calculator). ### If the SIP looks impossible A number like INR 36,825 a month can feel out of reach in your early 30s. You have four levers, and most people use several: start smaller and raise the SIP every year with your salary; work a few years longer, which both adds saving years and shortens retirement; plan a lower spending level in retirement, for example by finishing the home loan first so there's no rent or EMI; and keep EPF and NPS contributions going, which count toward the same corpus. Recalculate once a year. The plan only has to be roughly right, and early. ## Which assumptions matter most Change one assumption at a time from the base case above and see what moves: Same person, one change at a time Scenario Corpus needed Monthly SIP Base: retire at 60, plan to 85, 7% after retirement INR 8.24 crore INR 36,825 Plan until 90 instead of 85 INR 9.67 crore INR 44,562 Earn 6% after retirement instead of 7% INR 9.2 crore INR 42,035 Retire at 55 instead of 60 INR 7.22 crore INR 58,904 Retiring five years early needs a smaller corpus in rupees (expenses have had less time to inflate) but a **60% bigger SIP**, because there are five fewer years to save and five more years to fund. Planning five more years of life adds about INR 1.4 crore, and a return 1% lower after retirement adds about INR 1 crore. When in doubt, plan long: running out at 82 is far worse than leaving something behind. ### A smaller example A 40-year-old in a smaller city spending INR 40,000 a month, with INR 20 lakh saved, needs about **INR 3.45 crore** by 60 at the same assumptions. Today's savings grow to INR 1.35 crore, and the gap needs a SIP of **INR 27,437 a month** for 20 years. ## Where the money usually comes from - **EPF:** 12% of basic from you and 12% from your employer (part of which goes to the pension scheme), earning 8.25% for FY 2025-26. For many salaried people it's the largest retirement asset. See the [EPF calculator](/tools/epf-calculator). - **PPF:** tax-free, currently 7.1%, up to INR 1.5 lakh a year. - **NPS:** market-linked; at 60, at least 20% buys an annuity and up to 80% can be taken as a lump sum, of which 60% of the corpus is tax-free. See [PPF vs ELSS vs NPS](/learn/ppf-vs-elss-vs-nps). - **Equity mutual funds:** the main growth engine over long periods, with market risk. - **Gratuity:** up to INR 20 lakh tax-free for private-sector employees, if you've been with one employer long enough to qualify. ## Edge cases and planning tips - **Health cover in retirement.** Buy your own health policy well before retiring, so waiting periods are over and you aren't relying on employer cover that ends. - **Rent vs owning.** If you'll rent in retirement, rent is the biggest line in the budget and must be inflated like everything else. - **Supporting others.** Children's higher education or a wedding late in your career can draw down retirement money. Plan those goals separately. - **Sequence risk.** A market fall in the first years of retirement hurts more than one later. Keep a few years of expenses in safer options as you near retirement. - **Withdrawing.** A [systematic withdrawal plan](/tools/swp-calculator) and annuities are two ways to turn a corpus into monthly income; many retirees use both. - **Retiring very early.** If you want to stop work in your 40s, look at the [FIRE calculator](/tools/fire-calculator): it targets a corpus of about 28.6 times yearly expenses at a 3.5% withdrawal rate. [Free tool**Retirement calculator**Find out how big a retirement corpus your lifestyle needs and what you must invest each month to get there. The calculator inflates today's expenses, funds them for every year of retirement, and credits the savings you already have.](/tools/retirement-calculator)[Free tool**FIRE calculator**FIRE stands for financial independence, retire early: having enough invested that work becomes optional. Enter your expenses and how much you invest to see your FIRE number and the age you could reach it.](/tools/fire-calculator)[Free tool**NPS calculator**Estimate what your National Pension System account could grow to, how it splits between lump sum and annuity at exit, and the monthly pension the annuity might pay. Returns and annuity rates are your assumptions.](/tools/nps-calculator)[Free tool**EPF calculator**Project your Employees' Provident Fund balance at retirement, with yearly raises, the employer's split between EPF and EPS, and any voluntary PF you add.](/tools/epf-calculator)[Free tool**SWP calculator**Plan a monthly income from your investments. Enter the corpus, the withdrawal, an assumed return and how long you want it to last.](/tools/swp-calculator)[Free tool**Inflation calculator**See how inflation changes the value of money, forwards or backwards. Find what something will cost in future, or what an old amount is worth today.](/tools/inflation-calculator) **Where Kosh fits** Kosh reads your bank, EPF and investment statements, works out what you really spend and already have, and keeps the retirement gap and monthly SIP up to date as life changes. It's an educational planning tool, not a SEBI-registered adviser, and never recommends specific funds. ## Frequently asked questions How much money do I need to retire in India? Roughly 22 to 30 times your yearly expenses in the year you retire, depending on how long you plan for and what the corpus earns. A 32-year-old spending INR 60,000 a month today would need about INR 8.24 crore at 60, assuming 6% inflation, 7% returns after retirement and planning until 85. Is INR 1 crore enough to retire in India? It depends on your expenses and when you retire. INR 1 crore can support modest spending if you're retiring soon with low costs, but for someone retiring decades from now, inflation means it will likely cover only a few years of expenses. How much should I invest monthly for retirement? Work out your target corpus, subtract what your existing savings will grow to, and find the SIP that fills the gap. In our example a 32-year-old with INR 10 lakh saved needs about INR 36,825 a month for 28 years at an assumed 10% return. What inflation rate should I assume for retirement planning? Many planners use about 6% for general expenses and more for healthcare and education. A higher inflation assumption makes the plan safer, because it raises the corpus you aim for. What is the 25x rule for retirement? It says you need about 25 times your annual expenses to retire, based on a 4% withdrawal rate from US research. Indian planners often use 3 to 3.5%, which means about 28 to 33 times, because inflation in India tends to be higher. Does EPF alone give enough for retirement? For most people, no. EPF is a strong base, but the corpus needed to cover 25 or more years of inflation-linked expenses is usually much larger than EPF alone, so other investments are needed alongside it. ## Sources - [EPFO](https://www.epfindia.gov.in/) - [PFRDA (NPS)](https://www.pfrda.org.in/) Written by the Kosh team and checked against the rules in force on 25 October 2026. This guide is general information, not tax, legal or investment advice. Kosh is an educational financial planning tool by Primedepth Labs. It is not a SEBI-registered investment adviser and does not offer personalised investment advice, hold your money or execute trades. Markets carry risk; read scheme documents carefully and consult a registered adviser before acting. ## Upload your statement and Kosh does this for you. Kosh reads your bank and card statements, works out your tax under both regimes and turns guides like this one into your own numbers and next steps. 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