How it is worked out
Your monthly expenses grow with inflation until you retire. The fund you need at retirement must pay those expenses, still rising with inflation, until the age you plan up to, while the rest stays invested at the after-retirement return.
The monthly saving is what, together with your savings so far, grows to that fund by your retirement age. With a step-up, you start lower and raise the amount each year.
FIRE (financial independence, retire early) often uses 25 times a year's expenses (the 4% rule from US studies). Because Indian inflation is higher, many planners suggest 30–33 times for India.Typical returns
- PPF: 7.1% (July–September 2026), tax-free, 15-year lock-in, up to ₹1.5 lakh a year.
- EPF: 8.25% for 2025-26, from your salary and your employer's share.
- NPS: market-linked; mixes of equity and bonds have returned roughly 9–11% a year.
- Equity mutual funds: about 11–12% over long periods, with years of losses along the way.
Frequently asked questions
Is this financial advice?
No. It is a planning estimate. Returns are not guaranteed; a SEBI-registered adviser can plan with your full situation.
What about health costs?
Medical costs usually rise faster than general inflation. Keep separate health insurance and add a buffer to your monthly expenses.