Start with today's expenses
List the expenses you expect to continue during retirement. Housing, food, healthcare, transportation and lifestyle expenses can all matter.
Account for inflation
Your future retirement expenses are likely to be different from today's expenses. Use an assumed inflation rate to estimate how today's spending may change over your time horizon.
Consider the retirement horizon
Estimate when you expect to retire and how long the retirement period might last. A longer retirement horizon generally means a longer period for which your corpus may need to support withdrawals.
Estimate your savings requirement
Your required savings depends on your starting corpus, future contributions, assumed investment return, inflation and withdrawal pattern. These are assumptions, not guarantees.
Review regularly
Retirement planning is not a one-time calculation. Income, expenses, inflation, investment performance and retirement timing can change, so the plan should be reviewed periodically.
Use the retirement calculator
Use the retirement calculator to explore different assumptions and see how changes in savings, return, inflation and time horizon affect the estimated requirement.