When Can I Retire?

Background

There is no universal retirement age. The real question is: when will your savings and investments be enough to fund your expenses for the rest of your life without salary income?

Explanation

You estimate your post-retirement expenses, choose a sensible withdrawal rate and then find the corpus required. You also check how long that corpus lasts given your asset allocation, inflation assumptions and life expectancy. The age at which your projected corpus meets these conditions is your financial retirement age.

Example

A 35-year-old saving ₹40,000 a month with EPF, NPS and SIPs and targeting ₹80,000 per month in today’s terms may find, via a retirement planner, that they can retire safely around 58–60. If they want to retire at 50, they need higher savings or lower expenses.

Try the planner

See how this concept fits your own retirement plan.

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