fincalculatorThe Indian Retirement Reality Check
With increasing life expectancy and nuclear families, "Retirement" in India is lasting longer than ever—often 25 to 30 years. Without a solid plan, you risk outliving your money. Our calculators are designed to help you understand your statutory benefits and your voluntary savings.
1. Gratuity: The Reward for Loyalty
If you have completed 5 years of continuous service in any establishment with 10 or more employees, you are legally entitled to Gratuity. In India, this is calculated as 15 days of salary for every year worked. It is one of the most significant terminal benefits for Indian private-sector employees.
2. The Inflation Trap in Post-Retirement
Most Indians underestimate Lifestyle Inflation. If your expenses are ₹50,000 today, in 20 years, even at a modest 6% inflation, you will need ₹1.6 Lakhs per month just to maintain the same lifestyle. Your retirement corpus must not only be large but also invested in assets that continue to grow after you stop working.
3. EPF & PPF: The Safe Foundation
Employee Provident Fund (EPF) is a mandatory saving for salaried Indians. It currently offers one of the highest safe interest rates (approx 8.15% - 8.25%). Coupled with the Public Provident Fund (PPF), which offers tax-free maturity, these instruments form the safe 'debt' portion of your retirement portfolio.
The SWP Strategy
A Systematic Withdrawal Plan (SWP) from a Mutual Fund corpus is becoming a popular alternative to traditional pensions in India. It allows you to withdraw a fixed sum every month while the remaining corpus continues to stay invested and grow in the equity market.
4. Healthcare: The Silent Cost
Medical inflation in India is rising at 12-14% annually. A major surgery that costs ₹5 Lakhs today could easily cost ₹20 Lakhs in your 70s. Any retirement plan created at FinCalculator.cloud recommends building a separate Medical Fund or maintaining a high-coverage Health Insurance (Super Top-up) plan alongside your main savings.