Retirement Planning — The Numbers You Need to Know
The 25x Rule
Multiply your desired annual retirement income by 25. That is your target retirement corpus. Want $60,000/year in retirement? You need $1,500,000.
The 4% Rule
You can safely withdraw 4% of your portfolio annually without running out of money over 30 years. $1,500,000 × 4% = $60,000/year.
Retirement Corpus Needed
| Annual Need | Corpus (25x) | Monthly SIP (30yrs, 10%) |
|---|---|---|
| $30,000 | $750,000 | $332 |
| $50,000 | $1,250,000 | $553 |
| $75,000 | $1,875,000 | $830 |
| $100,000 | $2,500,000 | $1,106 |
Starting at 30 with $553/month invested at 10% returns gives you $1.25 million by 60. That funds a $50,000/year retirement.
The earlier you start, the less you need to save monthly. Every decade of delay roughly triples the required monthly investment.
Plan yours: Retirement Calculator