Pension Corpus Calculator
Work out the retirement fund you need to cover expenses for life.
Enter your numbers
Example: 30
Example: 60
Example: 30000
Example: 6
Example: 80
Example: 500000
Example: 8
Recent
Formula
How the calculation works
Your monthly expense is grown at the inflation rate to the day you retire, because the same lifestyle costs more by then.
The years in retirement come from life expectancy minus retirement age, and the corpus is the pot that funds that many years of spending.
The real return strips inflation out of the post-retirement return, and any existing savings are subtracted to leave the gap you still have to build.
Common mistakes
- Using today's expenses as the retirement figure, which understates the corpus by a large margin once inflation is counted.
- Forgetting health costs, which typically rise faster than general inflation in retirement.
When to use it
- Use it in your thirties or forties, when there is still time to build the corpus through regular saving.
- It is not a withdrawal plan; it estimates the pot you need, not how to draw from it year by year.
Worked example
At 30, retiring at 60 with 30,000 monthly expense and 6% inflation needs about 34,181,440.
Common questions
Why is the corpus so large?
Inflation raises your monthly expense over the years and you then draw from the fund for around 20 years.
Does an existing pension reduce this?
Yes. Count its value and any savings as part of the corpus, then fund only the gap.
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