Loading
Market Intelligence › News And Updates
A rough corpus calculation, the effect of inflation, and the cost of delay
Published by The Retail Trader · AUG 09, 2026 · Features
The hardest part of retirement planning is not the maths. It is that retirement feels so far away that it is easy to push it to next year, every year — and that one habit does the most damage.
Don't start with 'how much money do I need'. Start with 'how much will I spend every month after retirement', in today's prices.
Then apply inflation to that number — because 25 years from now the same lifestyle will cost far more. This is the one step most calculations miss, and it halves the target.
A common method is to think of the corpus as a multiple of the annual requirement, on the idea that a small portion of the corpus will be withdrawn each year while the rest keeps working.
Three things affect that calculation the most:
• How many years it has to last after retirement — with rising life expectancy, this number keeps growing.
• How much you withdraw each year — the withdrawal rate alone decides how long the corpus lasts.
• The return after retirement — the portfolio's risk is lower in that phase, so it is more honest to assume a lower return too.
• And medical expenses — which rise with age and faster than inflation.
The biggest strength in retirement saving is time, because it is a 25-30 year goal. That is why even a five-year delay has a very large effect — and making it up later means putting in a lot more every month.
So starting with a small amount is always better than not starting. The amount can grow later; time that has passed does not come back.
India has some structured options for retirement — such as EPF and NPS — each with its own rules, lock-in and tax treatment, which are revised from time to time.
Treat them as part of your overall plan, not the whole plan. How much goes into them and how much stays outside depends on your goal, timeline and tax situation, and their exact rules should always be verified on the official source.
A retirement plan is not something to make once and forget. Review it every two to three years — income changed, expenses changed, the goal changed. A plan that is not revised slowly becomes someone else's plan.
This article is for educational purposes only — it is not a buy or sell recommendation, makes no claim of guaranteed returns, and is not advisory. Rules, rates and mechanics change from time to time at the exchange, SEBI and RBI, so verify every number yourself with your broker or the official source.