Retirement SIP Calculator: How Much to Save for ₹1 Lakh/Month at 60
Published 30 June 2026 · Investing
Vikram in Delhi is 33. He wants to retire at 60 and draw ₹1 lakh a month for the rest of his life. His current SIP is ₹8,000/month. He has no idea if it is enough. This post works through his exact numbers — and shows why inflation changes the answer dramatically.
Step 1: Calculate the Retirement Corpus Vikram Actually Needs
Vikram needs ₹1 lakh/month today. But he retires in 27 years. At 5% inflation for 27 years, ₹1 lakh today becomes approximately ₹3.73 lakh/month in purchasing power at 60. Annual need at retirement: ₹3.73L × 12 = ₹44.8L/year.
Using the 4% withdrawal rule (corpus should be 25× annual expenses): required corpus = ₹44.8L × 25 = ₹11.2 crore. That is the inflation-adjusted retirement corpus.
The non-inflation-adjusted version: ₹1L/month = ₹12L/year × 25 = ₹3 crore. Vikram would need ₹3 crore if he assumed ₹1L would be enough at 60 in today's money — which it will not be, but it is a useful lower bound.
Step 2: Monthly SIP Required
Using PMT = FV × r / ((1 + r)^n – 1):
For ₹3 crore in 27 years (non-inflation-adjusted) at 12% CAGR: r = 0.01, n = 324 months. PMT = ₹3,00,00,000 × 0.01 / ((1.01)^324 – 1). (1.01)^324 ≈ 25.7. PMT = ₹30,00,000 / 24.7 ≈ ₹7,429/month.
For ₹11.2 crore (inflation-adjusted): PMT = ₹11,20,00,000 × 0.01 / 24.7 ≈ ₹27,733/month. Vikram is investing ₹8,000/month. He needs ₹27,733/month for the inflation-adjusted target — a ₹19,733/month shortfall. The lower-bound target of ₹3 crore he can almost reach: his ₹8,000/month at 12% for 27 years gives approximately ₹3.2 crore.
Vikram's Current Position and How to Close the Gap
Vikram also has ₹3L already invested in mutual funds. At 12% for 27 years, that grows to ₹3L × (1.12)^27 ≈ ₹3L × 18.6 ≈ ₹55.9L. His total projected corpus: ₹3.2 crore (SIP) + ₹55.9L (existing) = approximately ₹4.1 crore. Well short of ₹11.2 crore.
| Scenario | Monthly SIP | Corpus at 60 | Monthly Income at 4% Withdrawal |
|---|---|---|---|
| Current flat SIP | ₹8,000 | ₹4.1 crore | ₹1.37L |
| 10% annual step-up from ₹8,000 | ₹8,000 → ₹88,000 (year 27) | ₹11.3 crore | ₹3.77L |
| Inflation-adjusted target | ₹27,733 flat | ₹11.2 crore | ₹3.73L |
A 10% annual step-up on Vikram's current ₹8,000/month SIP gets him to ₹11.3 crore — almost exactly on target. At year 27, he would be contributing ₹88,000/month, but by then his salary (currently ₹1.2L/month) would likely be ₹3–4L/month at 8% annual growth. The step-up is affordable because income grows alongside the SIP.
Run this for your own numbers
Calculate Your Retirement SIP →What Most People Get Wrong
They forget to inflation-adjust the retirement corpus. ₹1L/month feels like enough today — comfortable Delhi lifestyle, reasonable expenses. But ₹1L at 60 (in 27 years at 5% inflation) will buy what ₹26,800 buys today. Vikram would be retiring on a near-poverty income in real terms. The correct number is ₹3.73L/month at 60 to match today's ₹1L lifestyle. Planning for ₹3 crore corpus (the non-inflation-adjusted target) means arriving at retirement with income equivalent to ₹26,800/month in today's terms — not ₹1L. This single mistake is the most expensive error in retirement planning.
Frequently Asked Questions
How much corpus do I need for retirement in India?
Use the 4% withdrawal rule: your retirement corpus should be 25× your annual expenses. If you need ₹1L/month = ₹12L/year in retirement, you need ₹12L × 25 = ₹3 crore. Adjust for inflation: ₹1L today = approximately ₹2.2L in 30 years at 5% inflation — so you actually need ₹2.2L/month at 60, meaning corpus ≈ ₹6.6 crore.
How much SIP do I need to retire comfortably in India?
For a ₹3 crore corpus in 30 years at 12% CAGR: ₹8,563/month SIP. For ₹6.6 crore (inflation-adjusted): ₹18,839/month. Starting a step-up SIP at ₹5,000–8,000/month at 30, increasing 10% annually, typically reaches ₹3–5 crore by 60.
What is the 4% withdrawal rule for retirement?
The 4% rule says you can withdraw 4% of your corpus annually without running out of money over a 25–30 year retirement. ₹1 crore corpus → ₹4L/year = ₹33,333/month. ₹3 crore → ₹12L/year = ₹1L/month. It assumes the remaining corpus continues to grow at inflation-adjusted returns.
Is EPF enough for retirement in India?
Unlikely for most urban middle-class households. EPF grows at 8.15% (FY2026 rate) and most salaried employees accumulate ₹30–80L by retirement depending on salary and tenure. This provides ₹10,000–27,000/month at 4% withdrawal — typically insufficient as the sole retirement income.
When should I start my retirement SIP?
The earlier the better. At 25: ₹5,000/month at 12% for 35 years = ₹2.7 crore. At 35: ₹5,000/month for 25 years = ₹94.9L. At 45: ₹5,000/month for 15 years = ₹25.2L. Starting 10 years earlier with the same monthly investment produces nearly 3× the corpus.
Have you calculated your retirement corpus target with an inflation adjustment — or are you planning for ₹1L/month at 60 in today's money terms?