Pension / Retirement Corpus Calculator
Project your retirement corpus based on monthly contributions, annual return, and inflation rate. See how much you'll have and what it's worth in today's money.
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How to use this calculator
FV = future corpus, PMT = monthly contribution, r = monthly return rate, n = total months of contribution. Inflation-adjusted corpus = FV / (1+inflation)^years.
- 1
Enter your current age and the age at which you plan to retire.
- 2
Enter your monthly contribution to a retirement or pension account.
- 3
Enter the expected annual return rate — use 7–8% for equity-heavy portfolios, 4–5% for conservative.
- 4
Enter the expected inflation rate to see the real (purchasing-power-adjusted) value of your corpus.
Frequently asked questions
What is the 4% withdrawal rule?
The 4% rule (Bengen Rule) suggests retirees can withdraw 4% of their corpus in year one, then adjust for inflation annually, with a high probability of the money lasting 30+ years. It is a rule of thumb — actual sustainability depends on your asset allocation and sequence-of-returns risk.
What annual return rate should I use?
Global equity markets have historically returned 7–10% annually before inflation. A balanced portfolio (60% equity, 40% bonds) averages 5–7%. Use 6–8% for a reasonable long-run estimate; use 5% for a conservative plan. Avoid assuming more than 10% — high assumptions lead to under-saving.
Why is the inflation-adjusted corpus much smaller?
At 3% annual inflation over 30 years, prices roughly triple. A corpus of $1 million will have the same purchasing power as about $412,000 today. Planning with the inflation-adjusted figure ensures you aren't surprised by the gap between nominal and real wealth.
How does starting 10 years earlier affect the corpus?
Enormously. Starting at 25 vs 35 with $500/month at 8% return: by age 60, starting at 25 yields ~$1.86M; starting at 35 yields ~$793K — a 2.3× difference from 10 extra years of compounding. The first decade's contributions matter most.
Building your retirement corpus with compound growth
Why early contributions matter most
Compound interest rewards early savers disproportionately. A contribution at age 25 has 35 years to compound before retirement at 60; the same contribution at age 45 has only 15 years. The early contribution can be worth 4–5× more by retirement due to the exponential nature of compounding. Starting as early as possible — even with small amounts — is the single most powerful retirement move.
Accounting for inflation in retirement planning
Inflation erodes purchasing power over time. If you retire with a corpus worth $1 million in nominal terms but inflation ran at 3% for 30 years, that money buys what $412,000 buys today. Always plan using inflation-adjusted (real) returns — subtract the inflation rate from the nominal return for a simplified real return estimate. A 8% nominal return with 3% inflation gives roughly 5% real return.
Retirement savings vehicles by country
US: 401(k), IRA, Roth IRA. UK: SIPP, Workplace Pension (auto-enrollment). India: EPF, PPF, NPS. Australia: Superannuation. Canada: RRSP, TFSA. Each vehicle has contribution limits and tax advantages. Maximize tax-advantaged accounts first — the tax savings compound just as powerfully as investment returns.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →