Method, example and interpretation · Revised 16 October 2026
Retirement planning needs more than a target corpus
These tools separate accumulation, retirement expenses, statutory contribution accounts and pension lookups. A single return assumption cannot describe them all. Check whether a number represents spendable cash, an interest-bearing account, an annuity allocation, or a benefit for a nominee.
Inflation and withdrawal timing
The retirement planner first inflates today’s monthly expenses until retirement. It then discounts annual retirement spending using the real return (1 + nominal return) ÷ (1 + inflation) − 1. Spending is assumed at the beginning of each retirement year. Negative real returns increase the corpus requirement; they are not treated as zero. Healthcare shocks and uneven market returns need a separate reserve.
EPF and pension allocations
The EPF projection separates the employer’s EPS allocation from the interest-bearing EPF balance. It accumulates actual contributions as salary grows, accrues interest on monthly opening balances, and credits that interest annually. EPS eligibility and the applicable wage ceiling can differ by member history; enter assumptions matching your employer’s records. The selected rate is an illustration, not a future declared rate.
APY, NPS and gratuity are distinct
APY uses an exact entry-age contribution lookup and shows indicative nominee corpus separately from monthly pension. Check current joining restrictions with PFRDA. NPS illustrates a 60/40 lump-sum/annuity split and an assumed annuity yield, not an insurer quote. Gratuity calculations depend on coverage and salary/service definitions; a tax exemption ceiling is not a universal cap on every employment benefit.
Worked example
APY entry age 27, selected monthly pension ₹5,000.
Official contribution-table lookup: ₹446/month; indicative nominee corpus ₹8,50,000.
Pension is paid under scheme conditions. Nominee corpus is a separate benefit, not a lump sum available for spending at retirement.
Questions about this tool
What happens when returns are below inflation?
Each rupee buys less over time. The retirement planner therefore requires more capital than a zero-real-return case.
Should I include pension income in expenses?
Use the retirement expense input for the spending gap your corpus must fund after considering other reliable income. Avoid counting the same income twice.