To calculate retirement savings needed: multiply your annual expenses by 25 (the 4% rule). If you need 1,200,000 rupees per year in retirement, you need 30,000,000 saved. Start saving early — 10,000 rupees per month at 8% return for 30 years grows to over 13 million rupees thanks to compound interest.
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🧓 Retirement Calculator
Calculate how much you need to retire comfortably. Find out if you are on track, how much to save monthly, and when you can retire. Plan your financial independence today!
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The 365tool.net Retirement Calculator uses the widely-accepted 4% withdrawal rule and compound interest. Free for retirement planning. Consult a financial advisor for personalized retirement strategy. No sign-up needed.
🤔 How Does This Work?
Calculates future value of current savings + monthly contributions at expected return
Applies 4% rule to find how much corpus is needed for your retirement expenses
Shows whether you are on track and what monthly savings gap exists
The 4% rule: multiply your annual retirement expenses by 25. If you need 1,200,000/year, save 30,000,000. This lets you withdraw 4% per year — historically, portfolios last 30+ years at this rate. Adjust for inflation and your expected lifespan.
When should I start saving for retirement?▼
As early as possible! Starting at 25 vs 35 can double your retirement savings due to compound interest. Even small amounts matter early. A 25-year-old saving 5,000/month at 8% will have 17.5 million by age 60. Starting at 35 with same savings gives only 7.5 million.
What return should I expect on investments?▼
Historical stock market returns: 8-10% annually (before inflation), 5-7% real (after inflation). EPF in Sri Lanka: around 8-9%. Bonds: 5-7%. Property: 5-8%. A diversified portfolio might average 7-8% over long periods. Use 6-7% for conservative planning.
What is the 4% rule?▼
The 4% rule (from the Trinity Study) states: if you withdraw 4% of your portfolio in year 1 and adjust for inflation each year, your portfolio has historically lasted 30+ years. It gives a simple target: save 25x your annual expenses. Some experts now suggest 3.5% for longer retirements.
How does inflation affect retirement?▼
Inflation erodes purchasing power. At 5% inflation, 100,000 rupees today needs to be 265,000 in 20 years to buy the same things. Your retirement savings must grow faster than inflation. Stocks and property historically outpace inflation better than cash or bonds.
The 4% rule: multiply your annual retirement expenses by 25. If you need 1,200,000/year, save 30,000,000. This lets you withdraw 4% per year — historically, portfolios last 30+ years at this rate. Adjust for inflation and your expected lifespan.
When should I start saving for retirement?▼
As early as possible! Starting at 25 vs 35 can double your retirement savings due to compound interest. Even small amounts matter early. A 25-year-old saving 5,000/month at 8% will have 17.5 million by age 60. Starting at 35 with same savings gives only 7.5 million.
What return should I expect on investments?▼
Historical stock market returns: 8-10% annually (before inflation), 5-7% real (after inflation). EPF in Sri Lanka: around 8-9%. Bonds: 5-7%. Property: 5-8%. A diversified portfolio might average 7-8% over long periods. Use 6-7% for conservative planning.
What is the 4% rule?▼
The 4% rule (from the Trinity Study) states: if you withdraw 4% of your portfolio in year 1 and adjust for inflation each year, your portfolio has historically lasted 30+ years. It gives a simple target: save 25x your annual expenses. Some experts now suggest 3.5% for longer retirements.
How does inflation affect retirement?▼
Inflation erodes purchasing power. At 5% inflation, 100,000 rupees today needs to be 265,000 in 20 years to buy the same things. Your retirement savings must grow faster than inflation. Stocks and property historically outpace inflation better than cash or bonds.