Amounts in your currency, rates per year.
Enter your ages to set the timeline.
Earned while drawing down
Employer or provident fund
0 drawn monthly from the total in B while the rest earns 0%.
0% covered
Fill in the sections above to compare.
The calculator answers three questions in order. What a retirement will cost, what you will have when it starts, and how long that money will last against that cost.
The cost starts from what you spend in a month today and grows it by inflation, compounded yearly, up to the year you retire. That monthly figure is then held flat through retirement. The amount needed on retirement day is the present value of drawing that figure every month for the rest of your life while the balance keeps earning the rate you set for after retirement.
What you will have is your current savings and your monthly contributions, each grown month by month at your interest rate until retirement, plus any lump-sum benefit paid on the day. Contributions are assumed at the end of each month.
The last section runs the drawdown month by month: interest is added, the month's cost is taken out, and the count stops when the balance reaches zero. If one month's interest already covers the cost, the money never runs out. The need and the have are built on the same drawdown, so the money lasts to your life expectancy exactly when have meets need.
Enough that, invested at a modest rate, it can pay your monthly cost every month for as long as you expect to live. Start from what you spend today, grow it by inflation to your retirement year, and the calculator turns that into a single number for retirement day. For a monthly cost of 50,000 today, 5 percent inflation, 25 years to go and 20 years in retirement, the need is in the tens of millions, which is why starting early matters.
Two effects compound. Inflation raises today's monthly cost every year until you retire, and retirement itself is long: twenty years is 240 monthly withdrawals. The interest the balance keeps earning after retirement offsets some of this, which is why the rate after retirement is a separate input.
The calculator simulates it. Each month the balance earns interest at the after-retirement rate, then the monthly cost is withdrawn. It reports the year the balance reaches zero, the age you would be, and whether that is before or after your life expectancy. If one month's interest alone covers the cost, the money lasts indefinitely.
Yes, as the lump sum you expect to receive on retirement day. It is added to the total without growth, because it is paid out at the moment the drawdown begins rather than invested along the way.
Use the rate you can reasonably earn on the money, after fees, not the best year you have seen. A blended long-term portfolio is often quoted at 6 to 8 percent a year before retirement; after retirement most people move to safer holdings and should use a lower figure. Try two rates and see how much the answer moves.