1. What is the 25x Rule?

The 25x rule is a guideline for retirement planning that suggests you need 25 times your annual expenses to retire. This is based on the 4% safe withdrawal rate, meaning you withdraw 4% of your corpus each year to cover expenses.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Explanation: Multiplying your annual expenses by 25 gives you the target corpus that would allow you to withdraw 4% annually (your expenses) while maintaining your principal.

3. Importance of Corpus Calculation

Details: Proper corpus calculation helps ensure you don't outlive your savings. The 4% rule is based on historical market returns and is adjusted for Indian inflation and investment scenarios.

4. Using the Calculator

Tips: Enter your current annual expenses in INR. Be sure to include all living costs - housing, food, healthcare, travel, etc. The calculator will show you the target retirement corpus needed.

5. Frequently Asked Questions (FAQ)

Q1: Is 25x rule sufficient for India?
A: While the 25x rule is a good starting point, Indian retirees may want to consider 30x-35x due to higher inflation and healthcare costs.

Q2: What investments should the corpus be in?
A: A balanced portfolio of equity (50-60%), debt (30-40%), and gold (10%) is recommended for Indian conditions.

Q3: Does this include emergency funds?
A: No, you should maintain 6-12 months of expenses as liquid emergency funds separately.

Q4: How does inflation affect this?
A: The 4% withdrawal rate accounts for inflation, but you should review your corpus annually and adjust for actual inflation.

Q5: What if I have other income sources?
A: Subtract any guaranteed income (pensions, rentals) from annual expenses before calculating the required corpus.