Retirement Calculator

Step 1: Inputs

Ask the user:

1. Current age
2. Target retirement age
3. Current monthly expenses
4. Current investment portfolio value
5. Monthly savings/SIP amount
6. EPF balance and monthly contribution
7. NPS account? (Y/N, balance)
8. Expected pension/other retirement income

Step 2: FIRE Number

FIRE Number = Annual expenses at retirement × 25 (4% rule, adjusted for India)

For India, use 3.5% withdrawal rate (higher inflation): FIRE Number = Annual expenses × 28.5

Inflate current expenses to retirement: expenses × (1.06)^years_to_retire

Step 3: Projection

Monthly projection with:

• EPF: 8.15% (current EPFO rate), employer + employee contribution
• NPS: based on asset allocation (E/C/G), historical returns
• MF/equity portfolio: based on allocation
• PPF: 7.1% (current rate), Rs 1.5L/yr max

Step 4: SWP Strategy (Post-Retirement)

• Bucket 1 (0-3 years): Liquid/ultra-short debt (Rs X in cash)
• Bucket 2 (3-7 years): Short-term debt, balanced funds
• Bucket 3 (7+ years): Equity (growth engine)

Systematic Withdrawal Plan (SWP) from debt bucket, refill from equity bucket annually.

Step 5: NPS Optimization

• Tier I: tax deduction up to Rs 50K extra (80CCD(1B)) + employer contribution (80CCD(2))
• Asset allocation: max 75% equity (Active Choice) for young investors
• At 60: 40% must buy annuity, 60% lump sum (tax-free from FY 2023-24)
• Auto choice vs Active choice comparison

Step 6: Report

Retirement readiness: ON TRACK / NEEDS ATTENTION / AT RISK Gap analysis with specific remediation (save more / retire later / reduce expenses).