Retirement Gap Calculator
Key Takeaway
The retirement gap is the shortfall between your projected retirement corpus and the amount actually needed. Most Indians have a retirement gap of 40–60% , meaning they'll run out of money 10–15 years early.
1,94,08,066
5,91,934
626/mo
Retirement Wealth Path vs Target Goal
What to do next
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Retirement Savings Gap
Finds the deficit between your target retirement goals and current compound trajectory.
Worked Example: ₹2 Crore Target
The Retirement Gap: Why Your ₹15,000 SIP Might Leave You ₹47 Lakhs Short
Manoj, 35, has been investing ₹15,000/month in a diversified equity fund since he was 28. He feels good about it. His portfolio has crossed ₹20 Lakhs. His friends aren't even investing. He's winning, right?
Not exactly. When Manoj calculates his target retirement corpus , ₹4.5 Crores at age 55, based on current expenses of ₹60,000/month adjusted for 6% inflation , and compares it against his projected portfolio at 12% returns, a gap emerges. His current SIP trajectory produces approximately ₹4.03 Crores. He's ₹47 Lakhs short.
A ₹47 Lakh gap sounds terrifying. But here's where the math is kind: because Manoj has 20 years left, closing it requires just ₹3,200 more per month. That's one fewer restaurant dinner and two fewer cab rides. Due to compounding over two decades, this tiny increase generates the missing ₹47 Lakhs.
The tragedy isn't having a gap. The tragedy is discovering it at 55, when closing a ₹47 Lakh gap requires ₹47,000/month , ten times the cost. Check your retirement gap once a year, ideally every April when you review your finances. And every time you get a salary hike, route at least 50% of the increment into your retirement SIP. The earlier you catch the gap, the cheaper it is to fix.
Frequently Asked Questions
What is a retirement gap?
A retirement gap is the difference between the corpus you need to retire comfortably (your target) and the corpus your current savings trajectory will actually generate. A positive gap means you're falling short; zero or negative means you're on track or ahead.
How often should I check my retirement gap?
At least once a year, ideally at the start of each financial year. After every major financial event,salary hike, job change, marriage, child birth,recalculate to see if your gap has widened or narrowed. Early detection means easy corrections.
What is the easiest way to close a retirement gap?
Increase your monthly SIP by a small amount. Due to compounding over 15–20 years, even ₹3,000–5,000 extra per month can close a gap of ₹30–50 Lakhs. Route at least 50% of every salary hike toward closing the gap.
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