How to know if you’re saving enough for retirement

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A simple thumb rule says your retirement pot should be about 25 times your yearly expenses in retirement. If you expect to spend Rs 12 lakh a year after you stop working, aim for roughly Rs 3 crore. It isn’t perfect, but it gives you a clear starting target that you can refine as you go.

Turn your target into a monthly number

Work backwards from that target. If you have Rs 60 lakh already and need Rs 3 crore, the gap is Rs 2.4 crore. Spread that over your remaining working years and invest toward it every month. Review once a year so you can adjust for salary changes, inflation and market swings. Keeping it this simple is what makes it workable.

Use what you already have

Your EPF and NPS are strong building blocks. EPF contributions grow quietly in the background and give you a solid base. NPS lets you take part of the money as a lump sum at retirement and convert the rest into a steady monthly income through annuity. Together, they take care of growth plus stability, so you don’t need dozens of products.

A five-minute check each month

Do a quick monthly review: are your EMIs and expenses leaving enough room for retirement investing? If not, cut back on non-essentials or prepay a bit of any expensive loan so you free up space. This tiny check works the same way EMI tracking protects you from a debt trap: it stops problems long before they grow.

Make it real with one example

Imagine you’re 40, want to retire at 60 and expect to spend Rs 12 lakh a year in retirement. Your target is about Rs 3 crore. If you’ve saved Rs 60 lakh so far, you need Rs 2.4 crore more over 20 years. A steady monthly SIP, increased whenever your income grows, usually gets you there. Staying consistent matters more than hunting for the perfect fund.

When to adjust the plan

Increase the target if your lifestyle gets bigger, your responsibilities rise or inflation turns out higher than expected. Reduce it if you plan to downsize, shift to a less expensive city or keep some part-time income in retirement. A once-a-year check keeps the plan realistic.

The bottom line

Know your “25x” number, invest toward it every month, and give yourself a short monthly check-in. This keeps your retirement plan simple, flexible and firmly on track without stress or complicated tools.