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Retirement

How much you need to retire comfortably

Your target is a multiple of your annual spending, not a round number. Start from what you actually spend, then adjust.

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Written by adminPublished Reading time 4 minute read

A widely used starting point is twenty-five times your annual spending, which corresponds to withdrawing about four percent a year. It is a starting point, not a rule.

The 25x rule, adjusted

A simple way to move from a rough multiple to your own number.

Annual spending 6,00,000 Your figure
25x multiple 1,50,00,000 Starting target
Add buffer +10% Healthcare and inflation

The buffer matters more than the multiple. It absorbs the costs that rise fastest in later years.

Start with your spending

Track a full year of spending before choosing a target. The number you get is more useful than any rule of thumb, and it makes the monthly saving required obvious.

Frequently asked questions

Is the four percent rule reliable?

It is a planning starting point based on historical data, not a guarantee. Adjust it for your own timeline and costs.

When should I start saving?

The earlier the better, because compounding does most of the work in the final years before retirement.

Sources

  1. Placeholder retirement planning page Example Authority, 2025

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