Project future needs and current savings realistically. Adjust assumptions for inflation, returns, and retirement age. Make smarter saving decisions before retirement surprises reduce lifestyle.
| Current Age | Retire Age | Life Exp. | Current Savings | Monthly Save | Spending (Today) | Projected Corpus | Required Corpus | Shortfall | Funding Ratio |
|---|---|---|---|---|---|---|---|---|---|
| 35 | 60 | 85 | 3,500,000 | 60,000 | 1,800,000 | 77,420,000 | 123,950,000 | 46,530,000 | 62.5% |
| 40 | 62 | 85 | 8,000,000 | 90,000 | 2,400,000 | 92,100,000 | 118,300,000 | 26,200,000 | 77.9% |
The calculator uses monthly compounding for accumulation and annual inflation-adjusted withdrawals for retirement needs.
Net Pre-Ret Return = Expected Pre-Ret Return - Portfolio Fee
Net Post-Ret Return = Expected Post-Ret Return - Portfolio Fee
FV Current Savings = Current Savings × (1 + monthly net return)^(months)
FV Contributions = Monthly contributions simulated with annual step-up and monthly compounding
First-Year Spending (retirement nominal) = Desired Spending Today × (1 + inflation)^(years to retirement)
First-Year Gross Withdrawal = max(0, Spending - Guaranteed Income) ÷ (1 - withdrawal tax rate)
Withdrawal Corpus = PV of growing annuity with growth = inflation and discount = post-ret net return
Total Required Corpus = Withdrawal Corpus + One-Time Expense Provision + Legacy Provision + Contingency Buffer
Shortfall = max(0, Required Corpus - Projected Corpus)
Extra Monthly Contribution = Shortfall ÷ FV factor of 1 monthly unit under your assumptions
A retirement shortfall occurs when projected savings at retirement are lower than the amount needed to fund spending, taxes, one-time costs, and legacy goals. This calculator converts inputs into future values using inflation assumptions, then compares projected corpus against required corpus. It reports a funding ratio, which makes progress easier to track. Using one method for all inputs reduces planning errors and improves consistency across scenarios.
The most influential assumptions are retirement age, inflation, expected return before retirement, expected return after retirement, and annual spending needs. Even small inflation changes can raise the required corpus because withdrawals usually increase each year. Delaying retirement can improve results by extending contributions and shortening retirement duration. This calculator supports annual contribution growth, reflecting salary progression and stronger savings habits rather than a flat monthly deposit.
Pensions, annuities, and other guaranteed income streams reduce the amount a portfolio must provide. The calculator inflates those offsets to retirement and subtracts them from desired spending to estimate the first-year portfolio withdrawal. It then adjusts for a withdrawal tax rate to produce a gross withdrawal target. This tax-aware approach improves realism because many plans underestimate taxes, which can make the shortfall appear smaller than it actually is.
A positive shortfall means projected assets are below the required retirement corpus. The funding ratio shows what percentage of the target is covered by savings, helping users compare scenarios quickly. The recommended extra monthly contribution converts the shortfall into an actionable number. Users can test trade-offs by changing retirement age, spending assumptions, contribution growth, or legacy goals. Scenario analysis is more useful than relying on one static forecast.
Retirement planning works best as an ongoing process, not a one-time calculation. Updating this model every six to twelve months helps align contributions with salary changes, market returns, and household expenses. Users should test conservative, baseline, and optimistic assumptions to understand risk. Tracking the extra monthly amount over time supports better habits and decisions. Regular reviews can turn a shortfall estimate into a measurable plan with steady progress today.
A retirement shortfall is the gap between your projected retirement savings and the total capital needed to fund withdrawals, taxes, one-time expenses, and legacy goals.
Yes. The calculator inflates both desired spending and guaranteed income to retirement using your inflation assumption, then estimates the portfolio-funded amount.
Pre-retirement returns affect portfolio growth while you are saving. Post-retirement returns affect how much capital is needed to sustain withdrawals after retirement begins.
The buffer adds a percentage cushion on top of calculated retirement needs. It helps cover uncertainty in healthcare, inflation surprises, or spending drift.
The shortfall is divided by a simulated future-value factor for one monthly unit, using your return and contribution growth assumptions through retirement.
Yes. Change retirement age, spending, inflation, and contribution values to compare multiple scenarios and identify practical trade-offs that improve funding ratio.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.