How much do you need to retire?
The amount you need at retirement depends on your expected monthly expenses and how many years you expect to spend in retirement. A common rule is the 25x rule — you need 25 times your annual expenses saved to retire comfortably (assuming a 4 percent safe withdrawal rate).
If you expect to spend Rs 50,000 per month in retirement, you need Rs 50,000 times 12 times 25 = Rs 1.5 crore. This calculator works out whether your current savings trajectory will get you there.
Retirement planning in Pakistan
Pakistan has a mandatory EOBI (Employees Old Age Benefits Institution) contribution of 1 percent of minimum wage from employees and 5 percent from employers. EOBI pays approximately Rs 10,000 to Rs 12,000 per month — far below what most households need in retirement. Supplementing with personal savings is essential.
Key retirement planning principles
Start as early as possible — every decade of delay roughly halves your final corpus. Increase contributions with every salary raise. Account for inflation — expenses in retirement will be higher than today. Build 12 to 24 months of expenses in liquid savings as a buffer for unexpected needs.
Frequently Asked Questions
What is the safe withdrawal rate? The 4 percent rule says you can withdraw 4 percent of your retirement corpus annually without running out of money over 30 years. Rs 1 crore corpus supports approximately Rs 33,000 per month.
What happens to my provident fund at retirement? Government employees receive GPF as a lump sum at retirement. Private sector employees with EPF can withdraw after 58 years of age. Use the Provident Fund Calculator to project your balance.
Should I account for inflation? Yes. Expenses that cost Rs 50,000 today will cost roughly Rs 97,000 in 15 years at 5 percent inflation.
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