Financial Calculators
Retirement Healthcare Corpus Calculator
Medical costs rise faster than everything else. Fund them separately, starting now.
Healthcare corpus needed at retirement
₹1,93,03,425
- Yearly medical cost at retirement
- ₹4,82,315
- Monthly SIP to build it
- ₹32,555
Medical costs have risen faster than general inflation for decades. This funds out-of-pocket spending; a health insurance policy or ECHS covers hospitalisation, not the rest. Treat the two as complements, not substitutes.
These figures are for illustrative purposes only and are not investment advice. Please consult your investment adviser for investment related advice.
The expense that outruns the pension
Healthcare inflation in India has run well above general inflation for years. A retirement plan that inflates everything at 6% quietly underfunds the one expense that grows at 10-14%. Out-of-pocket spending on medicines, consultations, tests and care that insurance does not cover is the part that lands on the household every month.
This calculator takes today's family medical spend, grows it to retirement at medical inflation, funds it through retirement as a growing annuity, and shows the monthly SIP that builds the corpus in time.
Inflate, fund, then work back to a SIP
Cost at retirement = today's cost x (1 + med. inflation)^(years to retire)\nCorpus = sum over retirement years of cost x (1+m)^y / (1+r)^y\nSIP = corpus / annuity-due factor at r for years to retireWorked example: a family spending Rs 50,000 a year on medical costs today, with medical inflation at 12% and 20 years to retirement, will spend Rs 4,82,315 a year at retirement. Funding 25 years of that at an 8% return needs a corpus of Rs 1,93,03,425, which a SIP of Rs 32,555 a month builds in time.
Frequently asked questions
I have ECHS or a health policy. Do I still need this?
Yes, for what they do not cover: outpatient care, medicines, diagnostics, dental, home care, and the co-payments and exclusions in any policy. This corpus is for the ongoing spend; insurance is for the hospital bill.
Why 12% medical inflation?
It is the middle of the range surveys have reported for India over the past decade. Use a lower figure if your spend is mostly on items whose prices have been stable, and a higher one for chronic conditions.
Should the SIP be in equity?
For a horizon of 15 years or more, largely yes, shifting to debt in the last five years before retirement. The 8% default is a blended long-run return for such a glide path.
What if I am retiring now?
Set years to retirement to zero. The SIP disappears and the corpus is what should be carved out of terminal benefits for healthcare from day one.
Health costs deserve their own line in the plan.
We build a dedicated healthcare bucket alongside the retirement corpus so one never raids the other.