/ud83d/udc74 Indian Parents Retirement Calculator
Calculate how much you need to support aging parents - medical expenses, monthly costs, and emergency fund. Plan ahead for your family's financial security.
/ud83d/udc74/ud83d/udc75
Rs 28,000
Your Monthly Support Needed
Medium Risk
Monthly Gap: Rs 25,000 | Support Years: 28 years
20-Year Total Need
Rs 72 L
Medical Emergency Fund
Rs 12 L
Insurance Status
Moderate
Insurance Gap
Rs 5 L
Corpus Required
Rs 75 L
Expenses in 5Y (Inflation)
Rs 53,500
/ud83d/udcca Typical Expense Breakdown
/ud83d/udcc5 Age-Based Milestones
/u2705 Recommendations
/ud83d/udc74 How to Use the Parents Retirement Calculator
- Enter Parents' Ages: Input both parents' current ages. The calculator plans until age 85 for the younger parent.
- Monthly Expenses: Include all regular expenses - groceries, utilities, domestic help, medicine, etc.
- Existing Income: Add any pension (government or private), rental income, or interest from savings.
- Health Insurance: Enter current health insurance coverage. Calculator recommends if it's adequate.
- Home Ownership: Toggle if parents own their home - this significantly affects expense planning.
- Review Results: See monthly support needed, emergency fund, and long-term corpus requirements.
/ud83d/udca1 Planning for Parents' Retirement in India
With increasing life expectancy and healthcare costs, planning for parents' retirement is crucial. Unlike Western countries, India lacks robust social security - making family support essential.
The Reality of Elderly Care Costs
- Healthcare Inflation: Medical costs rise 10-15% annually in India - much higher than general inflation
- Hospitalization: Average hospital stay costs Rs 50,000-2,00,000 for common surgeries
- Chronic Conditions: Diabetes, BP medicines cost Rs 2,000-5,000/month
- Domestic Help: Full-time caregiver costs Rs 15,000-30,000/month in metros
- Life Expectancy: Indians now live to 70+ on average - plan for 25+ years of support
Why Health Insurance is Critical
Recommended Coverage by Age:
- 55-60 years: Rs 10-15 lakhs base + Rs 20 lakh super top-up
- 60-70 years: Rs 15-20 lakhs base + Rs 30 lakh super top-up
- 70+ years: Rs 20-25 lakhs base + Rs 50 lakh super top-up (if available)
After 65, getting new insurance is difficult and expensive. Buy early and maintain continuously.
Building the Support Corpus
Monthly Contribution Strategy:
- Set up dedicated SIP equal to monthly gap amount
- Use conservative equity allocation (40-60% equity for 10+ year horizon)
- Keep 6 months expenses in liquid fund for emergencies
- Consider Senior Citizen Savings Scheme (SCSS) for guaranteed 8%+ returns
- PMVVY (Pradhan Mantri Vaya Vandana Yojana) for pension income
/u2753 Frequently Asked Questions
How much should I save monthly for parents' retirement?
Depends on their expenses and existing income. If parents need Rs 40,000/month and have Rs 15,000 pension, you need Rs 25,000/month plus 20% buffer for medical emergencies - totaling around Rs 30,000/month support.
What health insurance should I get for 60+ parents?
For parents aged 60-70, aim for Rs 15-20 lakh coverage. Consider super top-up plans for cost-effective high coverage. Look at senior citizen specific plans from Star Health, Care Health, or HDFC Ergo. Premium will be Rs 25,000-50,000/year.
What if parents have no pension?
More planning needed! Consider: (1) Senior Citizen Savings Scheme for 8.2% guaranteed returns, (2) PMVVY for monthly pension, (3) Post Office Monthly Income Scheme, (4) Reverse mortgage if they own property. Build corpus of 25x annual expenses.
Should I include parents in my health insurance?
Separate policy is often better. Parents above 60 significantly increase family floater premiums. Individual senior citizen policies offer better coverage. However, compare both options for your specific case.
How much emergency fund for elderly parents?
Minimum Rs 5-10 lakhs in liquid funds + health insurance. For parents 70+, keep Rs 10-15 lakhs accessible. This covers insurance deductibles, non-covered treatments, and emergencies before insurance claims settle.
What about old age homes/assisted living?
Quality assisted living costs Rs 30,000-80,000/month in metros. Old age homes range from Rs 10,000-50,000/month. Consider this as a backup plan after age 80. Many Indians prefer home care with domestic help.