Stochastic Approach to Calcuating Retirement Corpus

Please provide your inputs below for the estimated annual withdrawals from the retirement portfolio, the equity allocation and the retirement period.

Using Stochastic techniques, this tool will undertake simulations based on above parameters and calculate the required retirement corpus. Because this is an iterative process, and the simulator tries out different expenditure cover ratios, it can take a while to arrive at a solution. Please be patient.

Input Parameters

Annual Expenditure in First Year of Retirement (₹) If you are a retiree, you can input above your current annual expenditure. If you are yet to retire, please input your estimated annual expenses in your first year of retirement - one way of approximating the same is to take your current annual expenditure and inflate the same till the year of your retirement.

Equity Allocation (%)

Retirement Period (months)

Number of Simulations It is recommended to run at least 1000 simulations to get a meaningful output.

Since this is an iterative process, and the simulator tries out different expenditure cover ratios, it can take a while to arrive at a solution. Please be patient. Expected wait time is upto 2-3 minutes.

Simulation Statistics

Total Simulations:	-
Successful Outcomes:	-
Failed Outcomes:	-
Success Rate:	-
Failure Rate:	-

There are three key strength of the Stochastic Approach. The first is that it does not provide a single outcome, but a range of possible outcomes, which enables you to better understand the risk of running out of money in retirement. The second is that it factors in the Sequence of Return Risk. The third is that it liberates us from making predictions about how asset returns and inflation will fare in the future. So you do not need to provide an input for future equity return, debt return or inflation.