Question 1

Why does healthcare need its own inflation-adjusted calculator?

Accepted Answer

Healthcare costs in India have historically risen faster than general consumer inflation — often 10-15% annually versus 5-6% for general CPI — so using a general inflation rate for healthcare planning tends to significantly underestimate future medical expenses.

Question 2

How is the healthcare corpus estimated?

Accepted Answer

This calculator projects your current annual healthcare spend forward to your retirement year using a healthcare-specific inflation rate, then estimates a corpus using the same 4%-rule logic as general retirement planning (future annual cost ÷ 4%).

Question 3

Should this be separate from my main retirement corpus?

Accepted Answer

Many planners recommend keeping a dedicated health insurance policy plus a separate buffer for healthcare costs not covered by insurance, rather than assuming your general retirement corpus alone will absorb medical shocks — especially since healthcare costs tend to rise sharply in later years of retirement.

Question 4

Does adequate health insurance reduce how large this corpus needs to be?

Accepted Answer

Yes — a comprehensive senior citizen health insurance policy can absorb a large share of major medical costs, meaning this healthcare corpus mainly needs to cover premiums, co-payments, deductibles, and expenses outside your policy's coverage.

Retirement Healthcare Cost Calculator

This healthcare cost needs its own plan

What is a Retirement Healthcare Cost Calculator?

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