Retirement Fund Calculator
Last updated: 2026-06-25
The retirement fund you need is the amount required to cover the 'net expenses' — your monthly living costs minus pension income such as the National Pension — over your years in retirement.
The formula is: fund = net monthly expense × 12 × [1 − (1 + real return)−years] ÷ real return (the discounted present value of an annuity). The result is a reference estimate.
Enter your retirement details
Retirement fund needed (lump sum at retirement, estimate)
0 KRW
| Item | Value |
|---|---|
| Monthly expenses in retirement | |
| Net monthly expense not covered by pension | |
| Years in retirement | |
| Nominal total spending (before discount) | |
| Retirement fund needed (after discount) |
Many variables — medical costs, inflation and longevity risk — change the real amount needed. This result is a reference estimate; we recommend preparing with a comfortable margin.
How to use it
- Enter monthly expenses — the monthly living expenses you will need in retirement, in KRW.
- Enter years and pension — the expected years in retirement and your monthly pension income such as the National Pension.
- View the result — press Calculate to see the retirement fund needed, based on the expenses not covered by your pension, in a table.
How the retirement fund is calculated
The heart of a retirement fund calculation is how to fill the monthly shortfall across your years in retirement. First, subtracting the pensions you receive each month — National Pension, retirement pension and so on — from your monthly expenses gives the 'net monthly expense' you must draw from your savings. Multiplying that net expense simply by the years in retirement gives the nominal total, but the remaining money keeps earning interest, so the present value of that annuity discounted by the real return is the lump sum you actually need.
| Years in retirement | Real return 0% | Real return 2% |
|---|---|---|
| 20 years | about 240M KRW | about 198M KRW |
| 25 years | about 300M KRW | about 236M KRW |
| 30 years | about 360M KRW | about 269M KRW |
As the table shows, a higher real return reduces the fund needed, but a conservative approach is safer. Raising your pension income shrinks the net expense and sharply lowers the fund required, so estimating your National Pension benefit and building extra pension via pension savings can ease the burden. To see at what age your assets run out, use the Retirement Simulator.
Frequently asked questions (FAQ)
How much retirement money do people usually need?
There is no single answer. If a couple's adequate monthly living cost is around 2.5–3 million KRW, then after subtracting the National Pension and assuming 30 years in retirement, you may need several hundred million KRW. This calculator gives a personalized estimate by letting you enter your own monthly expenses, years in retirement and pension income.
What is the real return rate and why use it?
The real return rate is your investment return minus inflation. Your saved funds keep earning while prices keep rising, so we discount future expenses to present value using the real return that reflects both. The default of 2% is a conservative assumption; a lower rate raises the fund you need.
Do I have to enter my National Pension income?
It is optional. If you enter it, you only need to fund the 'net expenses' left after subtracting your pension income, which lowers the fund required. Entering the value from the National Pension Calculator gives a more realistic result.
Can I rely on this calculator's result?
It is a reference estimate. Many variables — surging medical costs, inflation swings, longevity risk and taxes — change the real amount needed. We recommend preparing with a margin and reviewing regularly.
Related calculators & guides
National Pension Calculator
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Retirement Simulator
Simulate at what age your assets run out.
Pension Savings Tax Credit Calculator
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National Pension & Pension Savings Basics
An intro guide to the Korean pension system in one place.
Last updated: 2026-06-25