Nepali Retirement Planning Calculator

Englishनेपाली

Calculate your retirement corpus with SSF/PF contributions for Nepal

Retirement Planning Inputs

years
years
years
NPR
NPR

Conservative

Low risk, stable returns

8%

Moderate

Balanced risk and returns

10%

Aggressive

High risk, high potential returns

12%

%
%

This calculator provides estimates based on assumptions. Actual results may vary. Please consult with a financial advisor.

Understanding Retirement Planning in Nepal

Retirement planning in Nepal requires careful consideration of several factors unique to the Nepali context, including inflation rates, investment returns, and social security options.

Key Considerations

  • Inflation: Nepal's average inflation rate of 6.5% significantly impacts long-term savings.
  • Investment Returns: Conservative investments yield around 8%, while aggressive portfolios may reach 12%.
  • Life Expectancy: The average life expectancy in Nepal is 71 years, but planning for longer is prudent.
  • Retirement Age: While government employees typically retire at 58, planning for retirement at 65 provides more financial security.

SSF and Provident Fund Benefits

Nepal's Social Security Fund (SSF) and Provident Fund (PF) systems offer significant benefits for retirement planning.

Social Security Fund (SSF)

  • Employee Contribution: 11% of basic salary
  • Employer Contribution: 20% of basic salary
  • Interest Rate: Approximately 11.5% annually
  • Benefits: Retirement, medical, accident, and disability coverage

Provident Fund (PF)

  • Employee Contribution: 10% of basic salary
  • Employer Contribution: 10% of basic salary
  • Interest Rate: Approximately 10.5% annually
  • Tax Benefits: Contributions are tax-deductible

Frequently Asked Questions

How much should I save for retirement in Nepal?

A common guideline is to aim for a retirement corpus that can provide 70-80% of your pre-retirement income. For most Nepalis, saving 15-20% of monthly income is recommended.

Is SSF better than PF for retirement planning?

SSF offers more comprehensive benefits including medical and disability coverage, while PF focuses primarily on retirement savings. SSF also has a higher employer contribution rate (20% vs 10%), making it potentially more beneficial for retirement planning.

How does inflation affect my retirement planning?

Nepal's relatively high inflation rate (averaging 6.5%) significantly erodes purchasing power over time. This means your retirement corpus needs to be larger to maintain your standard of living. Our calculator accounts for inflation in projections.

What investment options are available for retirement in Nepal?

Beyond SSF/PF, Nepalis can invest in mutual funds, stocks, real estate, and fixed deposits. Government bonds and corporate debentures also offer stable returns. Diversification across these options is recommended for optimal retirement planning.

Disclaimer: This calculator provides estimates based on the inputs and assumptions used. Actual results may vary based on market conditions, policy changes, and individual circumstances. Always consult with a qualified financial advisor before making investment decisions.