How Much Should I Save for Retirement?
Project your pension-plan, unit trust and other retirement saving — the layer that sits on top of the Universal Pension — based on your age, monthly contribution and expected return, in taka. Free, no sign-up.
Your Details
The Universal Pension pays from age 60 — see the Universal Pension calculator.
Include your own contribution to an approved pension or retirement scheme, your employer's, and any separate investing in unit trusts or shares.
After fees and tax, and ideally after inflation. Bangladeshi inflation has often run mid-single-digits, so a real return well below the nominal figure is realistic.
At Retirement — Age 60
Projected Savings
Tk 3,00,27,569
25 years · 7% per year
💬 In Plain Words
If contributions keep going at Tk 30,000/mo from now (age 35) until you are 60, you could have about Tk 3,00,27,569 by the time you retire — this is on top of any Universal Pension. Of that, Tk 1,00,00,000 is contributions and the rest, Tk 2,00,27,569, is return the money generated on its own. Under the "4% rule" that could support about Tk 1,00,092/mo, before the Universal Pension Scheme pension.
| Age | Balance |
|---|---|
| 40 | Tk 35,65,412 |
| 45 | Tk 72,02,206 |
| 50 | Tk 1,23,57,816 |
| 55 | Tk 1,96,66,539 |
| 60 | Tk 3,00,27,569 |
This projection estimates only your own retirement saving — it does not include the Universal Pension Scheme, which is voluntary and pays from age 60. Assumes a constant nominal return. Check your pension-scheme projection with your provider and talk to a licensed financial adviser before deciding.
How the Calculator Works
👋 Simple Explanation
In Bangladesh the Universal Pension Scheme (see the Universal Pension calculator) pays a lifelong monthly pension from age 60 based on what you voluntarily contribute. There is no automatic contributory state pension for private-sector workers, so most people have to build the rest themselves through an approved pension or retirement scheme, unit trusts, shares or property. This calculator estimates that self-funded layer only, not the state pension.
The calculator combines two formulas: the future value of your current balance (growing at the expected return) and the future value of your ongoing monthly contribution.
FV = P × (1+r)ⁿ + PMT × [(1+r)ⁿ − 1] / r
Where P = current balance, r = monthly return (annual ÷ 12), n = months to retirement, and PMT = the total monthly contribution. The estimated monthly income uses the 4% withdrawal guideline: annual income = 4% × final balance.
How to Strengthen Your Retirement Saving in Bangladesh
Use the tax break on approved schemes. Contributions to a recognised provident fund or the Universal Pension Scheme or another approved retirement scheme (ARS) are tax-deductible up to a limit — that is an immediate return through lower PAYE. If your employer offers a matched pension, contribute at least enough to get the full match.
Watch fees and beat inflation. Compare the management fee between unit trusts and pension funds — a percentage point a year compounds heavily over decades. Aim for a mix that has a real chance of beating Bangladeshi inflation over the long term, not just a savings account.
Start as early as possible. Time is the most powerful variable. Starting small in your twenties beats starting large in your forties, because the early contributions compound the longest.
Frequently Asked Questions
- How much should I save for retirement in Bangladesh?
- There is no single figure — it depends on how much you spend and how many years you expect to live off your savings. A common rule of thumb (the '4% rule') suggests capital of about 25 times your annual spending can support withdrawals for around 30 years. There is no universal contributory state pension for private-sector workers; the voluntary Universal Pension Scheme and your provident fund and gratuity are what you build, so nearly all of your retirement income has to come from your own saving. This calculator estimates that layer.
- Does this calculator include the Universal Pension?
- No. The Universal Pension Scheme (Jatiyo Pension) is voluntary — you choose a monthly contribution and it pays a lifelong monthly pension from age 60. This calculator projects your other retirement saving — a provident fund, mutual funds, Sanchayapatra, property. Add the two together for your total retirement income.
- What can I use to save for retirement in Bangladesh?
- A recognised provident fund through your employer, gratuity, and the voluntary Universal Pension Scheme (Jatiyo Pension) — contributions to a recognised fund and the pension scheme get a tax rebate. Beyond that, mutual funds, DSE shares and National Savings Certificates (Sanchayapatra) are common. Property is also widely used. Fees, discipline and time in the market matter more than picking the perfect product.