How to Use This Retirement Planning Calculator
- Enter your current age, planned time of retirement, and monthly expenses.
- Set your retirement age and estimate your age life expectancy to cover all post retirement years.
- Adjust the expected inflation rate and rate of return (expected return on investment) for both pre and post retirement periods.
- Provide your current retirement savings and any fixed income sources.
- Click Calculate to see the corpus required, your retirement fund, and the monthly saving and investing needed to reach your retirement goal.
This tool helps you plan for a secure retired life by considering all aspects of retirement planning, including mutual funds, fixed income, and other investment options.
Example Scenario
Example: Suppose you are 35 years old and want to retire at 60. You expect to live until 85 (age life expectancy), spend ₹50,000/month, and want to account for 6% inflation. If you expect a 10% rate of return before retirement and 7% after, the calculator will estimate the corpus required for your post retirement years and show how much you need to save and invest each month. You can also factor in mutual funds, fixed income, and other investment options to reach your retirement goal.
FAQs
- What is a retirement fund? It is the total amount you need at the time of retirement to cover your living expenses for all post retirement years, based on your age life expectancy and lifestyle.
- How does inflation affect my retirement? Inflation increases your expenses over time, so your future needs will be higher than today. The calculator factors in inflation to estimate your retirement goal.
- How can I save enough for retirement? Start saving and investing early, use mutual funds or fixed income options, and review your plan every year to stay on track.
- What is the difference between pre and post retirement returns? Pre retirement returns are the expected return on investment before you retire, while post retirement returns are what you expect after you stop working, often from safer investments.
- Is this tool free? Yes, it is completely free and private.
- Can I download or share my results? Yes, you can copy, download, print, or share your results instantly.
Glossary
- Retirement Fund: The total savings you need at the time of retirement to cover all your expenses during your retired life.
- Corpus Required: The lump sum amount needed at retirement to meet your retirement goal.
- Pre and Post Retirement: The periods before and after you retire, each with different investment strategies and expected returns.
- Retirement Savings: The money you set aside regularly to build your retirement fund.
- Age Life Expectancy: The age until which you expect to live, used to estimate post retirement years.
- Rate of Return: The expected return on investment from your savings and investments, such as mutual funds or fixed income.
- Saving and Investing: The process of setting aside money and growing it through various investment options to reach your retirement goal.
- Fixed Income: Investments that provide regular, stable income, often used in post retirement years.
- Mutual Funds: Investment vehicles that pool money from many investors to invest in stocks, bonds, or other assets, useful for retirement planning.
Testimonials
“This tool helped me understand how much I really need to retire. The step-by-step guide is very helpful!”
“Easy to use and the projections are so clear. Highly recommended for anyone planning their future!”
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