Retiring comfortably is a dream for everybody. But why not convert this dream into reality? How? By knowing how to save and invest wisely. To understand how much return of investments you will receive, you can always use the retirement calculator. Doesn’t it make matters simpler, rather than going through those tedious calculations? But, before you embark on the retirement planning journey remember this - planning for the future is a mixture of both fiscal and investment consistency!
Retirement planning is important for each and every citizen, particularly salaried and self-employed individuals. And to aid in this planning, we have created an accurate retirement calculator.
How does Retirement Calculator help you?
A retirement calculator in India plays an important role on several accounts:
- Helping you calculate how much to save on a monthly basis for retiring comfortably, post ending your professional journey
- Helping to determine the key investment opportunities to use
- Comparing various retirement options provided by reliable, competent organisations These days, even publicly-listed entities have specialised retirement-planning sectors for their investors
- Helping you identify, review and compare crucial retirement planning strategies
- Charting a plan to save adequate amounts, if you have any high-value plans post-retirement, including frequent vacations, real-estate investment, etc
- In cases of lack of time, helping you quickly decide on future investment options - optimum for working professionals who are constantly on-the-run
Calculating Retirement Benefits using Our Calculator
The retirement calculator utilises rules of compound interest for determining the total corpus you will have to accumulate for comfortable retirement.
Consider the following illustration:
|Total monthly expenditure ||Rs 30,000|
|Current age||20 Years|
|Retirement age||60 Years|
|Average life expectancy||70 Years|
|Average inflation rate per annum||3 percent|
Based on the formula used in our retirement calculator, the person has 40 more years to remain employed along with 10 years more, post-retirement. Thus, the required corpus is as follows:
- Total corpus needed post-retirement: Rs. 58.18 Lakhs.
- Investing each month: Rs. 3,878
How to use a retirement calculator?
To use the retirement calculator, all you need to do is answer the calculator questions in their designated slot. The calculator would automatically display the corpus amount you need for retirement along with monthly-savings figures.
Advantages of retirement planning calculator
Most online retirement calculators are specially designed to help you determine the precise sums that you need to save on a monthly-basis. By following the calculation, you can build a solid long-term investment strategy and retire comfortably.
In addition to helping build a robust retirement plan, here are some other advantages -
- Easy to use and accurate.
- Helps you to do-away with manual, tedious calculations.
- Standardised formula used for calculating retirement corpus value.
- One-click solution with 2-3 inputs to add.
Retirement Calculator FAQs
You can calculate the retirement by using this simple formula: Expenses = Income - Savings. For example, if your annual income is `10 lakh and you manage to save `3 lakh every year, your current expenses are `7 lakhs a year.
Age, lifestyle, expenses, and your monthly contribution are all taken into account when determining whether to have a financial backup of Rs. 5 crores. It may seem simple to accumulate this sum, but once you start saving, it might be challenging. The optimal time to start saving is while one is young.
The Rule of 25x states, simply put, that if you save 25 times what you would like your annual retirement income to be, that amount might last for 30 years.
The 50-30-20 budget guideline divides a person's monthly net income into three categories: necessities, wants, and savings, with 50% going towards requirements, 30% going towards wants.
Here are five popular investing ideas for retirement that can help you make money.
- Revenue annuities
- approach to total return on investment.
- Real estate investment trusts (REITs) that are traded publicly
- Real estate investment trusts (REITs) not traded publicly
- Income-generating stocks.
Five Typical Retirement Stages and What to Expect
- The period before retirement. Prior to your actual retirement from your profession, you go through a pre-retirement phase that lasts for a number of years.
- The Retired Honesty Period
- The Phase of Disenchantment
- The Phase of Reorientation
- The Phase of Stability