What is Retirement calculator?
A Retirement Calculator is an Online tool to help you plan your retirement by evaluating the Total Retirement Corpus required at the retirement age and the monthly Investment required for building it.
To figure out how much investments you'll need to grow the required pension amount, you can use a retirement calculator. Just keep in mind that preparing for the future involves a combination of smart money management and wise investing. Retirement Calculator is an essential tool for people who want to wisely plan their retirement, INDMoney's Retriement planning calculator does the work for you.
How INDMoney's Retirement Calculator help you in planning your Retirement?
Personalized Projections: Get a clear picture of how your savings will grow over time with our retirement calculator. It provides tailored projections based on your current financial situation and future goals.
Easy-to-Use Interface: Our user-friendly interface makes it simple to input your details and preferences. You don't need to be a financial expert to use our calculator - it's designed for everyone.
Customized Retirement Goals: Set specific retirement goals, whether it's traveling the world, starting a hobby, or simply enjoying a comfortable lifestyle. Our calculator helps you determine how much you'll need to achieve those dreams.
Realistic Scenarios: Explore different investment options and see how they can impact your retirement savings. The calculator considers real-world scenarios to give you a practical outlook on your financial future.
Inflation Consideration: INDmoney's Retirement planning calculator incorporates Inflation as a factor that can effect your savings for the retirement, it estimates the monthly expenditure that will be required in the retirement years by calculating future value of money.
How to use INDMoney's Retirement Calculator?
You can start using the calculator by adding these inputs:
Current Age: Enter the age when you start planning and saving money for your retirement years, this is the time when you start saving and investing towards your retirement goal.
Retirement Age: Enter the tentative age when you plan to retire, you can use the slider to test out various retirement ages.
Life expectancy: Choose an expected age until when you want your retirement corpus to last.
Monthly Expenditure after retirement: Set the amount you want to spend monthly in your retirement years, you don't need to manage the inflation in this one, INDMoney's calculatorwill do that for you.
Retirement Corpus Available: If you have saved money for your retirement before, you may also add that.
INDMoney's Retirement Calculator will work its magic and you'll get these outputs immedietly:
Total Corpus Needed: It's the total lumpsum needed in your Retirement years to spend.
Monthly Investment Needed: This is the monthly amount that you will need to invest while you are saving for retirement.
How does a Retirement Planning Calculator work?
A Retirement Calculator uses formulas of compound interest and SIP to calculate the desired values for you:
Lets understand this with an example:
Let's say you aim for a monthly retirement income of Rs 60,000. If you're currently 30 years old and plan to retire at 60 and a life expectancy of 75 years, our calculator can guide you.
Using the formula: FV = PV (1+r)^n
FV: Future Value
PV: Present Value
r: Expected inflation
n: Time to retirement (60 years – 30 years) = 30 years.
Expected return rate on Investments = 9% (anually)
FFor this example,
The PV = 60,000*12*(75-60) = 1,08,00,000
Calculating Your Retirement Corpus
Now we would have to calculate the future value of this amount, and that will be our retirement Corpus:
FV = 1,08,00,000*(1+6/100)^(60-30) = 6,20,29,705
Monthly Savings for Your Retirement Corpus
Now, we know our goal amount, ie. Rs. 6,20,39,705
The Investment Years = 30 years
Expected Return rate = 9%
Monthly Amount required = ((6,20,39,705*9/100)/ (1+ 9/100)(1+(9/100)^30 - 1))/ 12
= Rs. 34,791
Advantage of Retirement Calculator
Effortless Financial Planning
- Easily plan for life after retirement without the need for complex manual calculations.
Precision in Savings Targets
- Get accurate monthly saving goals tailored to your specific retirement ambitions.
Instant Insights, No Expert Required
- Receive quick estimates without the time and expense of consulting a financial advisor.
Empower Yourself with Knowledge
- Take control of your financial future with a tool that simplifies the process, giving you confidence in your retirement plan.
Using an online retirement calculator offers convenience, accuracy, and the confidence to make informed decisions about your retirement. Start planning today for a secure and fulfilling future!
Frequently Asked Questions
How do I estimate my Retirement Date?
Estimate your retirement date by considering factors like your desired retirement lifestyle, current savings rate, and expected retirement expenses.
How to estimate my Retirement Amount?
Estimate your retirement amount by projecting your future expenses, factoring in inflation, and ensuring your savings can cover those costs.
What are the best Investments to save for my Retirement?
Diversified investments like a mix of stocks, bonds, and other assets can be a good approach. You can also check out Retirement Mutual Funds oon INDMoney.
How often should I review my retirement plan?
Regularly review your retirement plan, especially after major life changes like marriage, having children, or changes in employment, to ensure it aligns with your goals.
How does Inflation affect my Retirement savings?
The absolute value of money decreases with years passing by due to inflation. So, suppose you plan to spend 50,000/month in your years of Retirement now. At the time of your retirement this amount will become 3,80,000. INDMoney's Retirement Calculator adjusts inflation and provides you with accurate savings for your retirement.