Retirement Calculator
Plan your golden years with confidence. Calculate the corpus you need for a stress-free retirement.
Corpus Needed at Retirement
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Monthly Savings Needed
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To reach your goal
Corpus Accumulation Path
Understanding Retirement Planning
Retirement planning is the process of determining retirement income goals and the actions and decisions necessary to achieve those goals. It includes identifying sources of income, estimating expenses, implementing a savings program, and managing assets and risk.
Why Start Early?
The power of compounding works best over long periods. Starting in your 20s allows you to build a substantial corpus with smaller monthly contributions compared to starting in your 30s or 40s.
The Impact of Inflation
Inflation is the silent killer of purchasing power. A retirement plan that doesn't account for inflation (typically 6-7% in India) will likely fall short of meeting your actual needs in the future.
Calculation Logic
1. Future Value of Expenses:
FV = Current Expenses × (1 + Inflation Rate)^YearsToRetire
2. Corpus Required:
Corpus = (Annual Future Expenses / Real Rate of Return)
*Real Rate of Return = [(1 + Nominal Rate) / (1 + Inflation Rate)] - 1
Key Components of Retirement Planning
- Current Age & Retirement Age: Determines your investment horizon.
- Life Expectancy: Helps estimate how long your corpus needs to last.
- Current Expenses: The baseline for estimating future needs.
- Inflation Rate: Crucial for calculating the future value of expenses.
- Return on Investment (ROI): The rate at which your savings grow pre and post-retirement.
Retirement Planning Steps
- Set a Goal: Determine the lifestyle you want and the monthly income required.
- Calculate Corpus: Use our calculator to find the total amount needed.
- Start Investing: Choose the right mix of Equity (for growth) and Debt (for safety).
- Review Regularly: Adjust your investments as your income and goals change.