Planning for Retirement? Calculate Corpus needed to support your expenses
The Retirement Planning Calculator is quite popular among those who are eager to know about their lump sum requirement post retirement. It is also popularly known as Retirement Corpus Calculator. Such Retirement Calculators are used by major institutions which offer retirement plans such as UTI, LIC, ICICI, HDFC etc. InvestmentYogi provides a very simple calculator for knowing the corpus amount needed to sustain post retirement years.
Why should you use this calculator?
If you are worried about your retirement savings being insufficient to generate the after retirement expenses needed, this one is for you.
How to use this calculator?
The entries to make are:
Years to retireâ€“ Enter the number of years left for you to retire from today.
Ex: If your age is 30 and you plan to retire at 60, your years to retire will be 30.
Years in retirement â€“ It is the number of years that you expect to live after retirement.
Monthly retirement amount requiredâ€“ Enter the monthly expenses you need to live a comfortable life. This value should be as on today and not future value.
Inflation Rate % p.a â€“ It is the average annual inflation rate, which will impact the retirement savings. The default rate is 6%. However, you can enter any other value also.
Return Rate % p.a â€“ It is the rate of return that your investments will generate. By default, this value is 1% higher than the inflation rate entered above.
Once you enter these values and click on calculate, there will be two results. One will be the retirement corpus amount required as on today and other will be the corpus needed on retirement.
When should you use this Calculator?
This calculator is to be used by those who are planning for retirement or have neared retirement. It will help them calculate approximately the amount needed on retirement and hence, plan accordingly.
Can it be used in any other situation?
This calculator is to be specifically used when doing an analysis on retirement. The corpus amount will also help in deciding the amount to be invested from today to achieve it.
Frequently asked questions about Retirement
Some frequently asked questions related to Retirement have been answered in the following articles:
Start young, retire rich â€“ This article talks about the importance of planning for retirement along with the benefits. You would also get a fair idea on methods to calculate how much you would need after retirement.
Guide to Retirement â€“ It talks about various aspects to be considered pre and post retirement. It acts as a guide to retirement planning.