A retirement calculator helps you estimate how much money you'll need for a comfortable retirement and whether your current savings are on track. By entering your current age, retirement age, monthly expenses, inflation rate, and expected returns, you can instantly calculate your retirement corpus requirement and monthly savings needed. This tool is essential for retirement planning and financial security.
The retirement corpus is calculated using the formula:
Future Expense = Current Expense × (1 + Inflation Rate)Years to Retirement
Required Corpus = Future Expense × 12 × Withdrawal Rate Factor
Monthly Savings = (Required Corpus - Current Savings × (1 + Return Rate)Years to Retirement) / Future Value Annuity Factor
Where:
A retirement calculator is a financial tool that helps estimate how much money you'll need for retirement and whether your current savings are sufficient.
Financial experts suggest having 10-15 times your final salary saved by retirement, but individual needs vary based on lifestyle and health.
Key factors include current age, retirement age, life expectancy, inflation, investment returns, and desired lifestyle post-retirement.
Inflation erodes purchasing power over time, meaning you'll need more money in the future to maintain the same standard of living.
The 4% rule suggests withdrawing 4% of your retirement corpus annually, adjusted for inflation, to make it last approximately 30 years.
It's never too early to start retirement planning. Ideally, you should begin in your 20s or 30s to benefit from compounding.
Options include EPF, PPF, NPS, mutual funds, and fixed deposits. Diversification across asset classes is recommended.
It's advisable to review your retirement plan annually or whenever there are significant life changes or market shifts.
Life insurance provides financial security to dependents and can serve as an investment vehicle in certain policies.
Yes, healthcare costs tend to increase with age and should be factored into retirement planning for financial security.