Required corpus after retirement₹
to get income of₹
when invested at % Rate of interest
Savings required per month₹
to build a corpus of₹
at % Rate of interest
Increasing Investment percentage annually helps to achieve targets faster. 10% is suggested.
Retirement planning is financial preparedness for the period post retirement or when an individual stops working. The retirement planning process can begin from the day you receive your first salary. As we all know, inflation can erode the value of money. Therefore, you must invest in avenues that can fetch returns above inflation in the long run. This way, you can have enough finances to enjoy a desired lifestyle during retirement.
Retirement planning includes:
Since life expectancy is continuously rising, you should ensure sufficient money will be available during retirement if you want to avoid dependency on children and relatives for financial needs. It is best to increase and improve retirement-related investment when your income rises. Avoid using the money set aside for retirement as you will miss out on the benefit of compounding.
Fisdom’s retirement calculator is a useful online tool for estimating the approximate future costs of retirement. The calculator helps in simplifying retirement financial planning.
The retirement calculator designed by Fisdom helps you estimate the amount that you must set aside every month as savings to gather the right amount of the retirement corpus.
Fisdom’s retirement planning calculator, within a matter of seconds, will tell you the amount of annual income you will need during retirement, such that you can maintain your current lifestyle.
There are three components of the calculator:
To know the cost of your retirement, enter below-mentioned details in the respective sections:
The calculator will show the required corpus after retirement to earn the desired level of income per month post retirement. Additionally, it shows you the total amount of savings required per month to establish a corpus of the desired amount.
A retirement calculator can have a range of benefits, one of the most important ones is that it gives a clear direction to your future planning. Here are some of the other benefits:
If you want to plan your retirement well in advance, make use of Fisdom’s retirement calculator today. Once you know the amount needed at the time of retirement, you can choose the right investment avenues, like mutual fund schemes, to start building your retirement corpus.
Inflation can diminish the buying power of retired individuals, thereby impacting retirement planning. By building a strong investment portfolio with inflation beating returns and setting a realistic retirement budget, one can deal with the impact of inflation
To invest for retirement such that you have sufficient corpus available for a comfortable retirement life, you must begin your investment journey as early as possible. Portfolio diversification, investing in avenues that offer inflation-beating returns, and allocating a maximum portion of savings to investment are some of the right ways to invest for retirement.
To know the amount of money you will need for retirement, you can use an online retirement calculator. It is important to consider current spending needs and lifestyle while estimating monetary requirements during retirement.
There are different avenues to invest for requirements, like equity mutual funds, National Pension Scheme, Public Provident Funds, etc. Investing your savings in these avenues can help in increasing the corpus by a substantial percentage and ensuring a comfortable retirement.
The 4% rule is used in retirement planning. In this, a retiree who has an investment portfolio comprising 50% each of equity and bonds can outlive the funds if only 4% of the investment is drawn every year, adjusted for inflation. It therefore states that the investments should be long term and must last for 30 years.