Retirement Planner
Plan your path to financial freedom
Enter Your Details
Calculate your retirement corpus requirement
How Do Retirement Planners Work?
Retirement planners help you determine how much money you need to save to maintain your desired lifestyle after retirement by calculating your retirement corpus, future expenses, and investment requirements. Here's a step-by-step explanation:
Enter Your Current Details
Input your current age, retirement age, current savings, and monthly savings. This forms the base for calculating your retirement corpus. The earlier you start, the more you benefit from compound interest.
Specify Expected Returns and Inflation
Enter your expected annual return rate (typically 10-12% for balanced portfolio) and expected inflation rate (typically 5-6%). These factors significantly impact your retirement planning. Inflation erodes purchasing power over time.
Calculate Retirement Corpus and Requirements
The calculator computes your projected retirement corpus by growing your current savings and monthly investments with compound interest until retirement age. Using the 4% safe withdrawal rule, it determines how much corpus you need based on your future expenses (adjusted for inflation).
Understanding Your Retirement Planning Calculation
Learn how retirement planning calculations work
Understanding Retirement Planning
Retirement planning helps you determine how much money you need to save to maintain your desired lifestyle after retirement. It considers inflation, expected returns, and the 4% safe withdrawal rule.
Formula:
Retirement Corpus = Current Savings × (1+r)^n + Monthly SIP × [((1+r)^n - 1) / r] where r = Monthly Return Rate, n = Total MonthsKey Points:
- •4% safe withdrawal rule ensures your corpus lasts 25+ years
- •Inflation significantly impacts future expenses - plan for 5-6% inflation
- •Start early to benefit from compound interest over long periods
- •Diversify investments across equity, debt, and other instruments
- •Review and adjust your retirement plan annually
Frequently Asked Questions
Common questions about retirement planning
Disclaimer
These calculators are for estimation and educational purposes only. For personalized financial advice, please consult a qualified financial advisor or chartered accountant.
All calculations are based on standard formulas and current tax laws. Actual results may vary based on individual circumstances and applicable regulations.
How Much Money Do You Need to Retire Comfortably?
Retirement planning starts with one key question: how much money will you need after you stop working? The answer depends on lifestyle, expenses, inflation, and life expectancy.
How to Plan Retirement Based on Current Salary
Your current salary plays a crucial role in retirement planning. Planning early helps spread investments over time and reduces financial pressure in later years.
Common Retirement Planning Mistakes to Avoid
Many people delay retirement planning or make decisions based on assumptions. Avoiding common mistakes can significantly improve financial security after retirement.