You should never take your retirement planning for granted and always beware of the traps of your neglected retirement planning.
You should start saving NOW for your retirement because earlier you save a higher amount of retirement corpus you will get post-retirement.
This calculator will allow you to calculate the corpus to live your dream retirement.
Let’s take some examples to elaborate its usage for you.
Mr. Anbarasu is a 28-year-old software engineer works in Chennai. He is planning to retire early, at the age of 45 years. According to his rough estimate, he would require Rs. 3 Lacs per month (today’s value) to live his dream retirement life.
Now based on this idea he is using the retirement calculator to find out his monthly investment to accumulate sufficient retirement corpus, by assuming the inflation rate to be 6% p.a.
He found out that he needs to save Rs. 4,88,002 per month!
No wonder, because he is planning to retire after 17 years and he needs his retirement corpus for 40 years (45 to 85 years)!
In the same example as shown in Scenario#1, now let’s say Mr. Anbarasu wants to retire only when he reaches 60 years, according to corporate rules. To acquire the same amount of Rs. 3 Lacs per month, he wants to find about how much he needs to save per month.
This is what he found,
He needs to save Rs. 1,15,588 per month!
In this scenario we are taking you as an example, let’s say you want to save for retirement only after you are 45 years of age and you retire at 60 years. And, you need Rs. 1.5 Lacs per month your post-retirement life.
Let’s put these values in the calculator, you will find that you need to save Rs.1,91,661 per month to get your desired post-retirement corpus.
In nutshell, you are saving Rs. 2 Lacs (approx.) for 15 years to get Rs. 1.5 Lacs per month for your 25-year long post-retirement!
It is advised to start planning for your retirement early! Because life is unpredictable and there are unexpected and alarming situations that may force you to retire overnight.
So, start saving for your early retirement and you can use this retirement calculator customized with your needs and plans.