Retirement planning means preparing for your financial independence after you stop working. It ensures that your future lifestyle remains stable even without active income. This calculator helps estimate how much money you'll need post-retirement considering inflation.
Retirement planning is the process of determining your retirement income goals and the actions necessary to achieve those goals. It involves understanding your current financial situation, estimating future expenses, and creating a savings and investment plan to ensure you have enough funds to maintain your desired lifestyle in retirement.
With this tool, you can adjust your current age, retirement age, monthly expenses, inflation rate, and expected years after retirement to see how much corpus you need to save.
Planning for retirement is crucial to ensure you have enough funds to cover your expenses and maintain your lifestyle after you stop working. It helps you avoid financial stress, allows you to enjoy your retirement years, and ensures that you can handle unexpected expenses.
Future Monthly Expense = Current Expense × (1 + Inflation Rate)Years Left
Total Retirement Corpus = Future Monthly Expense × 12 × Years After Retirement
Where:
If your current expense is ₹30,000, you're 30 now and plan to retire at 60, with 6% inflation – your future monthly expense would be about ₹1.72 Lakh. If you expect to live 25 years after retirement, your required corpus would be around ₹5.1 Crores.
This means you need to save and invest wisely to ensure you have enough funds to cover your expenses for those 25 years.
1. Enter your current age and planned retirement age.
2. Input your current monthly expenses.
3. Set your expected inflation rate.
4. Specify how many years you expect to live after retirement.
5. Click "Calculate" to see your results.
The tool will display your future monthly expenses at retirement and the total corpus required to sustain your lifestyle for the specified number of years after retirement.
Once you calculate your retirement corpus, you can share the results on WhatsApp to discuss with family or financial advisors. This can help you get insights and suggestions on how to improve your retirement planning.
For more information on retirement planning, consider reading articles on financial planning, investment strategies, and inflation management. Websites like Moneycontrol and Moneycontrol Personal Finance offer valuable insights.
Also, consider consulting with a financial advisor to create a personalized retirement plan that suits your needs and goals.
Q: Why is inflation important?
Inflation increases your future expenses, and ignoring it can result in insufficient retirement funds.
Q: What is a safe corpus?
You should save enough to cover all expected post-retirement expenses for at least 20–30 years.
Q: How can I increase my retirement corpus?
Start saving early, invest in diversified assets, and consider increasing your savings rate as your income grows.
Q: Can I adjust the inflation rate?
Yes, you can set the expected inflation rate based on your personal expectations or historical averages.
Q: What if I live longer than expected?
It's wise to plan for a longer retirement by saving more or investing in products that provide lifelong income, like annuities.
Q: How often should I review my retirement plan?
Review your plan annually or whenever there are significant changes in your financial situation, expenses, or life goals.
Q: Can I use this tool for other currencies?
Yes, you can select from multiple currencies like USD, EUR, GBP, and JPY. The calculations will adjust accordingly.