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Retirement Planning Calculator is a tool by PNB MetLife to find out how much post-working income you need for the entire duration of your life after you finish active and paid work once and for all.
Using this calculator makes pension planning easier. It helps you estimate how much money you'll need after you stop working. The calculator considers factors like your age, when you want to retire, your yearly income, inflation, and more to give you a rough idea of your retirement needs.
When you start working, retirement might feel far away. You might think saving money each month isn't necessary. But eventually, retirement will come, and if you haven't planned well, you could struggle financially. To enjoy a stress-free life after you stop working, it's important to start saving and investing early in financial tools and best pension plan in India that build up enough money.
A retirement or pension calculator is the quickest and clearest way of finding how much post-working income you need for the entire duration of your life after you finish active and paid work once and for all.
Your current age is very important in determining the type of pension planning and the amount of retirement corpus you can accumulate. Your age will give you a clear idea of how long you want the retirement plan to be and how much your money can compound/grow. Also, starting early gives you a dual advantage of amassing a higher retirement corpus and getting a very affordable deal in premiums. Your desired retirement age is another crucial factor in retirement planning. That age becomes the end date of the retirement plan and shows how much you can accumulate in that period.
Your annual income is crucial in determining the type of retirement planning you can get. Financial capacity decides eligibility, and the higher your income is, the more you can set aside for retirement planning and subsequent saving. Your income will decide if you can set aside 5%, 10% or any other percentage towards retirement planning. Another factor is life expectancy. The life expectancy is around 70 years in India and is increasing every year, thanks to the widespread improvement in healthcare and standard of living.
Inflation is the continuous and constant rise in the price of goods and services. It is an ever-increasing and inevitable process that eats away at the value of your money over time. So, something that cost you ₹100 today could cost you ten times ten years down the line. That is why it is vital to ensure that even the best pension planning helps you beat inflation with the returns it provides. Ideally, look for a retirement plan that provides a minimum of 8% of interested returns.
One of the core steps to successful retirement planning is to understand where your money goes. You must keep a clear track of your monthly expenses and record an approximate of how much goes into utilities, loans, child’s expenditure, education, healthcare, unexpected emergencies, and any other expense you deem necessary.
That way, you can also cut down on unnecessary expenditure. You must also analyze how many present savings and investments you already have. These savings and investments will help you lower the cost of premiums you need to pay towards other investment plans.
This retirement plan provides you with:
This retirement plan provides you with:
This retirement plan provides you with:
This retirement plan provides you with:
This retirement plan provides you with:
Your age and desired retirement age
Your current age is very important in determining the type of retirement plan and the amount of retirement corpus you can accumulate. Your age will give you a clear idea of how long you want the retirement plan to be and how much your money can compound/grow. Also, starting early gives you a dual advantage of amassing a higher retirement corpus and getting a very affordable deal in premiums. Your desired retirement age is another crucial factor in retirement planning. That age becomes the end date of the retirement plan and shows how much you can accumulate in that period.
Your annual income and life expectancy
Your annual income is crucial in determining the type of retirement plan you can get. Financial capacity decides eligibility, and the higher your income is, the more you can set aside for retirement planning and subsequent saving. Your income will decide if you can set aside 5%, 10% or any other percentage towards retirement planning. Another factor is life expectancy. The life expectancy is around 70 years in India and is increasing every year, thanks to the widespread improvement in healthcare and standard of living.
The current and future inflation rate
Inflation is the continuous and constant rise in the price of goods and services. It is an ever-increasing and inevitable process that eats away at the value of your money over time. So, something that cost you ₹100 today could cost you ten times ten years down the line. That is why it is vital to ensure that even the best pension plan helps you beat inflation with the returns it provides. Ideally, look for a retirement plan that provides a minimum of 8% of interested returns.
Your current expenses, savings, and investments
One of the core steps to successful retirement planning is to understand where your money goes. You must keep a clear track of your monthly expenses and record an approximate of how much goes into utilities, loans, child’s expenditure, education, healthcare, unexpected emergencies and any other expense you deem necessary.
That way, you can also cut down on unnecessary expenditure. You must also analyze how many present savings and investments you already have. These savings and investments will help you lower the cost of premiums you need to pay towards other investment plans.
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A retirement calculator is an online calculating tool that helps in financial planning for retirement. It uses an algorithm to help come to an estimate of how much income you will need post-retirement. It also tells you how much money you need to save every month or year to build that successful retirement investment corpus. The retirement planning calculator does this by accounting for economic factors and other factors personal to you. These criteria include:
It uses such parameters to come to an approximate value of how much post-retirement income will be sufficient to maintain your current lifestyle and tackle unforeseen eventualities.
For a peaceful and independent retirement, you require ample finance. This requires timely retirement planning. Here is why you should start planning for your golden years:
Find out latest information and tips on retirement plans from our retirement planning articles.
To calculate the money you need after retirement, you need to use a retirement corpus calculator in India, or a retirement planning calculator. This calculator is an online mathematical and analytical tool that uses a unique algorithm to come to an estimate of how much pension after retirement you require and how much you need to save and set aside per month to reach that amount. For this, the retirement planning calculator assesses various factors like:
You can also do the calculation yourself, but a retirement age calculator or monthly pension calculator simplifies the process for you.
Pension is the amount of money you need or receive after you finish your active working years. It is also known as a retirement corpus - it can be calculated on your own on paper, with the help of a financial advisor, or with a personal pension plan or monthly pension calculator. The easiest way to calculate the post-retirement income you need and which types of pension plans will help accumulate that income is to use a retirement age calculator.
All you have to do is enter personal details like your age, your desired retirement age, your annual income, savings and assets, and your monthly expenses. You also have to add other details like the inflation rate, retirement policy term, desired interest rate of the retirement investment, and anything else asked. Once you specify the necessary information, you only click on calculate, and you will get a clear estimate.
Planning for your retirement early not only gives you discounts on the various types of pension plans available but also lets you reap the most of retirement investment and compounding. Early retirement planning means you are starting at a fairly young age, which leaves enough room for your savings and investments to multiply and grow. Some of the best retirement investments become grounds for reaping high returns, including guaranteed pension plans that give you a regular income flow, government pension plans in India, and the best investment for a retirement lump sum.
Moreover, planning early makes your retirement goals clear and straightens the path to achieve them. You get to understand what type of a life you want and how much income you will need to lead that life.
The amount you need for a stress-free retirement can be calculated in several ways. You can calculate the retirement amount yourself, with the assistance of a financial advisor, or use an online retirement planning calculator tool. The simplest way to calculate your retirement amount is to use a retirement calculator. The calculator will ask for details like:
The retirement planning calculator will take this information and give you an approximate estimate of the income you will need. It will also tell you how much you need to save to reach that amount and what types of pension plans are ideal for you.
To calculate your ideal retirement amount and find the types of pension plans suited to your needs and financial capacity, you can take any of the following steps. You can calculate the retirement amount yourself, with the assistance of a financial planner, or use an online retirement planning calculator tool.
To come to a retirement corpus amount by yourself, note down the following details:
Subtract your monthly expenses with your monthly income. The figure you will arrive at will be the base amount you need every month after retirement. Add some extra percentage to it for unforeseen eventualities. Multiply this value with the inflation rate at the end of your retirement policy term. Multiply this amount with the retirement policy term. That is the approximate retirement corpus amount you need. You can even use a retirement age calculator and save yourself the time taken to calculate it yourself.
Calculating your retirement age is a simple and personal process. Everyone’s desired retirement age is different, but the average retirement age in India is between 60 to 65 years. You can either go with the average retirement age or set up your own ideal age for retirement. The retirement age is crucial in determining how much you can accrue from the various types of pension plans in India. It is also the marker of the duration of your retirement policy – that starts from your current age and lasts up to the desired retirement age.
A good monthly retirement income varies from person to person and is usually the amount of income an individual receives per month in their present. The average middle-class Indian needs around ₹40,000 a month for paying its expenses, saving, and investing. However, due to inflation, the value of money reduces, but the prices of goods and services increase every year.
Taking the average inflation rate of 6% to 8%, the same individual would need around ₹1,50,000 a month in the next 20 or 30 years post his/ her retirement. Eventually, a good monthly retirement income would give retirement benefits that settle your expenses, tackles unexpected emergencies, and leaves enough for leisure.
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