How Can A Retirement Calculator Help You Plan Your Retirement?

Retirement is one of the most important stages of one’s life. It is the time when one can be at ease and relax. It is the time to recoup returns for all your hard work and struggles. However, retirement planning is not an easy job. It demands foresightedness, an analytical approach, and critical thinking to make correct decisions.
The retirement Calculator in India is one of the most widely used tools for retirement planning. It allows one to comprehend the intricacies of retirement investment and devise a strategic investment plan.

What is a Retirement Calculator

A retirement calculator is an online tool that aids one in allocating retirement corpus. It helps one to make a definite retirement plan by taking into consideration your current income and expenses. A retirement calculator in India is highly preferred to sort out the amount that one will be requiring at the time of retirement. It enables one to efficiently and realistically plan life post-retirement.

Retirement is complex; it requires careful planning and long-term vision. Personal and financial planning is the major element of retirement. The financial plan of your retirement depends upon several factors such as your current lifestyle, vision, financial objectives and much more.

Retirement planning and calculation will help you to know the tentative amount one must have to enjoy the kind of retirement one envisions. The retirement calculation not only enables you to plan your future but also plays a major role in gauging your current financial status.

The retirement calculator India makes it easy and simple for individuals to plan finances and allocate assets.

How does a Retirement Calculator help in arranging your retirement?

The retirement calculator is user-friendly and made with precision. All one needs to do is just input some basic details such as present age, retirement age, and income to project the speculated costs.

Moreover, the retirement calculator in India may also require one to fill in some more details such as month-to-month expenses, lease details, loans, fuel costs, medication costs, maid expenses, and so on. These details are used to estimate future costs. The retirement calculator uses the swelling rate, inflation, and compounding to calculate the approximate estimate of the expenses.

Apart from the expense, the retirement calculator also takes into account other elements such as the location, and conjugal status while calculating the cost. These subtilities play a prominent role in comprehending the lifestyle and financial status of an individual. Hence, one must make sure to enter accurate details while using a retirement calculator for precise results.

Advantages of utilizing a Retirement Calculator

The advantages of using a retirement calculator in India are as follows:

Retirement Planning
A retirement calculator gives one a tentative idea about the funds that will be needed in post-retirement life. The calculators enable one to channel their finances in order to meet retirement goals.

Enables one to comprehend finances
The retirement calculators give you an estimate of the money/amount that one must save per month to meet the monetary objectives post-retirement. It gives you an overview of your current financial status and eliminates retirement speculations as well.

Action plan
If you are planning something important such as resigning from your job or establishing a new venture then. A retirement calculator can be very useful. The estimation and cost can play a prominent role in designating finances in a different investment instrument.

Retirement Calculator India has simple and user-friendly features. The interface is easy to comprehend. All you have to do is just submit some basic details to arrive at approx. costs/estimates.

Precise and convenient
Manually computing and calculating retirement can be tiring and a tedious process. Moreover, the chances of errors are also high. The retirement calculator makes it easy and convenient. One can estimate the retirement cost with the current expansion rate. The retirement calculator provides accurate and precise results.

Best Retirement Investment Plans

Common Funds
Common funds also known as common assets are one of the best investment instruments. An investor can allocate resources in common funds and enjoy the benefits of compounding in retirement life. SIP plans with common funds can provide one with a great advantage. Shared finances do not have a definite lock-in period. They are flexible, making them an ideal choice for the majority of financial backers.

Public Pension Scheme (NPS)

The Public Pension Scheme is specifically devised to give retirement advantage to an investor. One can contribute to NPS during the work years and reclaim 60% of the fund accumulated in the retirement life. 40% of NPS funds are used to buy an annuity.

Public Provident Fund (PPF)
Public Provident Fund allows one to enjoy tax exemption. One can invest in PPF from Rs. 500 to Rs. 1.5 Lakh. An investor can allocate funds in PPF in lump sums or intervals. The fund invested in PPF can be used post-retirement to meet retirement financial goals.

Employers Provident Fund (EPF)
Employees Provident Fund Organization of India (EPFO) supervises and preserves EPF. This investment and fund allocation alternative is for salaried employees. 12% of employee compensation goes to EPF. One can withdraw the amount post-retirement or as and when needed.

Bank Deposits (FDs)
Fixed Deposits and Recurring deposits are one of the most commonly widely used investment instruments. Though the interest obtained on FD is comparatively low as compared to other fund resources. This is one of the safest and easiest retirement investment plans.

Purchasing real estate or investing in property for investment purposes can be one of the most lucrative retirement investment plans. However, it is important to make smart real estate choices and invest in property with high appreciation prospects.

What are the Best Retirement Plans according to your age?

Well, there is no definite age for planning. The sky’s the limit if you have foresightedness and zeal. Finance planning can be done as early as during the 20s to as late as the 60s. However, what it needs is knowledge of various investment options, inflation rates, and financial objectives.

One can start allocating some amount regularly in strategic investment instruments for substantial returns on investments. However, as you age the amount of money that you can keep aside for retirement may decline due to various factors such as monetary obligations, month-to-month pay, medical expenses, and much more.

The retirement calculator considers your present age and the retirement age to calculate the retirement costs. It gives you a tentative idea about the funds and amount for post-retirement.

CA Mukesh Gupta
CA Mukesh Gupta
Mukesh Gupta is the founder and director of Wealthcare. He is Fellow chartered accountant, Certified Financial Planner and Certified Public Financial advisor. He is in financial services industry since 1994. He conducts free money management sessions for corporates and associations on topics related to Personal finance. His previous engagement was with Birla Sunlife group. He regularly writes on topics related to Personal finance and occasionally appear on electronic media.

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