Current Monthly Expenses (Excluding EMIs,Children Tuition Fees, Taxes etc)
The Post Retirement Monthly Expenses Would Be ₹ 57,000
The Amount Required at Retirement Would Be ₹ 92,52,478
Montly Investment For 20 Years
Total Investment For 20 Years
Total Investment (₹ 30,000)
Retirement Corpus (₹ 100,000)
Whatever age you are at now, one day you would surely have to retire from your job or the hectic work schedule. And given that, ensuring a steady income flow post retirement must be your greatest worry. However, with careful planning and right investment you can get rid of this worry. Now, you can make a financial plan to lead a secure and comfortable life after retirement with the right amount of savings that will take care of your post retirement expenses. To make a head start and efficiently plan your future, you can rope in the help of “a Retirement calculator”.
A retirement planning calculator can be of great use in meticulous planning of long term finances. It can be beneficial in achieving financial goals and involves analyzing financial objectives, current financial position and expected future cash flow.
You can take the benefits of a retirement planning calculator and retirement fund calculator and can easily calculate funds on your own.
Most people think that it is too early to plan for their retirement. But a retirement need not be something that can happen only when you are 60, many people can take an early retirement and enjoy life thereafter with enough savings to last a lifetime or perhaps you may start your dream business post retirement. So, it is never too early or too late to plan your retirement. All you need is a retirement plan calculator! This is your own online financial calculator to calculate your future fund requirements. So a retirement planning calculator calculates the corpus you require to accumulate by the time you get retired or take semi-retirement mostly in different stages of your life.
Retirement calculator is an online tool helps to calculate retirement corpus and how much money do you need for your goals. Retirement calculator requires basic input from your end such as your retirement age, life expectancy, inflation, expected returns on investments, time of retirement and present expenses etc. If you wish to live better lifestyles of what you are earning today after retirement, retirement benefits calculator would be the best tool to calculate your wealth.
A retirement calculator offers tremendous benefits that you can realize after thorough understanding and use thereafter.
Here is an introduction to short, feasible and easy steps to use retirement calculator from Budwisefunds:
1. To calculate your Retirement Corpus, you have to put in your current monthly expenses excluding EMIs, Children Tuition Fees, Taxes, etc. Give your Current Age, Retirement Age, rough idea of Inflation Rate and get the amount you would need at the time of Retirement per month.
2. To calculate the total amount required at the age of retirement, give your Life Expectancy and expected rate of return to get the net amount required at retirement.
3. The Budwisefunds Retirement Calculator will also show the amount you will need to invest every month from now on to reach your retirement goals.
4. It will also show your total investment done in the savings years.
5. Besides, it also gives a graphical representation of your investment and maturity value from current age to the expected retirement age.
6. The net wealth gained over the period of time is also represented graphically.
7. The Retirement Calculator by Budwisefunds answers all your queries regarding retirement planning and helps you to make wise investments.
The calculator takes into consideration
• Your current age
• When do you intend to retire
• Expected life expectancy
• Present monthly expenses you incur
• Expected inflation rate
• ROI that you expect
Finally, it gives a calculated amount you need to invest monthly, so as to maintain your expected standard of living post retirement!!!!
Since India has a large working population standing at second largest in the world, there are a great number of Indians working in the informal category having no or very less retirement benefits. Most of the retirement benefits for employees are governed by practices in the industry or norms followed over long periods. However, the Law ensures that schemes such as Gratuity and Provident Fund help the employees in securing their future. Superannuation schemes and pension plans help to enhance employee future security.
Employers have a critical role in ensuring a secure income for employees post retirement. The superannuation schemes have been designed to create a fund or trust that accumulates a corpus over the years contributed by employers. Approved by income tax, this corpus can be used to buy periodic income or pensions for employees. This is highly beneficial retirement scheme that grows as the employee continues to work creating a huge corpus at the end when it is time to retire.
These plans fall into two kinds- Defined Benefit and Defined Contribution Plans.
Defined Benefit Pension Plan is based on the final salary drawn by the employee and takes into consideration the tenure of the employee in service and dearness allowance. Based on these, the benefit is calculated.
Defined Contribution takes into consideration the base salary, a fixed percentage of which is contributed towards a fund. The interest earned thereof is also added to the corpus which at the time of retirement can be used to purchase annuity.
These schemes help to save taxes and ensure that employees receive a large corpus at the time of retirement through employer sponsored schemes and enjoy their post retirement life in the absence of regular salary.
Apart from this there are several tools available to retire rich in INDIA. These include
• Mutual Funds
• Public provident Fund (PPF)
• Atal pension Yojna (APY)
Systematic withdrawal plan is a service offered by mutual funds, which is an excellent tool in retirement planning. This provides a specific amount of payout at fixed time intervals, like monthly, quarterly, half- yearly or annually. There is a strategy which anyone can adopt by investing a certain sum that may be your retirement corpus in a mutual fund depending on your financial goals and risk appetite. These may be equity or debt based schemes of mutual funds and you can initiate SWP. This will be generated by selling of your mutual fund units.
To plan effectively investors can use SWP calculators. Retirement Calculator India can provide you with the monthly amount you’ll need to withdraw and also help you to determine how much you need to save during your working years to reach your goal.
If you are are going for a retirement planning then opting for SWP could be your best bet.
HOW SWP HELPS THE INVESTORS DURING RETIREMENT PHASE:
1. Mutual fund SWP and Regularity: This provides a fixed amount at a pre- determined time interval. The fixed amount is to be repaid to the investors at a fixed interval by redeeming the appropriate units from the fund.
2. Taxation of mutual Fund SWP: The taxation will depend upon the type of scheme in which the retirement corpus has been deposited. Each withdrawal will be treated as booking of capital gains if any.
3. Inflation protection through mutual fund SWP: This scores best in terms of generating returns to keep up with inflation as only a fixed amount is withdrawn and the remaining capital is invested for gains.
Pension is a form of monthly income which one receives after retirement and is usually offered by Government organizations and large companies. Under a pension plan, a certain amount based on a number of deciding factors such as salary and years of service, is deposited to a fund from which monthly pension is released post retirement.
The Government offers various saving tools such as PPF and NPS among which NPS is specifically for retirement while PPF can be used for serving other purposes also. Both the schemes NPS and PPF are popular among investors who are looking for long term capital appreciation and tax savings respectively.
PPF encourages savings and can also be treated as one’s retirement corpus. NPS on the other hand is especially for retirement purpose and open for public and private sector employees, also including unorganized sector but not the Armed Forces. NPS offers the advantage to choose your investments among government securities, equity funds and other fixed income instruments. At the end, you have to invest atleast 40% of the corpus in annuity scheme if the total maturity amount is more than 2 lakhs.
Pension plan helps to put some amount out for your post retirement and older age. Save little from the income you earn periodically during working life and get income later on. Take best pension plan / retirement plan as this will support you when you are retired.
PENSION PLANNING has two stages:
Accumulation Stage: Investor will pay annual or monthly premiums
Vesting Stage: On reaching retirement age, person will start receiving annuities until death or till the corpus lasts.
Q1. Can I plan my retirement with the help of mutual funds?
A. Most banks have a minimum of Rs. 500 per month but in mutual funds, you can start with as low as 100 per month.
Q2. How can I receive monthly pension in case of mutual funds?
A. In order to receive monthly pension one can opt for SWP i.e. systematic withdrawal plan.
Q3. How much corpus should I target in order to receive monthly pension of Rs 50000 for next 20 years.
A. One has to invest Rs 6,017,566.02 @8% in order to receive Rs 50000 every month for the next 20 years.
Q4. What is best time to opt for a SWP?
A. The best time is when your regular income stops.
Q5. How long will a SWP last?
A. It depends upon how big your piggy bank is to start with and how much a withdrawal is.
Q6. Will I be able to withdraw lump sum amount from the mutual fund scheme from which I have initiated SWP?
A. Yes, you can withdraw lump sum amount anytime but do keep in mind that the number of monthly installments you can withdraw thereon will fall accordingly.