How much will you need after retirement?
Use this calculator to find the retirement corpus you will require and monthly savings needed to achieve this goal.
Retirement is that phase of your life when you can relax from the monotony of daily life and fulfil the dreams that you have. Given the tranquillity of retired life, retirement is often called the golden years of your life.
However, a retired life can be enjoyed only when you have sufficient funds at your disposal. After retirement your source of income stops but your expenses don’t. You still face lifestyle expenses and your healthcare costs also shoot up. Moreover, if you want to fulfil your bucket list, you need money. This is where retirement planning comes into the picture. Retirement planning involves building up a corpus which would help you meet your financial obligations after you retire. This corpus is built up during your active working life when you set aside funds for retirement. But do you know the ideal size of the retirement corpus?
What is the sufficient retirement corpus?
Having a sufficient retirement corpus is essential if you want your retirement to be financially free. It is the measure of this sufficiency which confuses many. A sufficient retirement fund can be built by taking into consideration the following factors –
- Years to retirement which give you the investment horizon for planning your corpus.
- Current monthly expenses which would help in estimating post retirement expenses.
- Life expectancy to ascertain the time frame for which the retirement fund would be required.
- Inflation trend both before as well as after retirement to calculate the expected expenses which would incur after retirement.
- Expected return on investments both pre and post retirement. Pre- retirement returns would help you ascertain the funds that you already have and post retirement returns would give you an idea of how much return you can generate on the retirement corpus after you retire. The return after retirement would be an additional source of income.
- Current value of investments that you have already done which would help in reducing the total corpus required.
- Current value of the goals which you would like to fulfil after you retire which would help in estimating the funds which would be required after retirement.
Considering all these factors you can arrive at the corpus which would be required and how much investment you should do to create such a corpus.
When to plan for the retirement fund?
here is no ideal age or time to plan for a retirement fund. You should start retirement planning as soon as possible, ideally when you start earning an income. The earlier you start the more investment you can do. Moreover, the requirement of investments would also reduce since returns are higher over longer investment tenures. So, by investing small amounts regularly, you can build a considerable retirement corpus when you start early.
Where should you invest?
Mutual funds are one of the most popular investment avenues for creating the ideal retirement fund. There are various types of mutual fund schemes which you can utilise for creating your retirement corpus. You can start with equity when you are young and gradually increase your debt investments as you age. Mutual fund investments would diversify your risks and also yield attractive returns which would maximize your wealth and create the best retirement corpus for you.
Orowealth’s retirement calculator is an online calculation tool which helps you calculate the exact amount of retirement fund which you would need. When you enter the relevant details in the calculator, you can not only find out the retirement corpus which would be needed, all factors considered, you would also be able to find out the monthly investments which would be needed to create the calculated corpus. Moreover, Orowealth’s team or experts would also help you with your investments so that you can create the best financial portfolio for your needs.
So, start saving for retirement today! Calculate the corpus which would be required and make sure to set aside sufficient funds every month to create the ideal retirement corpus.