Retirement

Retirement calculator helps you to calculate the corpus you would need to accumulate to maintain your present/desired lifestyle during retirement. It considers various factors such as current age, inflation rate, retirement age, life expectancy, current expenses and expected rate of return. Retirement calculator provides useful estimates as they are based on assumptions and projections, and actual results may vary due to changes in financial markets, personal circumstances, and other factors.

The Calculator allows you to explore diverse permutations and combinations, helping you determine the retirement corpus through various options. The calculator considers the following factors:

• current age
• inflation rate
• retirement age
• current monthly expenses
• expected rate of return post-retirement
   

Once you enter the details, the calculator will display years to retirement, monthly expense at the age of 60, retirement corpus required and monthly SIP and Lumpsum required to achieve retirement corpus at different rate or return.

Like many phases of life, retirement too carries a few uncertainties. While the uncertainties may look similar to what you may have encountered in the earlier phase – inflation, health care, investment risk, etc. their impact may be much greater, and the flexibility to adjust to them may be much smaller during your retirement. Some of the key risks are:

• Inflation –Inflation sinks your purchasing power. Many times, we do not realize inflation in the short term but in the long term, it may wipe out your retirement savings.
• Longevity Risk - People are living longer today than at any point of time in history. Advances in medicine and technology have had an impact on ageing within our society.
• HealthCare Uncertainties - Inflation on health care costs coupled with living longer in retirement may create a havoc on retirement, if not properly managed.
• Investment Risk - The key to wealth creation is asset allocation. Being too conservative, you may not realise your retirement goals or you may run out of money after retirement while being too aggressive you are exposed to market volatility.

To determine the required retirement corpus, the initial step involves understanding the time remaining until your retirement. Although the official retirement age in India is set at 60 years, you have the flexibility to opt for early retirement. Opting for early retirement, however, necessitates a larger fund to sustain an extended post-retirement period, given the shorter accumulation phase for your retirement corpus. Commencing your retirement planning journey at the earliest is advisable to facilitate the gathering of sufficient funds within a limited timeframe. Here, a Retirement calculator may help you to calculate the corpus you would need to invest to maintain your present/desired lifestyle during retirement.

Starting to invest early creates a rewarding habit. If you are not saving, it’s time to get started. Make saving for retirement a priority. Devise a plan and stick to it. You may target a specific amount of corpus for your retirement and plan your monthly investments accordingly.

In the current financial landscape, mutual funds have gained widespread popularity among a diverse range of investors like you. The appeal lies in their ability to facilitate investment across various asset classes, sectors, and securities, thereby promoting portfolio diversification and serving as a safeguard against market volatility over the medium to long term. Beyond general investment avenues, mutual funds can play a crucial role in retirement planning. There are specialized solution-oriented schemes within Mutual Funds tailored specifically to meet retirement needs. Depending on individual risk tolerance and time horizon, you can explore options such as Equity Funds, Hybrid Equity, or Hybrid Debt plans, as offered by the Retirement Oriented Funds.

Mutual Funds can be tailored to specific retirement goals, from systematic investment in your pre-retirement years to your upcoming post-retirement period through systematic withdrawal.

Depending on your risk tolerance and time horizon you can consider the following benefits:

• Diversification
• Professional Management
• Flexibility
• Transparency
• Systematic Investment
• Risk Management