Retirement Fund Calculator

Retirement represents that stage in your life when you are no more actively involved in a professional capacity. This means that while your expenses will continue and perhaps rise, your income will reduce drastically. Estimating your financial needs during retirement therefore becomes critical so that you can accordingly plan your finances and savings. In the absence of a retirement plan, one may not be left with sufficient financial resources to provide a comfortable living for the 20-30 years of life when there shall be no or very low income.

Normally, salaried people retire anywhere between 58-60 years of age. For people who run their own business and profession, the choice is very personal. At this juncture, it would be worthwhile to talk about the difference between Retirement and Financial Independence. Retirement is when you do not want to work from a professional angle. This is a personal choice and mostly retirement sets in when one prefers to spend more time with friends and family and not be tied up with any particular professional work. Financial Independence on the other hand is a situation where you have been able to accumulate enough resources to take care of all your monetary dependencies in the future. You may still continue to work but you would not be working primarily for money. You would choose to continue working because you want to work. Therefore, one might want Financial Independence much early in life, but retirement only when one wants to take a break from professional work.

The best way to plan for your retirement is to estimate your financial needs post retirement. This can be estimated by adjusting current expenses for inflation and change in circumstances. You also needs to establish the number of years during which retirement will continue because your retirement corpus will be needed to fund your expenses during retirement. Once the retirement corpus is ascertained, you can work out how much you need to save each month to ensure that your retirement corpus is created. Since this analysis includes some calculations, use our Retirement Fund Calculator to plan for your retirement.

> Enter your current age
> Enter your desired retirement age - This should be the age after which you expect your retirement corpus to fund your expenses. Assume no income during this period.
> Enter your current monthly income and current monthly expenses. The income should include all income that is coming into your bank account including interest income. Expenses should include all cash outflows that will continue into retirement.