Retirement Calculator

Retirement is a phase of life that should be enjoyed to the fullest, minus responsibilities. But this can only happen if you plan for it wisely.

To help you understand how much to save for retirement, the retirement calculator is your best bet to plan your retirement. This helps you understand which retirement plan suits you the best. A retirement planning calculator will show up a precise amount that you need for your retirement years.

Calculate How Much Do You Need When You Retire

An online retirement calculator might be helpful in such a case. This online calculator lets you know how much money you'll need to put away each month to create your envisioned retirement fund. Entering your current age, expected retirement age, projected retirement corpus, and current savings into a retirement planning calculator yield this figure. The retirement calculator is available online and doesn't cost anything. You can use the online tool indefinitely to determine the most effective means of accomplishing this crucial life goal.

Why is having a Retirement Plan Important?

To ensure independence and financial stability in your senior years, you must have a retirement fund handy. In India where social security and retirement benefits have a weak structure, it is important to have a well-planned retirement fund to maintain your standard of life.

Inflation or rising costs is another factor in creating your retirement plan. If your savings and investments cannot beat the inflation, you have to compromise your lifestyle after retirement. However, if you start investing early, you can take advantage of compounding to create a huge corpus amount that will allow you to enjoy your current lifestyle without sacrificing your health and way of life.

Financial independence is always what an individual seeks for. Even though you may feel you will get financial support from your children, it is better to always keep yourself ready to face financial requirements on your own. Using a retirement corpus calculator enables you to easily understand how much should be saved and what amount can be considered every month to not hinder current as well as future lifestyles.

How to use the HDFC Life Retirement Calculator?

The HDFC Life retirement planning calculator is an easy-to-use tool that gives you the annual income you need in your retirement in India, so that you have adequate time to build your savings. At the same time, the best retirement corpus calculator can help you maintain your lifestyle even in retirement.

Here is a step-by-step guide for using the retirement calculator:

1. Add your personal details, including your current age and when you plan to retire 

2. In the next step, add your income details including your annual income and income growth rate

3. Fill in your investment details in the online retirement calculator

4. Lastly, key in your expenses

Finally you will have the summary on the last screen.

The retirement planning calculator by HDFC Life shows you everything from the amount you need to fund your retirement, how much your current savings will grow to, and the additional amount you need.

Advantages of Retirement Planning as per Age

Retirement calculator is a powerful tool which can help you to plan your investments based on your age. It is important to understand that while planning your retirement investment, your age plays a crucial role and decisions have to be taken accordingly. Below are the advantages of retirement planning based on different ages (considering your retirement age is 60):

• Retirement Planning in Your 20s
  
  

  It is always better to start your retirement planning as early as possible. If you start early, you will get more to save. Therefore to create your desired wealth you have to invest a lesser amount. If you have a fixed source of income in your 20s, you must start investing for your retirement fund.
  
  Generally at this age, an individual doesn’t have to take responsibility for the family. So, it is the ideal time to save a bigger portion of your income. As you are just getting some amount in your hand, you should be careful to avoid any unnecessary expenses. Therefore, you can easily invest 30% - 40% of your income.
  
  As you have 40 years to invest, you should invest in financial instruments where you can get the benefit of compounding such as mutual funds, stocks, etc. Moreover, with the help of different retirement calculator in India available online, understanding the amount to save and compounding the retirement fund in your 60s will be very easy.

• Retirement Planning in Your 30s
  
  

  Are you planning to start your retirement in your 30s? No tension. It is not too late for you. At this age, an individual usually gets a higher salary as compared to their 20s. But with increased income, you have some mandatory expenses to fulfil your responsibilities towards your family. 
  
  However, you still have 30 years to create your retirement fund. You should invest at least 15% - 20% of your income at this age. If you want to increase your monthly savings plan or investment amount, you have to create a monthly budget to identify your required and unnecessary expenses.
  
  At this age, you must also start with an individual or family health insurance to secure yourself from high medical expenses. Then you can save your money across both risky and risk-free financial instruments. You can use a retirement planning calculator and understand how much should be saved and invest your money in places accordingly. Some popular investment options for this age include– FD, RD, MIS, Gold, Annuities, Mutual Funds, Stocks, Bonds, etc.

• Retirement Planning in Your 40s
  
  

  If you are planning your retirement in your 40s, you have 20 years left to create your retirement fund. At this age, you will get a higher salary but you have more responsibilities, debts and expenses.
  
  As you have less time, you have to save a higher amount every month to fulfil your financial goals. To do so, firstly, you should start to pay off your debts as soon as possible and this will help you to contribute more for your retirement.
  
  At this age, you must invest at least 15% of your monthly income and save a lump sum amount when you get a bonus or increment from your company. Do not rush only for safe investment options, try a mix of both risky and non-risky financial instruments to increase your investment by the time you retire. Using a retirement calculator will come quite handy in such cases.

• Retirement Planning in Your 50s
  
  

  If your age is 50 and you still do not have any plan for your retirement, you are in a high-risk zone. You should immediately think about your retirement planning with the help of a retirement calculator.
  
  At this age, your salary becomes all-time high, but you have only 10 years to create your retirement fund. Make a budget and stop unnecessary expenses immediately. Clear all your debts as soon as possible.
  
  As per experts, you should invest the maximum portion of your money into risk-free investments. But if you have proper knowledge you can also choose market-linked investment options.

Impact of inflation on retirement savings

As time advances, the rise in inflation can ultimately lead to the malfunctioning of retirement funds. One has to examine how savings for retirement are to be funded both currently and in the future, as inflation is an important issue when planning to save for retirement, even though usually the amount of accumulated funds in retirement is the target figure.

In the case of inflation-imposed consequences on retirees, retirement plans and investment approaches would be more appropriate if they included inflation-adjusted growth assumptions.  Stocks and real estate have a history of outperforming inflation, so investing in them with your retirement funds will give you more purchasing power over time.

Another option for retirees looking to keep their income up with inflation is to consider inflation-indexed securities or an annuity. If you want your retirement savings to last, review your plans frequently and make changes depending on your expectations for inflation.

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