Retire Rich through intelligent Financial Planning & Financial Management.
Avoid Fixed Deposits & Pension Plans Jun, 2018

In the process of living life for others - don't forget yourself. You will retire one day & you will need funds. Find out how much you will need & how much you have to save for that. Don't DIE poor
Your Age(in years)
Year
Income (in Rs. Per year)
How much do you think you will live upto?
Year
Retirement Age
Year
Inflation
%
Earning returns pre-retirement
%
Earning returns post-retirement
%
Living expenses per month
Current liquid savings

Funds required at retirement ,
Lumpsum Amount you need to have today to get Retirment Corpus when you retire (apart from your current Savings)
Monthly you need to save till your retirement

Introduction

You, yes you have 82% chance of dying poor. Let me give you some figures:

1. Rs.1 lac expense of today will become expense of Rs.7.5 lacs after 30 years
2. You lose Rs.17lacs in interest in 20 years if you just let Rs.10000 stay extra in your Bank account
3. Investing Rs.1000 pm till the age of 60 gets you Rs.65lacs if you start at the age of 25. It gets you ONLY Rs.19lacs if you start at 35.
4. On an average people spend 28% of their monthly incomes on EXPENSES.

I am sure you have made worse financial mistakes than some of the ones shown above. That’s why 82% of the Indians will die poor. We are just not able to mentally calculate how much do we need till the time we die. Spending today won’t help. Investing today will. Whatever we earn in our earning days till retirement, will be used till we are alive. So makes sense that we make proper use of financial management tools available to us to ensure a graceful & wealthy retirement planning.

The need for this Retirement Planning Calculator

Future is always unknown. There are just too many variables. More so when we are talking about a time line as long as our entire life. People should know that whatever fund that gets accumulated at their retirement, that only will be used up during our retirement. You will have living expenses post retirement, they will be covered from this retirement fund that you will accumulate. Start today my friend.

This calculator gives you the retirement fund you will need when you retire.

This calculator gives you the amount of monthly saving & investment you have to do to ensure that you are able to generate that retirement fund.

This calculator also gives you an amount that if you have today, you can keep it aside for retirement and don’t touch it at all.

This calculator lets you know where you stand today so that you can use the expert help of financial experts on the BankerBhai website & RETIRE RICH, you may or may not worry about the pension plans your Bankers are so eagerly trying to sell you.

How to use this calculator

The use of this calculator is very simple. You just have to enter following things:

1.Your age in Years

Why we need this is because we need to know how much time you have before you retire and how much of your life span is still remaining where you would need your retirement funds to come in handy.

2.Income per annum

Oh, just tell us how much do you earn. We will bother you with our calls to sell more financial products like financial planning, loans, insurance etc. No, we need it for you to take a guidance if the output that will come for monthly savings is within your reach or not.

3.How much do you think you would live upto

STAYING ALIVE IS COSTLY. If you think you are in good health and would live upto 90 years, your retirement fund needs to be bigger as it would have to work for more number of years.

4.What age would you retire at

Many people think of retiring early & few think of retiring late. If you wish to retire early, you would have less time to build up your retirement fund. Moreover, the fund would have to be bigger as it would have to work more years to meet your post-retirement expenses till you live.

5.Inflation

Inflation, a necessary evil. We won’t go into explaining why it is necessary but we have taken default value at 7%. If you feel costs would go up further than average 7%, you can increase its value in the financial calculator or vice-versa.

7.Earning Returns Post-retirement

Once you retire, you may go little conservative on where you invest your retirement corpus as you need it to survive on. You may be investing in debt funds or fixed return financial instruments. We have taken its default a bit lower at 10%.

8.Money needed post retirement for living expenses pm

In today’s value, how much would you be typically spending per month on living expenses once you retire? Would Rs.50000 be enough, or Rs.75000? Think of it in current value as if you have retired today. The calculator takes care of the inflation part.

9.What are your current liquid savings

I wouldn’t believe if you would say you have not saved for your retirement. Whatever you have saved, just put its value in.

Output – Output from this calculator is in 3 parts.

First, it gives you the retirement fund you need to have when you retire to see your rest of life comfortably.

Second, it gives you a lumpsum amount that you can set aside TODAY that when invested, will become equal to the retirement fund you need at your retirement age.

Third, because we all are not lucky to have this lumpsum of amount with us, we need to save monthly for the same. The last output of the calculator gives you the amount you need to save monthly till the time you retire to arrive at the retirement fund you need at the retirement. And here come many Bankers, Insurance Companies telling you how investing in pension plans would help you in old age. Trust me, it doesn’t happen like this. Pension Plans ensure a good retirement for your Bankers & not for you.

Now you deserve a break. This calculator was really something. You may now relax by seeing some of the offers by our financial experts on BankerBhai.

How to build up your retirement fund corpus faster?

Simple. Make power of compounding work for you in your favour. And, play as per the merit of the ball.

Power of Compounding – It is very difficult to explain it to non-finance people. The best analogy I can try is a simple game. If I tell you to give me 1 paise on Day 1 of a month and just give me double of that next day and keep on doubling every day. I mean, give me 1 paise on Day 1, 2 paise on Day 2, 4 paise on Day 3 and continue doing this for a month.

On Day 10, you will be giving me Rs.5, on Day 20 you will be giving me Rs.5000 but on Day 30, you will be liable to pay me Rs.53.68 lacs. Yes, that’s the power of compounding. Interest applied to your investments for a longer period generates these kind of mind boggling returns. The more the interest, the higher the mind boggling effect.

Play as per merit – INVEST more & go for more risk (invest in equities) when you are younger. People do complete the opposite. They SPEND more as they say they don’t have to save for anything. Plus their parents or friends ask them to invest in safe instruments like Fixed Deposits. Both things kill your money. As you keep on getting older, then depending on your goals, you have to invest in a mix of products.

Use our ASSET ALLOCATION calculator to find out how to invest depending your age, goal & risk profile.

We have crorepati calculators that tell you how much to invest every month to become a crorepati, if you have fixed a time period to become a crorepati or if you have fixed an investment amount monthly.

I would suggest mix of mutual funds to achieve your strategy of garnering funds faster. Particularly SIP (Systematic Investment Product) of Mutual Funds if used with expert guidance can really benefit you a lot. You can find best Investment Experts on BankerBhai.com

Disclaimer

The data generated herein is completely and solely based on the information/details provided by you in response to the questions specified by the site BankerBhai.com. Such information and the resultant data is provided only for user's convenience and information purposes. BankerBhai.com does not guarantee accuracy, completeness or correct sequence of any the details provided therein and therefore no reliance should be placed by the user for any purpose whatsoever on the information contained / data generated herein or on its completeness / accuracy. The use of any information set out is entirely at the User's own risk. User should exercise due care and caution (including if necessary, obtaining of advise of tax/ legal/ accounting/ financial/ other professionals) prior to taking of any decision, acting or omitting to act, on the basis of the information contained / data generated herein. The information contained / data generated herein may be subject to change, updation, revision, verification and amendment without notice and such information/data generated may change materially.


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