Imagine yourself, lying on the golden sands, a cold drink by the side, thinking of nothing else but leisure. Would it not be great to retire to such a life? But between you and those dreams lies a big question: How much money will you need to live a comfortable retirement?
Stop stressing! Figuring out your retirement needs isn’t rocket science. It is like planning a road trip. You wouldn’t just get in the car and drive, right? You’d check the distance to see how much gas you’ll need. Calculating your retirement corpus follows the same idea. It’s like figuring out how far away your dream retirement is in terms of savings, so you can plan how much to set aside each month.
Prepared to leave behind the uncertainty and start on the path towards retirement without worries? This blog will demonstrate How to Determine Your Corpus Using a Retirement Calculator – the number that will support your retirement years. Strap in; it’s going to be a comfortable journey!
What is a retirement planning calculator?
As mentioned above, when planning for a road trip you just don’t proceed like that, without any planning. You select a destination, check the prices of the hotel, confirm your bookings, and figure out your commutation and only then can you ensure an enjoyable vacation. A retirement corpus calculator works similarly for your future! It is a tool that assists in calculating the amount of money required for a secure retirement. Similar to proper planning beforehand, the calculator provides an estimate of the “financial distance” to your retirement objectives. When entered with a few inputs, you will exactly know the amount you should start investing for a pleasant retirement.
How can a Retirement Calculator be beneficial for you?
A retirement calculator can be beneficial to you in not one but many ways. Let’s elaborate on a few of those benefits :
- Empowers Smart Investing Decisions: Through the Retirement Calculator, the entire process of estimating the corpus and the amount you need to invest on a monthly basis to reach that corpus are made quite easy and simplified for you.
- Tracks Your Progress: Similar to how a wristband is useful in encouraging people to watch their health and a fit lifestyle, a retirement calculator assists one in observing the progress of the investment for the retirement period. This tool assists anyone to get an insight into the difference between their ideal state and their current position and address that.
- Provides Peace of Mind: Planning for retirement can be stressful. This stress is eased by a retirement calculator as it gives you a clear working plan on how to go about it. Also, the certainty that everything is going as it should and that you have your future figured out. It can indeed bring a great sense of relief and it is possible to be as happy as one can be, while not being too anxious about what tomorrow may bring.
- Sets Realistic Goals: It is perfectly okay to have dreams of living out your early retirement in a lavish manner, but there is a need to set your targets and aims as per your abilities to earn and your financial capacity. By using an interactive approach, the calculator allows you to evaluate your current financial position and get a realistic target to save enough for a comfortable retirement.
Working of a retirement planning calculator explained!
If you were to think of your retirement savings as the piggy bank you used when you were a child. Like you created that piggy bank to maybe save for a favourite toy or candy to buy as a child, retirement plans can help you lead a comfortable and dreamy life post-retirement. To calculate that amount, you need to enter certain details like your current age, the age at which you want to retire, your current monthly expenses, your savings, and liabilities.
After you have given all the above information you will get the suggested amount you should save each month to meet your retirement goals.
Let us take an example to make things clearer on how this works. Let us assume you are currently 30 years old and wish to retire the moment you clock 60 years. Your current expenditure is approximately Rs. 40,000 per month, and you already have Rs 2,00,000 for investments, out of which Rs. 5,000 are invested in the shortlisted SIP each month. To help contextualize things just a bit, let us assume that you will be receiving a pension till the age of 80 years, and all your investments give pre-retirement returns of 12% and post-retirement returns of 10%. Such a scenario, combined with a 6% average inflation rate, leaves you with a monthly cash deficit of Rs. 5,000 per month to gather the necessary amount of Rs. 1.76 crore to manage your spending in a month which ideally should cost you around Rs. 2,30,000.
How to use the BFC Capital’s Retirement Planning Calculator?
Since we have talked so much about Retirement Planning calculators above, you might be wondering where you can find one. Well, fret no more! Our BFC Capital’s Retirement Planning calculator is all set to act as your personal financial wizard. On the homepage of BFC Capital, click the Planning & Solutions tab at the top of the page and then click Retirement Planning Calculator from the dropdown list. After that, you are required to give details like your age, desired retirement age, monthly needs, inflation rate, monthly contributions, current balance, expected returns before and after retirement, and retirement longevity. And that’s pretty much it! The calculator will reveal the prospective future amount of your saved money.
Advantages of using BFC Capital’s Retirement Planning Calculator
BFC Capital’s Retirement Planning calculator goes beyond a simple estimate. It becomes a valuable tool for planning your financial future with clarity and confidence. Following are a few of its advantages:
- Our calculator has a very simple and user-friendly interface, making it simple to navigate for all users, regardless of financial expertise.
- The Retirement Planning calculator helps you derive precise outcomes and avoid the hassle of manual calculations.
Conclusion
Your retirement does not have to be some mystery. Instead, you can set a realistic approach with the help of a reliable retirement planning calculator. If you have gone through the entire blog post, you can decipher how much a simple tool can help you achieve your post-retirement objectives and make your planning so much easier.
So don’t rely on long and time-consuming manual calculations; instead, take control in your own hands and be best friends with a retirement planning calculator.
Save with joy!
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Also, check out our recent post on: “Difference Between SIP, STP, SWP Mutual Funds Investment options“
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Disclaimer – This article is for educational purposes only and by no means intends to substitute expert guidance. Mutual fund investments are subject to market risks. Please read the scheme related document carefully before investing.
