How to use the retirement calculator?
Having difficulty filling in the details? We’ve got your back!
How to fill in the primary details:
- Current Age: Enter the age you are right now.
- Retirement Age: Enter the age when you want to retire.
- Current Monthly Expenses: Add an average amount you spend monthly.
- Current Retirement Savings: Enter the current balances of all your retirement savings accounts.
- Current Monthly Contributions: Enter the amount you save every month as part of your retirement savings.
- Step-up: Enter the rate in percentage by which you increase the investment amount annually.
How to fill in the advanced details:
- Life Expectancy: Ideally, your retirement savings should last you throughout your life. Thus, it is smarter to aim higher. We are assuming it to be 85. You can aim for it to be higher or lower.
- Inflation Rate: We have assumed an inflation rate of 3%. You can change it to see how it impacts your retirement savings.
- Investment Return (Pre-Retirement): Enter the rate or percentage of return you expect your investments to provide from now to the time of retirement. We have assumed the rate to be 12%. You can change it as per your needs.
- Investment Return (Post-Retirement): Enter the rate or percentage of return you expect your investments to provide after you have retired. We have assumed the rate to be 10%. You can change it as per your needs.
- With or Without Return of Corpus: This is a drop-down menu where you have to choose any one of the options.
If you choose “with return of corpus” the calculator will consider the return of the initial investment amount (corpus) along with the interest or investment gains when calculating the retirement benefits.
If you choose “without return of corpus”, the calculator will factor in both, the initial investment and the interest generated to determine the retirement income. In this case, the corpus becomes zero by the chosen retirement age.