Retirement Corpus

Shape Your Perfect Retirement: Use the calculator to plan a retirement where you can live comfortably, handle unexpected costs, and not worry about money running out. It helps lay down a clear path to a peaceful retirement, exactly how you envision it.

Learn More About Your Money: The calculator helps increase your understanding of the financial aspects that affect your retirement plans. It's a step towards becoming better informed and making smart decisions for a secure future.

Regularly Check Your Plans: Use the calculator to routinely check how your retirement plans are shaping up. It's like a financial health check that helps you stay on track and make any necessary adjustments along the way.

Get Ready for the Long-Term: The calculator helps in planning for long-term financial stability. By showing your likely expenses at retirement and the savings you'd need, it encourages a forward-thinking approach, helping ensure you’re well-prepared for the years ahead.

Physical and Mental Robustness: The ability to continue performing job functions efficiently is often the first factor considered when contemplating retirement. Declining physical or mental abilities can prompt an earlier exit from the workforce.

Declining Health or Disability: For those facing significant health issues or disabilities that impede their work performance, retirement becomes not just an option but sometimes a necessity, allowing for a focus on health and well-being.

Stress Quotient: Professions with high-stress levels can take a toll on one's mental and physical health, often making retirement look like an appealing alternative to preserve well-being.

Cultural Factors: In cultures that place a high value on wisdom acquired with age, retirement is often seen as a transition from a professional role to a more advisory or nurturing role within the family and community.

Modern-Day Dynamics: The changing employment landscape and individual preferences also allow for options like early retirement or 'semi-retirement.' In a semi-retired state, people often opt for part-time jobs or less demanding roles as they transition into full retirement.

Well-Nourished Financial Plan: A carefully crafted and well-executed financial plan can make the transition to retirement smoother, allowing for more freedom and security in one's later years.

Years to Retirement: It helps in determining the time horizon for your investments and savings to grow before you start withdrawing from them for retirement expenses.

Current Annual Expenses: This is the total amount of money you currently spend in a year, including all living expenses, healthcare, leisure activities, and any other personal expenditures. This serves as the basis for estimating your future expenses at the time of retirement, adjusted for inflation.

Expected Inflation till Retirement: This is the annual rate at which you expect the general level of prices for goods and services to rise until the time you retire. A higher inflation rate would require a larger retirement corpus to maintain the same standard of living.

Life Expectancy after Retirement: This is the number of years you expect to live after retiring. It's an essential factor because it determines the duration for which your retirement corpus needs to last. Underestimating this number could risk running out of money during retirement.

Expected Inflation after Retirement: It adjusts the estimated annual expenses each year during retirement, affecting how quickly your corpus will deplete. Similar to "Expected Inflation till Retirement," this is the annual rate of inflation you anticipate after you have retired.

Expected Returns after Retirement: This is the annual rate of return you expect to earn on your investments after you've retired. It should generally be a conservative estimate, as taking on too much investment risk during retirement is often not advisable.

Employees’ Provident Fund (EPF): The EPF is a mandatory retirement savings scheme for salaried individuals in India. Both employees and employers contribute a portion of the salary towards the EPF, which accumulates over time and can be withdrawn at retirement.

Public Provident Fund (PPF): PPF is a long-term retirement savings scheme with attractive tax benefits. Individuals can voluntarily contribute to their PPF accounts, which have a maturity period of 15 years, extendable in blocks of 5 years.

National Pension System (NPS): NPS is a voluntary, long-term retirement savings scheme designed to enable systematic savings. It provides for partial withdrawal and offers a mix of equity, fixed deposits, corporate bonds, liquid funds, and government funds.

Voluntary Provident Fund (VPF): VPF is a voluntary extension of the EPF, where employees can contribute more than the mandatory amount towards their provident fund to secure a larger corpus for retirement.

Senior Citizens Savings Scheme (SCSS): SCSS is a government-backed retirement savings scheme for senior citizens, offering a regular income with the highest safety and tax benefits.

Mutual Funds: Systematic Investment Plans (SIPs) in mutual funds can be an effective way to accumulate a retirement corpus. Mutual funds offer a range of equity and debt funds which can be chosen based on one’s risk tolerance and investment horizon.

Bank Fixed Deposits and Recurring Deposits: Fixed Deposits (FDs) and Recurring Deposits (RDs) are traditional savings instruments which can be used to save for retirement, offering capital safety and guaranteed returns.

Real Estate Investments: Real estate can also be a source of retirement funds either through sale or rental income.

Insurance Plans: Retirement or pension plans provided by insurance companies are also common. These plans provide a lump sum amount to the policyholder at the time of retirement, along with other benefits.

Annuities: After retirement, individuals can invest in annuity plans which provide a regular income, ensuring financial security during the retirement years.

Personal Savings: Personal savings, though not the most efficient due to inflation, form the base of retirement corpus. Having a savings account with a good balance is essential for emergency funds.