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.

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.

Benefits of Using a Retirement Planning Calculator

A retirement planning calculator can greatly assist in preparing for retirement financially. Let’s delve deeper into these advantages:

• Financial Openness
  
  

  You can better grasp your financial situation with the help of a retirement planning calculator. Utilising these tools, you can comprehensively understand your financial situation, encompassing your savings, investments, present and future income, and more. All this information in one spot makes comparing your current financial status to your retirement goals easy.

• Making a Plan and Establishing Objectives
  
  

  A retirement corpus calculator is a great resource for figuring out how much money you'll need to retire comfortably when you'd like to retire, and what kind of lifestyle you envision for your golden years. You can visualise these goals with their assistance because they show you how your savings and investments can cover your retirement expenses.

• Evaluate the Current Situation
  
  

  Retirement calculators can also run scenario analyses, which is a great feature. Try different "what-if" scenarios by adjusting retirement age, savings rate, investment allocation, and expected rate of return. Gain greater agency over your financial destiny with this handy tool showing how choices influence your retirement funds and outlays.

• Assess and Manage Possible Risks
  
  

  Retirement calculator in India makes it easy to assess and manage the risks associated with your savings and investment strategies for retirement by providing a quantitative measure of those risks. When making predictions about your retirement, investors consider market fluctuations, inflation, longevity, and the risk of a sequence of returns. This preventative measure will help you prepare for retirement by lowering your risk exposure.

How Much to Save for Retirement?

Estimated retirement savings, a critical background detail for a brilliant financial plan, is a vital activity. Applying may be difficult, but some general rules will be helpful. Here are a few commonly mentioned rules, along with some inflation factors to think about:

• 10% Rule
  

  To ensure success when planning for retirement, the 10% rule means that savings of at least 10% of your income must be saved annually. This rule may be used to explicitly develop a savings habit in you by giving you an effective mechanism to save at the beginning of your career. Thus, you will have financial abundance to live in your old age if you save 10% of your income yearly.
  
  Sometimes, for instance, for individuals who have left family savings until their advanced years or those who aspire to obtain higher income after retirement and would like to know the precise percentage of money they need to put aside for that, the 10% rule might be thought to be not exact, however, it is an excellent point to start. You must regularly check your goals and plan to ensure they align with where you are going in your retirement fund.

• 80% Rule
  

  The 80% principle establishes that on retirement, retirees will need to have about 80% income level that they had before they retire to maintain their standard of living comforts. You might cut your housing and transportation expenses, and after having lost some of the work-related care expenses like commuting, your overall savings will boost up once you retire.
  
  80% rule can be seen as just a general pointer that will help you to understand the more detailed formulas of how much revenue you will need to replace at the retirement stage, there are individual circumstances that could differ considerably. The elderly folks might need to retain more or less than 80% of their pre-retirement income; this depends on whether they will require new healthcare services, have some comfortable lifestyle, or would like to have particular retirement activities. 

• 4% Rule
  

  The 4% rule is an oft-cited rule of thumb for retirement savings plans, assuring a draw-down amount that does not jeopardise sustainability. With this rule, provided the retiree does not blow his savings on a spread over 30 years, he can get a salary of 4% of his savings, adjusted for inflation, every year.
  
  The 4% rule is a reliable guide for income planning, which, when followed by retirees, can lead to precisely the end of the contradiction between temporary income and the necessity to keep the capital for a long time after retirement.

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.

ARN –ED/03/24/9909