How to plan your post-retirement expenses using a Retirement Calculator India online?

“It is better to live rich than to die rich.” – Samuel Johnson

It is an important life goal for a person to live a great life if not a big life. If you have not planned your finances for your retirement as yet, you need to start ASAP!

In today’s article, we will learn about calculating our expenses now in order to build our financial pool post-retirement. For this, you need to know everything there is to know about the Retirement Calculator India. 

What is a retirement calculator?

Old man calculating his monthly expenses.

A retirement calculator is an online tool that allows you to figure out how much money you will need after you retire from your work. The retirement calculator takes in your personal details like your age and the desired retirement age, along with details of your current income, your savings and investments, and your daily/monthly/yearly expenses.

The calculator aims at giving you a clear picture of how much money a person has to save/invest monthly for meeting their financial goals post-retirement. It takes into consideration all other retirement investments. Then calculates how much more one has to invest to achieve their financial goals.

Retirement is no joke. The financial pool can be stressed up enough when it comes to basic necessities and health care expenses. Old age often stresses your body and we encounter many diseases. 

It is advised to save money before you retire but investing right during the later stage can also work. At times, many people start up their small business or choose other work from home options to maintain their finances. 

There are two important post-retirement planning. The post-retirement plans contain your personal plans and financial plans. Well, your personal plans take care of your standards of living, quality of life, and self-satisfaction. This can be planned out by asking yourself a very simple question. “How would I like to spend my life post-retirement?”

Your financial planning should contain your expenditure based on your personal plans, your expenditure on your basic necessities. Your finances are mostly dependant on your investments, government schemes, and pensions or your post-work returns.

All of this is not as easy as it sounds. That is when the Retirement Calculator India comes into play. The Retirement Calculator India will help you to calculate your expenses and invest correctly for your total financial pool.

How does the Retirement Calculator India help you?

An old couple using the retirement calculator India online.

The Retirement Calculator India helps you to determine how much savings one would need in order to ensure effective post-retirement planning.  However, the retirement calculator India which is available online requires specific details to calculate the retirement collection.

The retirement calculator India that you find online also requires feeding in your monthly expenses such as utility bills, your house rent, house help expenses like your cook or your chauffeur, medicines, etc. 

It further determines the future value of all your expenses. Using the inflation rate, the retirement calculator estimates the future value of the expenditure on your daily expenses.

The retirement calculator also requires your personal details such as your marital status or your city of residence. These details help in understanding the family status and help in designing the post-retirement plan accordingly. 

How does the retirement calculator help you?

Old couple investing in Mutual Funds.
  • Retirement Calculator helps you to calculate how much money you need to save each month to retire with a sufficient financial pool at the end of your working life to begin a well supported post-retirement life. 
  • The retirement calculator will also help you yo determine the precise investment opportunities that are available in which you must invest and gain profits to supply to your financial pool.
  • It will also compare the various retirement options that are available for you and the plans that are most beneficial for your personal and financial planning. 
  • It will help you to plan your post-retirement leisures. The calculator will help you save money for all the plans that you have made.

Best Retirement Investment Plans

Investing for retirement has become a necessity. We all know that the financial pool will decrease with time. In order to supply to the pool, you need to invest right or start with some post-retirement business plans. One has to take care of themselves. Here is a list of the best retirement plans available in the market.

Mutual Funds

Mutual funds are the best investment option available for fulfilling all of your financial goals. Mutual funds are capable of offering significant returns. Investing in equities for retirement is worth all the risk. They help in accumulating the needed financial resources. If one is planning to invest in mutual funds for their retirement, then go for investing in equity funds. 

National Pension Scheme (NPS)

National Pension Scheme is the government of India’s initiative to provide many retirement benefits to all the senior citizens of India. This scheme encourages investors to invest all through their employment years. The returns from NPS are market-linked as a portion of NPS goes to the equity.

Employees Provident Fund (EPF)

EPF is maintained and overseen by the Employees Provident Fund Organization of India (EPFO). This retirement benefit scheme is for salaried employees. Around 12% of the basic salary of the beneficiary is invested in this account. This monthly saving can be used when the beneficiary is unable to supply to the financial pool post-retirement.

Bank Deposits (FDs)

Fixed deposits are the safest investment option available in the market for people in the corporate field. The investment in tax saving FDs qualifies for a tax deduction under section 80C up to Rs. 1.5 lakhs. The returns from these are fixed and are around 5.5-7.percent. These fixed deposits have a lock-in period of around 5 or 10 years.

To calculator your post-retirement expenses online click here to use a Retirement Calculator India.

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