About Retirement Calculator & FAQs
Why is retirement planning crucial?
Retirement planning is essential to ensure you have sufficient financial resources to maintain your desired lifestyle after you stop working. It helps cover living expenses, healthcare costs, and leisure activities without depending on active income.
What is a retirement corpus?
A retirement corpus is the total sum of money you need to accumulate by the time you retire. This fund is intended to generate income to cover your expenses throughout your post-retirement years, factoring in inflation.
How does this Retirement Calculator work?
This calculator estimates your annual expenses at retirement (adjusted for inflation), the total retirement corpus needed, and the monthly savings required to build this corpus. It also provides yearly projections for savings growth and post-retirement fund depletion.
How does inflation impact my retirement planning?
Inflation erodes the purchasing power of money over time. Effective retirement planning must account for inflation to ensure your corpus doesn't run out prematurely. This calculator incorporates an expected inflation rate.
What are "expected return pre-retirement" and "post-retirement"?
Pre-retirement returns are what your investments earn while you are accumulating your corpus (often higher-growth). Post-retirement returns are what your accumulated corpus earns after you retire (typically more conservative).
What does "Life Expectancy Post Retirement" mean?
This refers to the number of years you expect to live after you retire. For example, if you retire at 60 and expect to live until 90, your life expectancy post-retirement is 30 years. This duration is crucial for determining how long your retirement corpus needs to last.