RETIREMENT CALCULATOR

Let's understand the meaning of the inputs and outputs of the retirement calculator:

• ■ Current Monthly Expense (Rs.): This input is nothing but the approximate amount you spend to run your household every month.
• ■ Your Age: Your current age
• ■ Retirement Age: The age you wish to retire. Eg. if you want to retire at the age of 45, then you need to provide 45 in this input.
• ■ Life Expectancy: To calculate the retirement corpus life expectancy is required. 'Life Expectancy' refers to the number of years a person can expect to live.
• ■ Est. Annual Inflation Rate (%): Inflation is the rate of rise of goods and services. Alternatively, you can say the reduction of currency value. From an Indian perspective, we can take a 3 to 4% long-term average inflation rate.
• ■ Pre-Retirement Lifestyle Expenses Growth Rate (%): Estimated growth rate of your expenses before retirement on an annual basis.
• ■ Post Retirement Lifestyle Expenses Growth Rate (%): Estimated growth rate of your expenses after retirement on an annual basis.
• ■ Post Retirement Annuity Rate (%): Assume, in the event of your retirement, you are buying a pension plan for retirement corpus. Buying a pension plan with a fixed interest rate is called buying an annuity plan. It's generally a one-time investment that gives periodic recurring cash inflow.