Retirement Calculator

What is a Retirement Calculator?

A retirement calculator is a tool that may help investors approximately calculate the amount of funds required for their retirement. Calculating retirement income may enable investors to start saving and making investment decisions which may potentially help them meet their goals. Investors may identify suitable investment options and select an appropriate amount to invest after considering their age, monthly income, predicted retirement age, life expectancy etc.

Bandhan’s Retirement Calculator can also help investors understand the impact of inflation on their savings and investments. This retirement money calculator allows investors to have an approximate assumption of the funds required to live comfortably after they retire.

Based on the approximate values obtained from the retirement calculator, investors can start a monthly SIP or invest lumpsum across different investment options. Diversifying investments may potentially reduce risk and may allow investors to benefit from the performance of different investment options.

Why Use a Retirement Money Calculator?

A retirement calculator can help investors calculate retirement income. This may allow them to start planning for the future accordingly. A retirement money calculator may be beneficial to investors of several different age groups:

Investors in their 20s: Investors in their 20s may have just started their careers. Although retirement would be a few decades away, investors with extra income may reap the long-term benefits of compounding by starting their retirement fund early.

Investors in their 30s: Investors in their 30s may typically earn more and may have extra income to put aside for retirement. By using a retirement fund calculator, these investors can start investing for retirement and potentially save a significant corpus.

Investors in their 40s: Investors in their 40s may have other responsibilities to tend to. Children's education, familial medical expenses and other responsibilities may reduce the amount they can contribute to their retirement fund. However, maintaining an investment discipline may potentially prove to be beneficial for them.

Investors in their 50s: As they are nearing retirement, investors in their 50s may prefer to contribute a significant amount to their retirement fund. They may seek lower-risk investments that can help generate income in the short-term.

How to Use Bandhan’s Retirement Planning Calculator?

Bandhan’s retirement planning calculator is a tool that is specifically designed to help investors plan for retirement.

• Investors need to enter their monthly expenditure that is expected to follow into retirement.
• Investors then need to enter the average rate of inflation expected for the time of the investment.
• This is followed by entering their current age and the age they expect to retire.
• Lastly, investors need to enter their expected life expectancy, current savings for retirement (if any), and the expected rate of investment growth.

The retirement savings calculator gives an approximate amount that investors may need during their retirement, adjusted for inflation. Investors can also get an understanding of the monthly SIP amount, SIP duration and total investment amount by using Bandhan’s retirement planning calculator.

How to Start Retirement Planning?

Retirement planning is the first step to a comfortable retirement. As the average lifespan is increasing, timely retirement planning may help investors potentially retire early and live a relaxed and comfortable life. Here are some steps investors can take to start retirement planning:

• Set a Retirement Plan: Use a retirement planner to understand future financial goals and set an approximate retirement corpus. A retirement planning calculator can help investors identify the corpus they may require for retirement.
• Establish an Amount for Saving/Investing: Investors must identify the amount of money they may need to retire. It is necessary to consider the average monthly expenditure, expected life expectancy and other factors while arriving at this estimate. A retirement calculator may simplify the process of arriving at this estimate.
• Identify Your Risk Appetite: Risk appetite is a crucial factor to consider before investing for retirement. Investors with a low-risk appetite may consider investing in low-risk funds and diversify their investments to potentially spread out risk. Investors with a higher risk appetite may potentially benefit from long-term equity investments that may be suitable for wealth creation in the long term.
• Choose an Investment Option: There are several retirement investment options to choose from. Mutual funds such as Bandhan Retirement Fund are specifically designed schemes for investors seeking a retirement plan. The fundamental purpose of such a retirement fund is to provide the investor with a potentially steady source of income after retirement. By using a Systematic Withdrawal Plan (SWP), investors can withdraw money on a monthly or quarterly basis. Other investment options for retirement include the National Pension Scheme, Public Provident Fund, Annuities etc.
• Research and Rebalance: After investing it is necessary to check its performance periodically and rebalance the funds according to performance.

What are the Benefits of Retirement Planning?

Using a retirement calculator to calculate retirement income may give investors clarity on the funds required for retirement. Here are some of the benefits of retirement planning:

• Funds for Future Emergencies:

  Investors investing a significant corpus of money in a retirement fund may potentially save enough money to tackle future emergencies.

• Benefit from Compounding:

  Investing in long-term funds such as retirement funds may potentially allow you to reap the benefits of compounding. Compounding is the process wherein, an asset's earnings are reinvested thereby potentially generating returns in the long run.

• Inflation Protection:

  The rising cost of living and increase in inflation significantly increases the amount of money required for retirement. Early retirement planning may potentially enable investors to safeguard themselves against inflation and live a comfortable retirement.

• Tax Saving: Retirement plans may offer long-term tax benefits.

  This may allow investors to save for the future and reap tax-saving benefits.

To get these potential benefits of retirement planning, it is necessary to start early. A retirement savings calculator can help you calculate the approximate corpus of funds required.

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