Retirement Calculator
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How This Retirement Calculator Works
Retirement planning is crucial to ensure financial security and peace of mind in your later years. This calculator estimates how much you need to save by considering factors like your current age, retirement age, life expectancy, monthly expenses, inflation, and expected investment returns. It then calculates both the lump sum required at retirement and the monthly savings needed to reach your goal.
Why We Factor In Life Expectancy
Unlike plans that assume you’ll need funds indefinitely, this calculator adjusts for your expected lifespan after retirement. It ensures your lump sum fund covers only the years you're likely to live post-retirement, creating a more realistic and efficient savings plan.
Key Calculations
The lump sum required at retirement is determined by estimating your annual expenses after retirement and calculating how much you need to save to cover those costs for the duration of your life expectancy. This takes into account both the anticipated growth of your savings and the inflation rate, ensuring your retirement fund maintains its purchasing power.
For example, if you plan to retire at 65 and expect to live until 85, your retirement fund is designed to cover your expenses for 20 years.
How We Adjust for Current Savings
We also consider the future value of your current savings, factoring in the compounded returns on your existing investments. This helps reduce the additional savings you need to contribute, making your retirement plan more efficient.
By providing accurate inputs, this calculator helps you plan for a financially secure and comfortable retirement.