Retirement planning is important aspect of any financial plan.This brief post is about retirement planning and what approximate amount I will require for retirement.
For retirement planning one should take care of following important things:
Time Value Of Money: Inflation have to play a key role in retirement planning.You can use following inflation calculator to know what equivalant amount you will require after said period.
Suppose today I need Rs.20,000/- per month then suppose after 20 years and inflation rate of 6% , we can calculate the amount required per month and it will be Rs.64,142/-
Inflation rate may be approximately in the range 6-8%.
Immediate annuity Calculator:
Then use this calculator which will give an approximate idea what amount you will require to invest in lump sum.
Enter lump sum amount,life expectancy and possible rate of returns.One can assume rate in the range of 6-8% annually
Please remember this value is approximate and much depends upon life expectancy.
One need to remember that not only inflation but it can also be considered that your annual salary or income will also grow with same pace. So don’t worry as much even though you find some scary numbers required for your retirement…isn’t it?
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Also read:
Per month investment required to achieve the target of one crore:
