How Does Retirement Calculator Work?
As the name suggests, retirement calculator is a tool used in determining the money required to have a stable life in the old age. The tool which is readily available online takes in to account parameters such as age, income, saving, expected age of retirement and inflation before arriving at a numerical value, an indicator of the corpus fund.
Among the various online retirement calculator in India, the most convenient and comprehensive method is adopted by Principal Retirement Advisers.
The Company has broken down the entire procedure in different segments, depending on the expenses incurred at various points of time in life. The simple steps involved in the calculation allow a novice with little or no knowledge in understanding the entire mathematics behind the calculations.
Household Expenses
The first step involved in any kind of financial decision is to calculate the monthly household expenditure. The procedure takes into account money spent depending on the lifestyle adopted by an individual, although they are subjected to change.
Savings Calculator
Upon completion of step 1, the next phase is to find out the amount that can be saved. The uniqueness of this tool is that the drop down menu gives the user an option of selecting the mode of saving utilized by the individual. Inputs such as amount invested along with locking period helps in giving the user an estimated value of their savings upon completion of the stipulated time period. It takes into account inflation thereby ensuring the user that the market dynamics are under consideration.
Inflation Calculator
An important feature which many online tools have forgotten to take into account is the rate of inflation on important events in life. However, it gives its user the facility to calculate the price rise for two important occasions - education and marriage of children. Even without our knowledge, Indians tend to spend lavishly on any occasion related to children. Weddings turn out to be over the top affair with opulent arrangements lasting for days together. In an era where upscale and destination weddings are in vogue, it is important to have a realistic estimate in mind while planning a large scale gathering. This phase could be perfectly described as one where in the spending is sky rocketing while the income is stagnant. By careful planning and investing in right products starting from day one of professional life expenses such as those aforementioned in this paragraph can be met with ease.
Retirement calculator
The last and final step is to arrive at an approximate number required to lead a comfortable life. Even though a professional retire at the age of 59 in India, it is now a common practice to see professionals vacating their post much before the stipulated age. The alternative plans among veteran professionals is to take up a hobby and convert it into another career or to take up short term assignments which offer them good work life balance and the ease to work from home. In other words, the practice is to opt for jobs which offer flexibility.
Depending on the age of retirement, household expenses, inflation etc the tool gives the user a realistic picture of the corpus required to lead a dignified and productive life in the absence of regular income.
Among the various online retirement calculator in India, the most convenient and comprehensive method is adopted by Principal Retirement Advisers.
The Company has broken down the entire procedure in different segments, depending on the expenses incurred at various points of time in life. The simple steps involved in the calculation allow a novice with little or no knowledge in understanding the entire mathematics behind the calculations.
Household Expenses
The first step involved in any kind of financial decision is to calculate the monthly household expenditure. The procedure takes into account money spent depending on the lifestyle adopted by an individual, although they are subjected to change.
Savings Calculator
Upon completion of step 1, the next phase is to find out the amount that can be saved. The uniqueness of this tool is that the drop down menu gives the user an option of selecting the mode of saving utilized by the individual. Inputs such as amount invested along with locking period helps in giving the user an estimated value of their savings upon completion of the stipulated time period. It takes into account inflation thereby ensuring the user that the market dynamics are under consideration.
Inflation Calculator
An important feature which many online tools have forgotten to take into account is the rate of inflation on important events in life. However, it gives its user the facility to calculate the price rise for two important occasions - education and marriage of children. Even without our knowledge, Indians tend to spend lavishly on any occasion related to children. Weddings turn out to be over the top affair with opulent arrangements lasting for days together. In an era where upscale and destination weddings are in vogue, it is important to have a realistic estimate in mind while planning a large scale gathering. This phase could be perfectly described as one where in the spending is sky rocketing while the income is stagnant. By careful planning and investing in right products starting from day one of professional life expenses such as those aforementioned in this paragraph can be met with ease.
Retirement calculator
The last and final step is to arrive at an approximate number required to lead a comfortable life. Even though a professional retire at the age of 59 in India, it is now a common practice to see professionals vacating their post much before the stipulated age. The alternative plans among veteran professionals is to take up a hobby and convert it into another career or to take up short term assignments which offer them good work life balance and the ease to work from home. In other words, the practice is to opt for jobs which offer flexibility.
Depending on the age of retirement, household expenses, inflation etc the tool gives the user a realistic picture of the corpus required to lead a dignified and productive life in the absence of regular income.
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