Life moves so fast. Today, you’re working and taking care of your family to meet the monthly expenses. But have you ever taken a moment to spare and thought about what will happen to your family after you attain the age of 60? The retirement age! At this point, most people wish to spend time with their children and grandchildren, enjoying the fruits of their hard work. However, to enjoy those formative moments of your life, you need money and plenty of it. Because, at this point, you will only have your pension plan to take care of your day-to-day needs.
That’s where our pension calculator comes into play!
The pension calculator is a free digital tool. Using it is as simple as a child’s game. It only takes a couple of minutes of your time to calculate your future needs. All you have to do is enter a few details about your current age, your savings, and your monthly expenses. And just within seconds, the tool will do all the hard work for you!
It will show you the total amount of money that you will save by the time you retire, And the amount of money that you will receive every month as your pension plan income.
Reason to Estimate Your Retirement Income
While at work, you receive money in your bank account every month, but once you retire, the income stops. However, the expenses do not. In fact, they only shoot up as you grow old. The amount paid towards medicines, for instance, keeps growing with age
The day-to-day needs such as milk, veggies, fuel, and medicines also tend to rise every year. This rise in prices is commonly known as inflation. So much so, that a budget that is well-suited for today may not suffice even a decade from now
By using a pension calculator, you will be able to stay one step ahead of inflation.
How Does a Pension Calculator Work?
The online pension calculator is super simple to operate. It takes less than two minutes for you to get an accurate reading. Here’s what you have to do:
- Input your current age,
- input your retirement age, let’s say, 60,
- input your monthly expenses,
and the amount that you save every month.
That’s all! The pension calculator will display your future financial needs right on your screen. It almost acts like a complete financial overview of your future, which in turn empowers you to make informed decisions
Key Benefits of Using a Pension Calculator
1. No More Guesswork
It is always next to impossible to guess how much you might need during your retirement period. Some people think it’s enough to save up 50 lakh rupees, while others believe that 1 crore will suffice. But how accurate can these estimations be? Well, by using our pension calculator you can put an end to all this guesswork and make calculations backed by solid numbers.
2. It Helps You Select the Pension Plan
After determining the amount that you will require when you retire, it becomes easy to choose the best monthly pension plan. In fact, in India, there are a number of pension plans such as NPS, PPF, or the guaranteed annuity plan from various insurance companies.
3. Helps You Stay on Course to Meet Your Financial Goals
When you use a pension calculator while you’re still young, say in your late 20s or early 30s, you realize that the amount that you thought was enough isn’t. So you have to start saving a bit more. But, since you’re still young, you can also raise your monthly savings by a few thousand rupees so that you can meet your goals.
4. Ensures Financial Independence
No parent wishes to become a financial liability to their children. That’s why it’s important to determine your monthly expenses so that you can invest in a pension plan that will keep you financially independent for the rest of your life.
A Simple Illustration
Let’s suppose that Ramesh is currently 30 years old and he wishes to retire at 60. His family’s monthly expenses currently amount to Rs 30,000. He believes that he will need the same amount to support his family after he retires
But, when he uses the pension calculator, the tool factors in a 6% annual hike in prices and determines that he will need around 1.7 lakhs per month to support himself when he turns 60. By determining his future financial needs at a young age, Ramesh has the opportunity to invest a certain amount every month towards a pension plan that will enable him to meet his needs with ease when he retires.
How to Start Preparing for Retirement Today!
Determine your financial needs:
- Using the free online pension calculator.
- Define a target and choose the best monthly pension plan to keep you financially independent.
- Save a fixed amount every month.
- Review your pension plan every year and adjust your savings if your income increases.
Conclusion
Retirement is supposed to be the most enjoyable time of your life, for you are free from the shackles of daily work and can spend more time with your near and dear ones. Your pension plan is what decides how financially sound you will be at that point in time. So start preparing today itself. Instead of waiting till you are 50, take a moment now and spare two minutes to use the free pension calculator. Determine your future financial needs and invest in a pension plan that will keep you financially independent and stable for the rest of your life!
