Pension calculator insights: Every working person worries on a daily basis about his retirement income and pension. Retirement is very much a very big thing in the private sector as these employees have no actual pension coming toward them from any source except the payment from their Employees’ Provident Fund (EPF). In case they were smart enough to also invest in bank fixed deposits, Public Provident Fund (PPF) as well as stock markets during their working lives, they may have enough to live on. Here we provide the direction to these employees about what they need to do, to get a minimum amount as pension. In this exercise we take the help of a pension calculator.
Pension calculator: The relevant numbers that will reveal what kind of retirement income a person may need based on his current expenses.
Current age: 30
Current expenses: Rs 40000
When do you want pension to start? 58
There are a few assumptions that we take and these include the age, current salary and likely age of retirement. For instance, if an employee is aged 30, has current expenses of Rs 40000 per month and wants to retire at 58 and we let the pension calculator do the basic number crunching. The pension calculator adds a minimal 2% increase in expenses every year. This is a very low number and people should realise it may balloon considerably and they should try and manage this aspect too as much as possible.
What you will require as expenses at the age of 58 years is a massive Rs 69,641, based on current expenses. The pension calculator also shows you the way forward. What you will have to do is to get that amount after retirement? The employee must act quickly and start investing Rs 3,086 every month. Check the pension calculator figures in image below.
Pension calculator courtesy PolicyBazaar
In effect, due to inflation, ailments, rising responsibilities, as the employee ages, the needs tend to multiply by astonishing amounts. The requirement is to ensure savings in various investment instruments. Even small amounts will provide big amounts of money on retirement. The money saved today, if properly invested, will grow manifold.
Investments can be in Public Provident Fund (PPF), bank fixed deposits, stock markets and more. Do check how much risk each investment vehicle carries.
Disclaimer: The amounts provided here are estimations and the actual amounts will differ and proper evaluation and research must be carried out at the individual level through the aid of professionals and experts.
This pension calculator insight is simply awesome! Your current expenses will determine what you will need on a monthly basis in the future after retirement. For a person with Rs 40000 expenses currently, the requirement will be over Rs 69000. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
