Pension Calculator - Online Advisor

How much monthly pension do you want after retirement? How much do you need to save monthly from today to get your desired monthly pension? Check now with our online pension calculator. Right advise online in less than 2 minutes.

Start Pension Advisor
Your Age*
Currently living in*

By proceeding & using this tool, I accept the "Privacy Policy", Terms & Disclaimers of the website & I agree to the same.

About Pension Calculator

Why Retirement Planning?

This is a simple pension calculator, which tells you how much you pension fund you would require at retirement and how much monthly investment you need to make from today, based on your desired monthly pension after retirement. The Pension calculator will ask you a few quick question and your report will be generated in less than 2 minutes online. This pension calculator is a free financial tool and does not require or asks for any contact information i.e email or mobile.

Planning for retirement using a retirement planning tool or retirement planning calculator is the ideal solution. Why? It is because the retirement planning calculator helps in determining the amount of savings required to build up a retirement corpus. However, before we move on to discuss the importance of a retirement planning tool; let us understand why retirement planning is required:

• Inflation – considering the rising expenses, inflation is a factor, which is very important to be added to our retirement planning calculations. After our retirement, we would be requiring a corpus, which is inflation adjusted and hence planning for building such a corpus is important.

• Medical expenses – in the older ages, medical expenses also rise and as have to be included when creating a corpus. Creation of a corpus is not possible without a proper retirement plan in place.

How to calculate the optimal pension amount using the pension plan calculator?

Most of us feel clueless on how to start our retirement planning procedure. Though most of us understand the importance of retirement planning, we tend to get confused in the ‘how’ of such a planning process. To solve this common dilemma, we have developed a retirement planning too, whichis called the Pension Planning Calculator. Calculating the required pension amount for you has been greatly simplified by this retirement calculator. This pension planning calculator requires some basic details mostly in terms of your financial information. These details are then analyzed by the retirement tool to arrive at numeric solutions. The solution generated by the pension plan calculator gives an insight into the amount, whichis needed when you retire and the corresponding monthly savings required for building such a corpus.

Why retirement planning should be started at the earliest?

They say,’ the early bird catches the worm.’ The importance of investing early, too, has its multiple benefits. Some of these benefits are listed below:

• The compounding factor – compounding, in simple terms, means earning interest on the previous earnings. Almost all investment instruments provide annual returns which when reinvested earn future interests due to compounding. This compounding factor promises the potential of multiplying the investments manifold but only if such investments are held for a longer time. A fund invested for a long tenure can generate the returns required for building a retirement corpus. Thus, only if the retirement planning is started at the earliest, compounding would work and yield a proper corpus.
This feature can be established by a simple illustration. Say, we invest Rs.5000 every month in the same investment instrument, which yields a return of 12% per annum. Both the investments obey the compound interest principle. While the first investment is done for a period of 30 years, the second is done for a term of 25 years. Given the investments, the rate of return and the period, the first investment done for 30 years would yield a corpus of Rs.1.75 crores approximately while the second investment done for 25 years would yield a corpus of Rs.94 lakhs approximately. A whopping difference of Rs.61 lakhs and that too for a mere time difference of 5 years! Unbelievable, isn’t it?

• Affordable savings – starting early also helps you to save affordable amounts periodically. When you start investing from an early age, you can make small and affordable contributions every month which would later result in a decent corpus. If you start late, to build the same decent corpus, a higher monthly savings would be required. Such a higher amount might not be affordable and you might end up accumulating an insufficient corpus. Thus, small savings, saved over a longer period would help build up your retirement fund easily and that too, without pinching your pockets.

Why should you use this pension planning calculator?

Estimating the required amount of corpus after retirement and the required monthly contributions is a mathematical calculation whichincludes various variables into its equation. For you, as a layman, such complex calculations would become ambiguous and confusing. This pension calculator provides an easy and fast way out where you can ascertain the figures easily. Additional reasons for using the retirement calculator include:

• A realistic time perspective – the pension plan calculator uses your current age to determine the number of years remaining to your retirement. Based on your age and the time window, the retirement calculator chalks up a realistic investment figure.
This feature can be established by a simple illustration. Say, we invest Rs.5000 every month in the same investment instrument, which yields a return of 12% per annum. Both the investments obey the compound interest principle. While the first investment is done for a period of 30 years, the second is done for a term of 25 years. Given the investments, the rate of return and the period, the first investment done for 30 years would yield a corpus of Rs.1.75 crores approximately while the second investment done for 25 years would yield a corpus of Rs.94 lakhs approximately. A whopping difference of Rs.61 lakhs and that too for a mere time difference of 5 years! Unbelievable, isn’t it?

• Calculations based on your actual requirements – this retirement calculator uses your actual financial requirements which calculating the required savings. Three variables are taken into consideration in this calculation which include:
a) Your expected pension – this amount denotes the monthly pension which you would require after retirement. In letting you make the choice, our pension planning calculator ensures that your pension requirement would depend on your lifestyle expenses which you see fit.
b) Your current income - this is a very important variable in the pension calculation. Your income level is required to estimate the affordability of the savings required for retirement planning.
c) Your return expectations – every individual has a different risk appetite. While some are comfortable with aggressive risks and high returns, others are more conservative in taking risks and are happy with moderate returns. Thus, based on your return expectations, your risk appetite can be determined. This risk appetite would help in analyzing the investment instruments meant for you and the contribution required which when invested as per your risk profile would yield the desired corpus.

Based on these figures, the retirement corpus and the required monthly investments are generated and you get a realistic figure.

• Detailed analysis – our calculator not only estimates the required savings, it also provides a detailed analysis about your retirement planning tool. Analysis about the following are generated by the pension calculator:
a) Risk and return – this shows that the calculation is made using your expected return and the consequent risk profile.
b) Proportion of contribution – this figure helps you in understanding how much of your monthly income are you allocating towards your retirement planning investment.
c) Investment options – the best part about our calculator is informing you about the available investment instruments, which can be selected, based on your risk and return profile. Thus, if you are financially unaware, this information would come in handy in selecting your investment medium.
d) Early retirement option – another variable taken into consideration is the change in the period of investments. The analysis helps you ascertain that in case you retire early, how much an increase in the savings is required to accumulate the same corpus..

This analysis helps you in getting a quick view of your investment planning.

• Insights – the pension calculator, besides computing figures, also provides useful insights about your investment style, an ideal pension fund and also helps you in viewing the available plans of investments and their comparable quotes. You can easily compare the quotes of all the available plans as per your saving requirement, see their relative features, benefits,advantages, etc. and then make a choice on the most suitable plan. Thus, the pension calculator starts from ascertaining your retirement planning requirement, provides a solution, gives insights and suggestions and also helps you in fulfilling your retirement planning process through online quotes and purchases.

With so many benefits and additional features, do you still feel hesitant in using the retirement planning calculator?.

How to make the most of the pension planning calculator to my advantage?

Our pension calculator is a very comprehensive computing tool designed to solve all your queries related to investments towards your retirement planning. There are some basic guidelines using which you can make the most out of this pension plan calculator. Such guidelines are described below:

• Provide correct information – the primary information required in the retirement planning calculator is your age and the city of residence. Both these facts are relevant to the computing process. While your age determines the remaining active years of employment and the investment tenure, your city of residence determines your lifestyle expenses, which dictate the pension requirement after retirement. So, provide the correct information for a fair and correct computation.

• Don’t shy away from mentioning the financial details – the next page asks your expected pension, monthly income and expected returns. These are the most important aspects for generating a true investment figure and hence should be provided correctly.

• Pay heed to the insights and analysis – just knowing the required savings is not enough. You should also start making such investments. If required, the retirement calculator also provides you the opportunity to start an investment online through the portal after comparing the available choices.

Therefore, the pension calculator is an all-inclusive tool for knowing and implementing your retirement planning process.

Pension Calculator : This is a simple pension calculator, which tells you how much you pension fund you would require at retirement and how much monthly investment you need to make from today, based on your desired monthly pension after retirement. The Pension calculator will ask you a few quick question and your report will be generated in less than 2 minutes online. This pension calculator is a free financial tool and does not require or asks for any contact information i.e email or mobile.

Why should you use this pension calculator?

Financial security in retirement years doesn’t just happen on its own. It takes proper planning, commitment, discipline and, yes,a lot of money.
Some facts about Pension Planning in India

Fewer than one third of Indians have calculated how much they need to save for retirement.
The average Indian spends roughly 20 years in retirement life.

Saving regular money for retirement life is a habit we can all live with. Remember…Saving Matters! So, go ahead calculate your pension amount.

1. Start saving/investing from today, keep saving/investing , and stick to your goals.

If you are already saving for retirement, keep saving! We all know that saving is a difficult habit cultivate but a rewarding habit for sure. If you have still not started saving, it's time to get started. Start small based on your financial situation and try to increase the amount you save each month if possible. It’s quite simple, the early you start saving or investing towards your retirement goals, the more time your money has to grow. Make saving a habit for your retirement years on a priority. Make a plan, stick to the plan, and review you goals every 3 years. Remember, it's never too early or too late to start saving for your pension life.

2. Calculate your pension needs before you start.

Post-Retirement life is expensive. Experts believe that you will need at least 60-70 percent of your pre-retirement income to maintain the same standard of living when you stop earning. The key to a secure retirement life is to calculate your post retirement expenses and plan in advance the income you would require post-retirement. Talk to a retirement advisor or qualified investment planner and plan your retirement life. Take charge of your post-retirement financials.

3. Contribute towards PF/ PPF/ National Pension Scheme or any other Pension Plans

If your employer offers a retirement savings plan, sign up and contribute all you can. You can also contribute individually into Public Provident Fund (PPF). This will lower your taxes. Over a period of time, compound interest and tax deferrals will make a huge difference in the funds you will accumulate in the long run. You have other options such as the National Pension Scheme (NPS) or you can buy any of the Pension/ Retirement plans offered by Life insurance companies. Find out about the best pension plan for yourself & compare the features and specially the expenses & charges towards managing your pension fund.

4. Stick to basic investment principles and keep it simple

How & in which financial instruments you save is as important as how much you save for your pension life. Inflation and the investments type you choose play an important roles in how much you'll have saved for your retirement fund. Check how your pension plan is invested and in which instruments i.e Equity, Debt, Bonds etc. Learn about your plan's investment options and ask questions if you have doubts. Better option is to put your investments in different types of investments or fund options. By diversifying this way, you are more likely to reduce risk and improve return. The investment mix may change over time and will depend on a number of factors such as fund goals, your age, financial circumstances and how much you will be investing regularly. Keep your investing simple and avoid risky financial instruments and do not invest in funds you do not understand completely.

5. Don't ever think of withdrawing your retirement savings

If you withdraw your retirement savings, you may lose principal and interest and you may also loose tax benefits and/or may have to pay some withdrawal penalties if applicable. If you change jobs, leave your savings invested PF or continue with the same PF with the new employer. For any reasons you are not able to continue to save towards your pension plan talk to your fund management company for a possible solution.

Yes or No

With this health advisor tool you can get answers in Yes & No, in less than 2 minutes.

India's First

Unique & Sophisticated algorithm designed inhouse to give the right advise.

2 Minutes

Get the right answers & details reports are generated in less than 2 minutes.

32,000

More than 32,000 customers have liked this tool.

Connect with us on Social Media

Connect with us on popular social media websites & get latest Updates on News & Offers