How To Do Retirement Planning (Part 2)

"Retirement, a time to enjoy all the things you never had time to do when you worked."

Catherine Pulsifer

Now that you have a target of retirement corpus you need to save, half the battle is won. What is left, is for you to decide how much to save per month in order to reach that freedom figure!

Step 2: How much to save per month

If you go with option II (Which, obviously, is the better option in our opinion), a worksheet with a calculator has been provided for download here in order to save you from the hard work :

You need to enter the following to get how much you need to save by the time you retire: Your present age Your estimated post-retirement expenses (which we calculated in Step 1) Rate of interest on your savings investment

DOWNLOAD SAMPLE WORKSHEET

Now continuing with our assumption that your age is 30 Yrs and your expected monthly expenses post-retirement are Rs. 40,000 per month, return on investment assumed to be 10%(this can be modified at readers' discretion according to their risk appetite), present savings to be Rs. 0 ( Again, this can be modified as per current savings held for retirement), the monthly amount that one needs to save is Rs. 39,255.

A sample table showing retirement expenses calculation:

The fields given in the savings calculator can be modified by the readers according to their risk profile, how much savings they are having, how much their intended retirement corpus is, etc., and decide upon a monthly savings target.

With savings target now in front of you, you can easily plan for it. With numbers in your hands, it becomes so much easier to plan, invest and budget for your future!