What do you actually think when you hear the term ‘Retirement?’ It is truly a termination to one chapter of life and a new beginning to the next chapter. Some people consider retirement as the best part of one’s life. For most people, retirement is the perfect phase to stay leisurely in life. At the same time, it is truly disappointing for those who don’t have precise retirement planning. Retirement is the phase wherein you don’t have many chores to do at your home. Whenever the retirement stage comes, it brings poverty, loneliness, and illness for some people.
Despite being a successful person, you must and should make some planning before retirement. It is considered as a crossroad that we come across in our life at some or other point in time. It brings some vital changes in our lifestyle and our hobbies too. Some people call it a completely new attitude on how we come across each day. After retiring from your current profession, you will receive some retirement amount in terms of money. Besides this, the Government employees will receive a monthly pension based on their designation. Some people prefer retiring when they are eligible for the public as well as private pension benefits.
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It is truly necessary for every individual to plan their retirement and calculate their benefits. You need to have a clear picture of how much you actually require to enhance your wealth and lead and smooth and hassle-free life after retirement. For that, you can make use of the retirement calculator and analyze the amount that you could save for your retirement. Here is everything you need to know about retirement calculator, its benefits, the procedure to use a retirement calculator online and more. Have a look!
About Retirement Calculator?
Are you aware of the retirement calculator? Then, we are here to help you folks through this detailed guide. If you don’t know what it requires to work in order to secure your retirement, just check out this simple tutorial. By making use of the best retirement calculator, you can generate a detailed retirement plan. You can check out the retirement savings balance and make a calculation regarding your withdrawals every year. On a sliding scale depending on your income either monthly or annually, the social security can be calculated. It includes the non-working spouse in your retirement plan and it will enhance the social security benefits.
By making use of the best retirement calculator, it reflects your contemporary retirement planning. In this way, people can plan their additional savings, part-time income, actual income, and other income resources. One can enhance their retirement savings for about 3 extra income resources that include selling a home. After working hard for about several years, you will definitely plan to relax at one point in time. But, it is truly stressful for individuals to relax post-retirement. You might come across some financial issues after your retirement if you don’t have correct planning.
Make sure that your savings to fulfill your housing, food, travel and medical expenses are sufficient. Do you actually know how much you need to save till you reach the retirement age? If not, check out the best retirement calculator that helps you calculate the amount that you need to save by your retirement age. A Retirement Calculator is a beneficial tool that helps people to calculate the amount that you need to save in order to enjoy your further days in your life. If you have planned your retirement in a precise manner then, you can enjoy your golden years even after your retirement.
What are the Best Retirement Plans?
One will definitely wish to have a relaxed and stress-free time in your life post-retirement. You need to spend your valuable time with your son, daughter, and grandchildren. You can easily fulfill those things that you haven’t achieved in your busy life. The one thing that you might worry about is your financial worries. If you have a proper retirement planning then, you don’t need to worry about it anymore. Using a retirement calculator, you can easily understand the savings you need to save prior to the retirement. Here are some of the best retirement plans for enjoying a golden time in your life:
1. LIC Jeevan Akshay VI Plan:
It is the best pension plan that offers a total of 6 annuity options. One can select any one based on their requirement. The policyholder must pay the premium amount in a huge amount. If the purchase price of the plan is more than Rs. 2.50 lakh then, they can get a rebate on the selected pension plan. The eligibility for this retirement age ranges between 30 years and 85 years.
2. HDFC Life Click 2 Retire Plan:
It is another best retirement plan that provides a return to the individual based on market performance. One can settle the premium amount in a single payment or in terms of 8, 10 or 15 years. The eligible age for choosing this plan is from 18 years to 65 years.
3. Reliance on Smart Pension Plan:
It is a non-participating unit linked retirement plan. Using this, one can save their retirement amount in a well-structured manner so as to preserve a lumpsum amount through their regular income. For investing in this plan, the eligible age is 18 years to 70 years. This plan offers tax exemption benefit for the individuals.
4. Max Life Guaranteed Lifetime Income Plan:
It is a non-linked additional traditional retirement plan that provides a sequence of income after the individual’s retirement. The eligibility of age to use this plan is 50 years while the maximum age is 80 years. One can either select annual, semi-annual, quarterly or monthly modes.
How to Use Retirement Calculator Online?
One can use the best online retirement calculator in order to calculate the monthly income that you can save for your retirement life. Using the retirement calculator, you can determine the precise amount you need to save for your post-retirement life. Besides this, it helps you understand how much you need to save on a frequent basis in order to attain your retirement goal. Before accessing the retirement calculator, you need to enter your current age, current monthly expenses, estimated retirement age, average inflation rate till retirement, bank interest rate and growth of investment details in the given fields. It then displays the total amount that you need to save until your retirement for a happy post-retirement life.
How much Income to Save for Retirement?
For those who are confused about the amount they must save for the best retirement life, we suggest them ‘as much as they can’. Most of the financial planner suggests the people save at least 10 to 15 percent of their income for retirement right from the age of 20 years. Before coming to a conclusion, you must think about it in a deep manner. It is a great idea to set a savings target. In order to fulfill your retirement goals, you need to set something aside as time goes on. One of the perfect ways to find your savings target is to utilize the best online calculator available online.
It helps the users to check out how much they need to save and how much they need to set aside to reach the target amount. Ensure that you update the calculation of your retirement amount each year. This way, you can keep yourself in the right track. It is generally said that you require at least Rs. 1500 to Rs. 2000 in your savings to cover each and every rupee in the shortfall of your annual income between the income and your expenses. For instance, if your extended retirement expenses increase social security and pensions through some amount a year, you require more amount to save.
Why should you Plan for Your Retirement?
There are numerous reasons behind planning for your retirement. Some of the reasons have been mentioned below:
- The average life expectancy endures rising. We may not know when we leave our precious life from this world. Hence, it is necessary to make the best retirement planning.
- None of the individuals can work in their whole life. At some or other point in time, they require some relaxation and permanent break from their work.
- Compared to the financial obstacles that you have faced in your life before retirement could be more than your future obstacles.
What should be the Ideal Retirement Age?
The retirement age is solely based on your interest. In the year when you retire, you don’t require making any kind of contributions to your retirement savings. If you retire at the age of 65, you need to complete your contribution to your retirement savings until 64 years. With the help of the best retirement calculator, you can make your complete contribution at the end of every year.
That’s all! One must choose a perfect retirement plan for securing their post-retirement life and fulfill their dreams. This is everything you need to know about the retirement calculator. Hope this guide has given adequate information about the ideal retirement age, benefits of a retirement calculator and retirement planning details. We have even included the best retirement plans or pension plans available in the current market. If you still have any doubts, don’t hesitate to ask us through the comments section below.