7 Features to Consider When Using a Retirement Calculator

7 Features to Consider When Using a Retirement Calculator

A retirement calculator is one of the best tools that you can use to plan for your post-working life. With the right kind of calculator, you can plan for your post-retirement life in a much better and a more comprehensive manner. But then, how do you choose the perfect calculator? Are there any retirement calculator features that you would need to take into consideration? This article will answer both of these questions. Continue reading to find out. 

7 things to consider when choosing a retirement calculator 

You can find multiple different retirement calculators online. However, not all of them are designed to give you the experience that you need. Therefore, it is crucial to ensure that the tool that you use has all the retirement calculator features that you need. Usually, an online calculator should take into account a few crucial things. Here’s a quick look at 7 such features. 

1. Whether it takes your personal information into consideration

To be able to determine the amount that you need to save up for your retirement, a calculator should take your personal information into account. The personal information should include your age, your retirement age, details of your income, investment horizon, and your risk tolerance. 

2. Whether it accounts for inflation 

When it comes to savings and investment for your retirement, inflation is a major hurdle. Therefore, a good retirement calculator should always account for inflation. This way, you will be able to save up enough to lead a comfortable retired life without worrying about rising prices and cost of living. 

3. Whether it accounts for your expenses and lifestyle

To produce accurate results, a retirement calculator needs to consider your monthly expenses and your lifestyle. Your monthly income post your retirement should be more than enough to cover all your costs and leave some extra for emergencies. 

4. Whether it supports multiple financial investments 

Not all financial investments provide the same level of return or carry the same risk. A retirement calculator should be able to support multiple financial investments. This way, you get to compare the amount that you’re likely to get from different options and choose the one that offers the best return. 

5. Whether it is capable of finding out just how much monthly income you're likely to get on retirement 

A good retirement calculator should also have the features of a pension calculator. It should be able to give you an accurate estimate of just how much money you’re likely to receive each month after your retirement. Knowing this can help you plan your post-retirement life in a much better manner.

 6. Whether it can determine the amount you need to invest or save 

A retirement calculator shouldn’t just stop with calculating the amount that you’re likely to get from your investments post your retirement. In fact, it should also be able to help you ascertain the amount that you would have to invest or save each month to reach your target financial goal. 

7. Whether it is simple and easy to use 

The user interface of the retirement calculator that you’re planning on using should be simple and easy to understand. Using a complex calculator will only cause more harm than good and can even lead to you inputting the wrong information, which will skew the results. 

Conclusion 

With this, you must now be aware of the various must-have retirement calculator features. If you’re planning for your retirement, what better way to do it than by investing in the stock market? On the other hand, if you’re a moderate risk-taker, you could also consider investing in the debt market. 

That said, whether you’re investing in upcoming IPOs or corporate bonds, having a demat account is a mandatory prerequisite. So, visit Motilal Oswal today to open a demat account in your name within a few minutes and get started with your investment journey. 

 

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