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Before Retiring Identify Your Retirement Needs Using The Retirement Calculator
24 Jul 2023

There are plenty of different online calculators designed to help manage your finances in a much better manner. One of them is the retirement calculator. It is a nifty little tool that can help you understand just how much you would have to save up for your retirement and how much you would get from your investment when you finally retire. 

That’s not all. If you’re unsure of what your retirement needs are likely to be, such calculators can help you identify them as well. Here’s how they can help you understand your requirements. 

How can retirement calculators help you identify your retirement needs? 

To help you determine your post-retirement needs, a good retirement calculator comprehensively takes into account several different factors. Here’s an overview of the various factors and how a calculator uses them to identify your needs.

1. Personal and income information   

Firstly, when you use an online calculator for determining your retirement needs, you would be asked to enter a few personal details such as your current age and the age at which you plan to retire. This will help the calculator determine the number of working years left. 

Then, you will also be asked to specify income information such as your current annual income and the rate at which your income is likely to grow year over year till you achieve retirement. This data will help the calculator ascertain your total income generation capacity till you hit your retirement. 

2. Savings, investments, and expenses 

Along with your income details, a retirement and pension calculator will also require you to enter details about the current savings and investments that you have. In addition to this, your monthly expenses are also taken into consideration.  Also, explore some insights about emi calculator.

All of this information helps the calculator get a baseline idea of what your lifestyle is like. With the data on your current lifestyle, the tool can accurately predict just how much more you would need to save up till the time of your retirement to live a comfortable post-retirement life. 

3. Inflation rate 

For your finances to be strong enough to ensure a comfortable post-retirement life, you must stay ahead of inflation. That’s why most retirement and pension calculators take the inflation rate into account when determining your retirement needs. 

The inflation rate in the economy is used along with the other factors listed above to determine the total retirement corpus that you would have to possess to maintain your current lifestyle even after you’re done with your working years. 


The retirement calculator, after accounting for the above factors, should give you an idea of how much more you would need to save up by the time you hit your retirement age. Once you’re aware of this, you can then proceed to structure your investments in a way that enables you to get this amount. When choosing the kind of investments, always consider your risk profile.

For instance, if you’re a conservative investor, consider investing in Public Provident Fund (PPF), National Savings Certificate (NSC), National Pension System (NPS), and Fixed Deposits (FDs). On the other hand, if you’re a risk aggressive investor, you can consider investing in equity mutual funds or upcoming IPOs. And finally, if you’re a moderately risk taking individual, you could consider investing in a mix of equity and debt instruments such as bonds and debentures. 

Now, if you’re planning on investing in the equity market or the debt market, you should know that holding a demat account is a mandatory prerequisite that you would need to satisfy. Head on over to Motilal Oswal today to open a demat account and a trading account online within minutes and kick start your retirement planning. 


Related Articles: How to Open a Demat Account Without a Broker | Factors to Keep in Mind While Opening a Demat account | Factors to Consider When Opening a Demat Account | 10 Points to Remember When Operating your Demat Account | Types Of Demat Account & Trading Account

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