Annual Withdrawal Rate (p.a.)
--
Retirement Corpus will exhaust at the age of
--
Many of you plan for a comfortable retirement when you are working. If you are a salaried employee, your EPF contributions build up a retirement fund and if you are self-employed you create your own fund. When creating a retirement fund, however, do you measure its sufficiency?
Though many individuals create a retirement corpus, the corpus often falls short in meeting their financial requirements in the golden years. That is why when planning for retirement, you should know exactly how long would your planned corpus last and what you can do to make the corpus last longer. Do you know how to find that?
You can calculate how long your retirement corpus would last by estimating the specific amount of withdrawal done from the fund after you retire. This withdrawal symbolises the money which you would need post retirement to meet your financial requirements. When you factor in the withdrawal rate from your corpus, you can find the time for which your retirement fund would last.
The calculation of the time based usage of your retirement corpus would need you to factor in some important details. You should, first, consider the retirement corpus which you have at your disposal. Thereafter, you would have to figure out the amount of withdrawal, the rate of inflation, the return on your debt and equity investments, life expectancy, any annual income that you receive after retirement and the allocation of equity and debt assets in your financial portfolio. When you factor in these details into your computation, you can find out up to what age would your retirement corpus last at a specified withdrawal amount. The calculated age can also be changed by changing the withdrawal amount or any of the other details which were considered in the calculation.
Calculating the age up to which your retirement corpus lasts gives you an insight as to whether your retirement corpus is sufficient or not. If the corpus gets used up early, you can increase the corpus or reduce the withdrawal amount. This calculation can also be used as a back calculation to calculate the optimal retirement corpus. After you have calculated your retirement fund, you can check its sufficiency by finding out how long the fund would last. Thus, the calculation serves a dual purpose and is a good way of ensuring the sufficiency of retirement planning.
The calculation requires good mathematical formulas to work out the utility of the retirement fund. If you find such formulas difficult or if you are unsure about their usage you don’t have to worry. We at Orowealth offers you a Retirement Withdrawal Calculator which lets you do the calculations at ease. All you need to do is provide the variables into the calculator and the calculator calculates and displays the results instantly. After calculation the calculator shows you the age up to which your retirement funds would last if you withdraw a specified amount every month. It is simple, easy and quick and you also get the assistance of our experienced team for planning for your retirement.
The retirement funds can be invested in a mix of equity and debt mutual funds which would give you good returns. Since the returns on your investments would also affect the life of your retirement fund, you should choose the maximum interest yielding avenues. Mutual funds are one of those avenues which give the best returns both in the equity as well as debt market. You can, therefore, choose mutual fund investments for your retirement.
So, calculate the life of your retirement corpus and double proof the sufficiency of the funds which you are creating for your life after retirement. If the funds do not last long, step up your investments or reshuffle your portfolio but ensure that your retirement fund lasts your lifetime.
Stay informed
Get in touch
Get the apps
Top AMCs
Top Schemes
Calculators
Knowledge Base
The information contained herein is only to enable the Investor (or Lender) to make an informed decision. Any decision taken by the investor on the basis of this information is the sole responsibility of the Investor (Lender) and Orowealth is not liable. Orowealth has partnered with a third party platform regarding investments in various alternative investment opportunities. Orowealth will not be responsible for the full or partial loss of the principal and/or interest of the investor’s investment. Orowealth is only an intermediary introducing these third party services and is not responsible for any agreement you sign with the third party.
Direct mutual funds charge you no hidden commission for managing your money. This is the reason why direct MF schemes have a lower expense ratio. A lower expense ratio of direct plans allows you to generate higher returns as compared to the regular mutual fund plans. In the long run, the direct mutual fund schemes can give you significantly higher returns than the regular ones.
We respect privacy. We would not access or read your email for anything except the transaction statement. Control is in your hands. You can turn this feature off anytime from the settings in your inbox. Fully Secured. Trusted by 2,00,000+ Investors.
For compliance pertaining to mutual funds please write to admin@lpl电竞官方观看正规.com. Please ensure you carefully read the Risk Disclosure Document as prescribed by SEBI. Procedure to file a complaint on SEBI SCORES: Register on the SCORES portal (https://scores.gov.in/scores/Welcome.html). Mandatory details for filing complaints on SCORES: Name, PAN, Address, Mobile Number, E-mail ID. Benefits: Effective Communication, Speedy redressal of the grievances.