Retirement Planner
Plan your financial freedom. Drag sliders to adjust your current age, retirement goals, monthly expenses, inflation, and expected returns to find your target retirement corpus.
Parameters
Results Summary
This calculator determines the results based on the following standard financial formula for Retirement Corpus & Savings:
Variables Glossary
- Corpus
- Total capital required at retirement to sustain lifetime expense
- Expense_ret
- Monthly expense at retirement (inflated from expense today)
- r_real
- Real rate of return in retirement adjusting for post-ret return and inflation
- Years_in_ret
- Expected years spent in retirement (Life Expectancy - Retirement Age)
Calculates the present value of a growing annuity during retirement, ensuring capital sustains increasing costs due to inflation.
Why should I adjust my retirement goal for inflation?
Inflation reduces your purchasing power over time. A monthly expense of $5,000 today will cost significantly more in 30 years. Failing to account for inflation will result in a retirement corpus that is too small to cover your real costs.
What is the 'Real Rate of Return'?
The real rate of return is the actual return on your investment after subtracting the rate of inflation. For example, if your pension funds yield 8% returns but inflation is 6%, your real purchasing power grows at only ~1.88%.