Pension Calculator: Retirement Planning Calculator

What is Retirement Planning?

Retirement planning is the process of planning in advance for life after retirement. Planning for retirement involves setting up financial and non-financial goals and making plans to achieve them. Retirement planning helps achieve long term financial goals and generate regular income to be able to manage expenses post retirement. 

Retirement planning is crucial as it helps maintain current lifestyle post retirement. Retirement planning involves long term financial planning as well. It is also important as it determines the sources of income and expenses and establishes a retirement budget based on personal plan.

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SEE ALSO: Best Pension Plans In India

Pension Calculator: Retirement Planning Calculator

Benefits of Retirement Planning:

Retirement planning has several benefits. Planning for the future not only helps remain stress free, but also prepares you for all sorts of emergencies, helping enjoy a peaceful retirement.

• Peace of mind: planning for the future not only reduces stress levels during retirement, but also during the years leading up to it. Lack of planning may bring problems during retirement years, endangering health and mental peace.
• Contextualize pre-retirement decisions: It is important to take time and plan ahead for retirement. You will be able to make better career and finance related decisions.
• Tax benefits: retirement planning has several tax benefits. It helps reduce income tax on investments for retirement like NPS. Invest in financial instruments that have tax exemptions.
• Cost saving: retirement planning is a good way to introspect current expenses and reduce expenditure based on appropriate planning. You can opt for term insurance and health insurance early in life. This helps get coverage for more number of years with a lower premium. If you like to reside in some city or place after retirement, then you can pre plan and buy a property during service years. You can invest in a property and plan accordingly for retirement. You can also rent this property to generate extra income in retirement.
• Viewing financial issues in context: one of the greatest benefits of retirement planning is you can reflect on financial issues and evaluate how these decisions are going to impact your life and the lives of your dependents. You can think of financial decisions as interdependent and not mere decisions. Decisions like how the insurance policy is going to help the dependents in your family, tax exemptions from saving instruments that may benefit you post retirement, how a health insurance may help your family in an emergency and so on.

SEE ALSO: Types of Retirement Plans

Pension Calculator for Retirement:

People often worry about retirement. Today, you do not need to worry too much on retirement, if you plan your way to a secure retirement. A retirement calculator helps calculate how much money you will need to grow your wealth to ensure a smooth and peaceful retirement. Now, you can easily plan your retirement with the online retirement calculator. The online retirement calculator helps practically plan finances, post retirement. You will be able to get a clear perspective on how much you need to save to maintain your lifestyle without compromises. The services are free of cost and the calculation can be done in minutes.

How pension plan calculator works?

Pension Calculator helps calculate your income requirements post retirement on the basis of age, annual income, savings, nature of accommodation, and the expected growth rate. Pension Calculator basically helps determine the monthly amount you must invest towards a retirement plan, in order to meet your financial needs during golden years. The pension calculator has the following fields, where you need to provide the required input to get the desired outcome:

• Date of birth
• Retirement age
• Annual income
• Savings
• Post retirement accommodation
• growth

SEE ALSO:Retirement Planning For A Secure Retirement

Read IndianMoney Reviews before purchasing the retirement Plan

Each family has different expenses and financial requirements. Therefore, before finalizing any pension plan, keep in mind the requirements of your family. Different pension plans in India have their own set of benefits and limitations.

It is always advisable to do thorough research on these policies and compare the different pension plans offered by different insurers and Companies. IndianMoney.com advises and guides you in availing the best policy that meets financial goals and life situations. The services are completely free of cost.

Conclusion

FAQs

Q: What happens to my pension plan if I leave my job?

You will be given all the contributions that you made to the pension account. You will get contribution made by employer after five years.

Q: How much of my pension is my spouse entitled to?

A spouse is entitled to 50% of the amount of the pension that was earned while you were married.

Q: Is a Retirement Pension Plan taxable?

The contributions that are made to a pension plan under Section 80CCC, are exempt from taxes up to a maximum ceiling of Rs 1.5 Lakhs. The withdrawals however are not tax free. Only one third of the corpus that is distributed to the retiree by the pension plan is tax free. 

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