Retirement Planning Calculator
Consider those monthly expenses that you will need even during retirement. As an example, exclude EMI as the loan is likely to be paid off before retirement but then add additional budget for heath care as post retirement, this will go up. Take the total figure at the current value.
Objective here is to establish the future value of your current & future retirement savings on your retirement date.
Total up all your retirement savings as on today including PF, VPF, NPS & PPF etc. Mention present monthly PF savings, separately for your and your employer's share, respectively.
Identify the target return on both the retirement savings before you retire and after you retire. You can also have a different target rate for the incremental savings to be done for the corpus gap, between now and till your retirement.
Your expected salary hike is needed only to factor your PF savings growth.
STEP 3 & 4
(A) Retirement Corpus needed is present value of the corpus you need on the retirement date. This is keeping in mind the inflation adjusted expenses for the given life expectancy and a target rate of return on the post retirement portfolio.
(B) This is total of all your present and future retirement savings, adjusted for salary hike, given a target rate of return.
(C) Is the likely gap in the retirement corpus, based on the given inputs and above assumptions.
Savings needed per month will help to bridge the likely retirement corpus gap.