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Overview of Retirement Calculator Retirement is that phase of life when you stop working and may not have a regular source of income. However, your expenses do not end, and you need a retirement corpus to help you fund them. This is where a retirement calculator comes in handy. A retirement calculator is a simple online tool which aids you in calculating your retirement corpus that can be accumulated through regular savings from your annual income. It considers several factors such as your age, income, desired retirement age, investments, savings amount and expenses to calculate your retirement corpus. The calculator then provides projections to help you understand your expenses after retirement and how much you should save to manage such expenses.

How does a retirement calculator help you plan your retirement? A retirement calculator acts as an effective tool for retirement planning by providing foresight and clarity to one’s financial goals and needs. It helps you to anticipate the funds you will require after retirement, considering your current expenses. Here are some ways in which a retirement calculator can help in planning your retirement

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Financial assessment

The calculator assesses your monthly income, years to retirement, average lifespan, expected inflation and expected returns from investments. Based on these factors, it generates the retirement corpus that you would need. This gives you an idea of the savings you need to create for a financially comfortable life.

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Factoring inflation

Inflation is a major factor when calculating the retirement corpus. Over the years, it increases the average monthly expenses, and your retirement fund should factor in the inflated expenses to be optimal. The calculator factors in inflation in the calculation of the corpus giving you a more realistic figure.

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Financial planning

The calculator not only helps you find the suitable retirement corpus; it also helps you plan for it. With the Bajaj Allianz Life Retirement Planning calculator, you can choose suitable retirement-oriented life insurance plans and start building your retirement fund.

How does a Retirement Planning Calculator work? Here’s how the retirement planning calculator offered by Bajaj Allianz Life works –

First, you have to provide your average monthly expense. This includes your basic household expenses, utility bills, lifestyle expenses, etc.

Next, provide the number of years for which you plan on working. This depends on your current age and retirement age. For instance, if you are 30 and you plan to work till 65, the number of years till retirement will be 35 years.

You also need to mention for how many years you plan your retirement corpus to last. In other words, after retirement, how long do you want your corpus to pay for your lifestyle expenses?

Enter the expected inflation rate, which you can get based on the past inflationary trends.

Also, provide the expected annual return on your savings

Based on these inputs, the retirement planning calculator will find the average retirement corpus that you would need post-retirement.

Steps for Retirement Planning Once you find out the retirement corpus needed, you can start planning for it. To do so, here are some steps that can help –

  • Assess your disposable income Before you start saving up for retirement, you need to assess how much savings you have at your disposal. To do this, you have to find out your disposable income, i.e., total income minus total expenses.
    This income can be allocated to investments for different financial goals.
  • Start investing for retirement The next step is investing. If your retirement is far off, you can start by saving a small amount of your disposable income towards it while a major chunk is invested towards short-term and other prior goals. On the other hand, if you will be retiring in the next few years or within the next 5-10 years, retirement planning will become important.
    Assess your financial goals and check how much savings you can put aside for retirement.
  • Choose suitable plans Once you have allocated a portion of your disposable income for retirement, the next step is to invest it in suitable avenues. When it comes to retirement planning, life insurance pension plans can be a good choice. You can choose deferred annuity plans and build up a retirement corpus. You can also choose ULIPs for market-linked returns and a good retirement corpus.
    Other investment plans you can consider include mutual funds, shares, National Pension System (NPS), fixed deposits, etc.
  • Regular review Retirement planning is not a one-off activity. After you start investing towards your retirement fund, you need to review it regularly to ensure that your retirement plan is on track. The review usually involves two steps. Firstly, you check whether the expected retirement corpus is still relevant. Increased inflation, increased post-retirement goals or higher expenses might require enhancing the retirement corpus. In such a case, you also need to increase your investments.
    Secondly, check how your investments are doing. If your investments are not delivering the expected returns, you can manage or change them to enhance their return potential. For instance, say you have invested in a pension ULIP, and the selected fund is not performing well. In this case, you can switch to a better-performing fund for better market linked returns.

Reasons for having a retirement plan Some reasons why a retirement plan is needed are as follows –

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Comfortable retirement

With a retirement plan in place, you can create a retirement corpus for your golden years. When you have a corpus, you can be financially independent and lead a comfortable life without needing financial assistance from anyone.

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Regular income

Retirement plans offer guaranteed* regular payments in your golden years. This pension becomes a source of regular income which can replace the income that you have lost after leaving your employment or business. Furthermore, the income can help you meet your financial goals after retirement like taking a vacation, buying a retirement home, etc.

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Estate planning

If you want to leave behind a financial corpus for your loved ones, a retirement plan can help with that too. With the commutation benefit available, you can commute a part of your corpus in cash and plan a legacy with it. Moreover, if you choose the annuity option which returns the purchase price on demise, your loved ones will get a lump sum financial benefit after you pass away.

Top 3 Benefits of using a retirement calculator The retirement calculator is a user-friendly financial tool that can be used by individuals to estimate their retirement corpus. It factors in inflation the future value of investments and considers various expenses to project the future financial requirements of an individual.

Using an online retirement calculator offers the following benefits

  • Tailored retirement goalsDifferent individuals have diverse retirement aspirations and goals. Some individuals plan their dream home after retirement and others want to explore the world. Each goal requires funds. A retirement calculator provides an estimate of the amount required to attain these post-retirement objectives.
  • Better Financial clarityA retirement calculator factors in variables such as investment duration, expenses, and inflation to provide an estimate of the retirement fund. This clarity provides a clearer image of the necessary investment and understanding of the financial steps to be adopted to create the calculated corpus.
  • ConvenienceManual calculation of a post-retirement corpus involves complex computations, considering investment returns and inflation rates, which can be lengthy and tedious. Using a retirement calculator simplifies the entire process significantly, making it efficient, convenient, and accessible for investors.

How to invest for early retirement? When it comes to retirement, investing early is the key to building a good corpus. This is because of the following reasons –


  1. Step 1: Compounding can deliver exponential returns when you give your investment time. The longer the tenure, the higher the corpus you accumulate, so start early.
  2. Step 2: With a long-term investment horizon, you can save in small amounts and still build up a good corpus, thanks to the power of compounding.
  3. Step 3: When you start early, you might have a higher risk-bearing appetite. You can invest in equity funds of ULIPs and get good returns, associated with risk, on the premium you invest.

So, early investment has many benefits. To start investing early, here are some tips that can help –

  • Start saving a part of your income right after you get a job and start earning.
  • Invest in a disciplined manner and avoid withdrawals or the temptation to use the retirement corpus for any other financial goal.
  • Choose a suitable investment avenue to build your retirement corpus.

How much to save for retirement? How much savings do you need to do today to create the desired retirement corpus?

The amount of savings depends on a lot of factors. Some of them include the following –


  • Disposable incomeThe first thing determining how much you can save for retirement is your disposable income, i.e., income left after meeting your expenses. This income can be allocated to investments and determines your saving capacity. If your disposable income is high, you can save more, but if it is limited, your savings might also be limited.
  • Investment tenure The next factor is the investment tenure. If you start saving early, you have a long-term investment horizon. This allows you to save in small amounts and still build up a good retirement corpus with the power of compounding. However, if your investment tenure is limited, you need to save more to create the desired corpus.

    For instance, say you start investing at 30 years of age and plan to retire at 65. You have 35 years of investment tenure. If you want to create a corpus of ₹2 crores at an assumed interest rate of 12% p.a., you can save ₹3250 per month and build up a corpus of ₹2.09 crores. On the other hand, if you start investing at 40 years of age, your investment tenure reduces to 25 years. In this case, you will have to save ₹11,000 per month to create a corpus of ₹2.06 crores. [Future Value= (Rate=12% p.a., i.e. 12%/12, total number of payment period=35 years *12 months, i.e. 420, each payment=3250, Present Value=0) to get Rs. 2.09 crores.

    For the second calculation, Future Value = (Rate=12% p.a. , i.e. 12%/12, total number of payment period=25 years *12 months, i.e. 300, each payment= 11000, Present Value=0) to get Rs 2.06 crores]
  • Other financial goalsYour other goals also affect your retirement savings. You try to save for those goals, too, which reduces your disposable income and your ability to save for retirement.
    For instance, if you have a monthly disposable income of ₹20,000 and you have to save for buying a home, marriage and retirement, the previous two goals will take precedence over retirement. You might allocate ₹8000 each for the first two goals and the remaining ₹4000 for retirement. On the other hand, if you only want to plan for marriage and retirement, you can save more towards retirement.
  • Expected returns from investmentThe expected returns from investment also determine how much you save. If you expect to earn high returns, you can save less and still create a good corpus. However, if the returns are low, you need to save more to create the desired corpus.
  • Calculated retirement corpusThe corpus that you want to create for retirement will affect your savings. A higher corpus will require higher savings than a lower corpus if the interest rate and investment horizon are constant.
  • Inflation rateInflation increases the prices of goods and services and thus affects your retirement corpus. If it increases the retirement fund, you will have to save more to tackle the inflationary effect.
  • Existing assetsExisting assets can help you fund your needs after retirement. As such, they reduce the required retirement corpus, which can be achieved with lower savings.
  • Existing liabilitiesIf you have existing liabilities that might continue even after retirement, you will need a bigger retirement fund to factor into the repayment of the outstanding debt. As the retirement corpus increases, so does the savings needed to build it.

The impact of inflation on retirement savings Inflation means a general rise in the price of goods and services. It is a common effect of economic growth. Inflation causes an increase in monthly expenses with time. As such, inflation is considered when calculating a suitable retirement corpus. The expected expenses post-retirement are calculated considering an average inflation rate every year. Then, the retirement corpus is calculated as sufficient to cover the inflated expenses.
Thus, inflation is important when calculating an adequate retirement corpus.

Retirement Plans by Bajaj Allianz Life Insurance CompanyBajaj Allianz Life offers different types of retirement plans to suit your retirement planning goals. These plans are as follows –


Bajaj Allianz Life Retirement Plans Features
Bajaj Allianz Life Saral Pension- Non-Linked, Non- Participating, Individual Immediate Annuity plan
  • Saral Pension is a single premium individual immediate annuity plan.
  • It provides lifelong guaranteed* regular income beginning from next month onwards from purchasing the policy.
  • It returns the purchase price^ to the nominee in the event of death of the policyholder.
  • It offers a joint-life option with regular income for both lives.
Bajaj Allianz Life Guaranteed Pension Goal II- A Non-Linked Non Participating Immediate & Deferred Annuity Plan
  • The plan offers both deferred and immediate annuity options with a deferment period of 1 year to 10 years.
  • The plan provides guaranteed* regular income throughout the life of assured as per their need and income payment choice.
  • It offers multiple premium payment terms under the deferred annuity option.
  • The plan offers multiple annuity options to choose from that are in line with your requirements.
Bajaj Allianz Life LongLife Goal III- A Unit-Linked Non-Participating Whole Life Insurance Plan
  • LongLife Goal is a unit-linked whole-life insurance plan.
  • Choose from two variants, LongLife Goal with waiver of premium and without waiver of premium.
  • The plan offers loyalty additions every year, beginning from the 5th policy year till the end of the 25th policy year.
  • It provides an option to receive regular income till 99 years with return enhancer, after the Age 55 years or after 10th Policy Year, whichever is later.

ConclusionFor a financially comfortable life after retirement, it is better to plan a retirement corpus in advance. The retirement calculator can help you in this respect as it can calculate and show the estimated retirement corpus that you would need. The calculator factors in your average expenses, inflation rate, years to retirement, assumed rate of return, etc., to find an adequate corpus.
Moreover, the calculator is free of cost. You can calculate the retirement corpus multiple times without any restrictions. So, use the calculator to find out your retirement fund and start investing towards it with suitable life insurance pension plans.

Frequently Asked Questions

A retirement corpus is the total savings or funds an individual requires to accumulate by the time they retire. The corpus is meant to support their financial requirements post-retirement when they are not working. A planned retirement corpus ensures a secure and comfortable post-work life. Factors such as expected lifespan, retirement goals, inflation, and healthcare costs are considered to determine the necessary annual savings amount.

There are two types of retirement or pension plans, including Immediate Annuity Pension Plans and Deferred Annuity Pension Plans. In an immediate annuity pension plan, you pay an upfront lump sum payment, and the annuity income starts immediately in deferred annuity pension plans, you can invest during your working years and plan to build a retirement corpus.

The necessary retirement corpus is not uniform for all individuals. It depends on various factors, such as your lifestyle, inflation, expected expenses, and investment returns. So, you should consider these factors and calculate the adequate corpus. Depending on your financial needs, it can be ₹ 1 crore or more.

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Risk Factors and Warning Statements Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz Life ACE, Bajaj Allianz Life Guaranteed Pension Goal II, Bajaj Allianz Life Guaranteed Wealth Goal are the name of the company and the products respectively and do not in any way indicate the quality of the product and its future prospects or returns. For more details on risk factors, terms and conditions please read sales brochure & policy document (available on www.bajajallianzlife.com) carefully before concluding a sale. Bajaj Allianz Life ACE - A Non linked, Participating, Individual Life Insurance Savings Plan, Bajaj Allianz Life Guaranteed Pension Goal II A Non-Linked Non-Participating Immediate & Deferred Annuity Plan, Bajaj Allianz Life Guaranteed Wealth Goal A Non-Linked, Non-Participating, Individual, Life Insurance Savings Plan. Regd. Office Address: Bajaj Allianz House, Airport Road, Yerawada, Pune - 411006, IRDAI Reg. No.: 116, CIN : U66010PN2001PLC015959, Call us on toll free No.: 1800 209 7272, Mail us : customercare@bajajallianz.co.in, Bajaj Allianz Life ACE (UIN: 116N186V02), Bajaj Allianz Life Guaranteed Pension Goal II (UIN: 116N187V02), Bajaj Allianz Life Guaranteed Wealth Goal (UIN:116N200V02) . The Logo of Bajaj Allianz Life Insurance Co. Ltd. is provided on the basis of license given by Bajaj Finserv Ltd. to use its “Bajaj” Logo and Allianz SE to use its “Allianz” logo. All charges/ taxes, as applicable, will be borne by the Policyholder.

*Conditions Apply – The Guaranteed benefits are dependent on policy term, premium payment term availed along with other variable factors. For more details please refer to sales brochure.

^Tax benefits as per prevailing Section 10(10D) and Section 80C of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.

The output generated through calculator are on the basis of the data filled in by you and is being provided to you solely for your reference purpose and not to be construed as investment advice. Please seek independent advice from your insurance consultant before making any investment decisions. While proper caution has been taken in designing this calculator, Bajaj Allianz Life Insurance Co. Ltd. assumes no liability for the accuracy of the information and data provided in this tool.

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