# A Set of Easy To Use Online Retirement Calculators

Here is a set of easy to use online retirement calculators created by Arunram, a certified financial risk management professional. Arun had pointed out a bug in my FU Money Calculator and shared this set of tools over email. We also met at the Delhi DIY meet last month. I requested him to share this on freefincal and he readily agreed.  The DIY community thrives on such meaningful contributions from intelligent investors and professionals.

Here is a write up by Arun with some screenshots from the tool. It renders will on desktop and mobile. It is a simple way to discuss the retirement problem with your friends and colleagues.

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This Calculator Suite Consists of 3 parts

## 1. Retirement Calculator

We can answer a few questions using this calculator.
1. What is the retirement corpus that I need when I retire?
2. What should be my monthly investment and what rate should it increase to provide for all expenses during retirement?
3. If the current expenses and current investments (at the given rate) continue, how long the corpus can last?
4. What will be my net worth at retirement?
5. And most importantly, when can I retire?
We need the following inputs.
Age:  Current Age
Current Corpus:  The current amount in the retirement kitty
Corpus CAGR: The annual growth rate for the corpus assumed from current age till the life expectancy
Current Monthly Expense: The expenses required per month for day-to-day living.  (Not providing for other goals)
Inflation: Assumed to be the same from the current age till the life expectancy
Retirement Age(Years): At what age one retires – the corpus is assumed to be untouched till the retirement age
Life Expectancy (Years): How many years that one expect to live?  Corpus is expected to provide for the expenses till this point in time.
Monthly Investment: How much can be provided per month towards corpus building?
Investment Yearly Increase: This monthly investment provided in the previous input is expected to increase at this rate every year.
It may not be advisable to contribute the same amount for next 30 years, so we need a yearly increase.
Save After Retire?: Investments are assumed to be continued and added to corpus even after retirement.
Use it with caution: This does not provide for any other goals like children higher education, marriage, vacation planning and other one-off expenses.
When someone assumes a life expectancy of 80+ years, there might be multiple occasions where such items like fridge, tv, vehicles have to be replaced,
home needs to be refurbished and refurnished.

## 2. Annuity Calculator

This calculator can be used for someone who is already in retirement and has already provided for emergency, replacement (home refurnishing at self-accepted regular intervals) and goal based (marriage, education etc) expenses.
Given a corpus at hand, and you know how far you need to go, at what rate (Rs or \$ per month) can you afford to spend?   This assumes no income being generated during the spending phase. A simple analogy is like crossing a desert with pre-stored food and water.

We may not get any resources of food and water during the journey, but if you find an oasis, it is a bonus. There is an option given where you can postpone touching the corpus for a certain point in time.  To provide for the case that there are some minor avenues of income generation which will just provide for the day-to-day expenses, post-retirement so that the corpus is kept untouched.

In the current context, the word retirement is used as a stage where the usual income generation activity stops and consumption phase from retirement kitty starts.
Giving an example in terms of Rupees: (There is no currency marked on the application, can be used for any currency)
Assume someone at age 60 has to retire today and has a life expectancy of 80 years.  The current retirement corpus is Rs 50 Lakhs.   So, this has to last for 20 years.  The person starts consuming out of the corpus immediately (Corpus untouched for 0 years).
If the corpus annual growth rate is 10% and the inflation is 8%, he can expect to withdraw starting Rs 3,25,544 (approx Rs 27,000 per month)  to have the corpus last for the next 20 years.  This monthly withdrawal amount of Rs 27,000 can be increased 8% every year  (first 12 months: Rs 27,000; next 12 months Rs 29,300 etc) to provide for the inflation.
Assuming a CAGR of 9% and inflation of 8%,  this Rs 3,25,544 drops to Rs 2,97,016 per year (Rs 24750 per month)

## 3. Corpus Calculator

In Annuity calculator, we got to know how much can the maximum expenditure per month be, so that we do not run out of corpus ever in life time.
Here, once we set our monthly requirement and the number of years expected to have such requirement (assuming inflation),  we can calculate how much the corpus should be?
Other inputs needed in this calculator (same as in Annuity calculator):
Corpus CAGR – Annual Growth Rate of the corpus?
Corpus untouched for – How many years we expect the corpus to be untouched? –  Someone nearing a retirement thinks he has some corpus which can be used in the retirement phase and for the next few years he can expect to just provide for the expenses with the current income, with  no plans of adding to the corpus.
Let us say someone having an expense of Rs 1 Lakh per month (Required Annuity: 1.2 million or 12 lakhs per year) With a Corpus CAGR of 10% and an inflation of 8%, he needs Rs 19.91 million (approx Rs 2 Crore) to last him for 20 years.
There is no currency marked on the application and so this can be used for any currency.

## Link to the online retirement calculator suite

https://arunatma.shinyapps.io/finutils/

Please join me in thanking Arunram for this fantastic tool.

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## 2 thoughts on “A Set of Easy To Use Online Retirement Calculators”

1. Sid says:

Hi Pattu,

The link might be broken. Could you please check if you are also seeing the same issue. These calculators seem to be good ones just like the ones you have shared. Hope more people keep sharing. Thanks Arun.

Regards,
Sid

2. I couldn’t find the contact details of the author of the tools, so posting feedback here. It’ll be nice if the retirement calculator allowed specifying different CAGRs before and after retirement.