Calculating Retirement Corpus

Calculating retirement Corpus
Formula
Sample calculation -
Years to retirement = 25,
Present Montly Expenses
= 15000,
Rate of Inflation = 5%,
Rate of Interest
after retirement (RIA)= 8%
 Rate of Interest
before retirement(RIB) = 11%

Estimated
Future Cost of Living
Present Cost*(1+Rate of Inflation)^No of Years for Retirement
609,544
Corpus RequiredFuture Cost/RIA
7,619,299

Yearly Savings
Reqd
Corpus*RIB/(((1+RIB)^Years to retirement-1)*(1+RIB))
59,995

2 comments

Lump Sum Annuity said...

Check out for more at : http://www.jagoinvestor.com/2009/07/6-steps-of-doing-retirement-planning-by.html


Lump Sum Annuity

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