Retirement planning with annuity details

Hi friends,

We all had been doing financial investments in different avenues viz. FD, PF, mutual funds, stocks, real-estate, gold, painting etc etc. However, one of the consistent pondering fundamental question for me, whether it will fulfill my retirement plans. This eventually leads to subsequent question, whether I had defined my retirement goals appropriately. Thankfully, in one of the finance class @ IIMB, we did this exercise. I have prepared the file and am uploading the file Retirement planning tool

This is hopefully simple and we need to enter following data for retirement planning (in the input sheet):

a. Current age

b. Anticipated retirement age

c. Inflation rate (enter in decimals for eg. 5% as 0.05)

d. Saving Rate (enter in decimals for eg. 12% as 0.12. You can put average rate based on your investments – MF, stocks, FD, PPF etc)

e. Enter your current lifestyle amount (per annum. Ideally you should discount liabilities like home loans etc. In any case, thats an individual choice. However this has to be realistic and can be played upon. Pls note, idea is you should maintain current lifestyle minus income.)

f. Life expectancy (Age until when you expect to receive pension)

Results reading:

There are few complex computed cells. However the important ones are

a. Future value of pension (Current lifestyle @ future time)

b. Savings (per annum required to achieve that. This consider inflation rate, saving rate what is key-in in the input sheet). – This should be your annual saving goals to fulfill your retirement dreams.

What else, thats it play around inputs and find your retirement goals.

Any queries, please shoot.


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2 Responses to Retirement planning with annuity details

  1. Atul says:

    Hi Sir…

    I used the xl sheet, I now atleast know… What should be my annual savings…
    Will plan rest of the things accordingly…

    Thanks & regards,

  2. amal says:

    Good to know it helped you. Let me know if this needs to be extended.


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