Savings and inflation
Retirement planner
Work out the corpus you need to retire and the monthly saving that gets you there.
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Corpus needed on the day you retire
PKR 281,649,955.33
- Spending in your first month of retirement
- PKR 1,006,265.69
- What your saving grows to by then
- PKR 0
- Shortfall
- PKR 281,649,955.33
- Extra to save each month to close it
- PKR 79,789.48
How it is calculated
Spending in the first month of retirement = spending today x (1 + inflation)^years to retire.
The corpus needed is what pays that spending at the start of every month for the years of retirement, raised each year by inflation, while the corpus earns the return after retirement.
What you save grows at the return before retirement: your saving so far and the monthly saving, each added at the start of its month.
Shortfall = corpus needed - what your saving grows to (never below 0). The extra monthly saving is the amount that would grow to the shortfall.
The corpus and the extra saving are rounded UP to the paisa once, so they are never short.
Assumptions
- Prices rise by 8% a year, before and during retirement.
- The return is 12% a year before retirement and 8% a year after it, added each month.
- Savings go in at the start of every month, and the monthly spending is paid at the start of every month.
- No pension, property income or other money is counted.
- No fees, charges or tax are taken off.
Results are worked out from the figures you enter and are only estimates. They are not advice.
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