Retirement planning encompasses the plans and actions that individuals take to prepare a smooth transition from a life based mainly around working to a life based mainly around not working. Formal process of setting aside funds on a mathematical basis to provide deferred income benefits is termed as retirement plan.
The process of planning for retirement, specifically in terms of making financial plans. Most often, retirement planning involves depositing money into a retirement account, and purposefully saving money for the future.
Calculate the retirement plan for the given details:
How much you have?: 500000
How many years do you have until you retire?: 5
Annual Income when you Retire: 30000
Passive Annual Income in Retirement: 5000
(Ex: Pension, Rents)
Income needed in Retirement: 34778.22
Additional Income needed in Retirement: 29778.22
Additional principal Needed NOW: 174293.43