Instructions

1. Fill only cells in green

2. The worksheet is not protected so make a copy before proceeding
3. The sheet calculates annual annuity payable at the beginning of the year
4. investment for retirement is assumed to be made at the beginning of the month
5. The sheet assumes the investment for ret. will begin in Jan of the next year.
If you are already investing on a monthly basis you could expect a bigger corpus.
You could include this nformation suitably in the 'amt. inv. So far' cell
Comments, criticism, specific ways to improve the calculations and your thoughts on
goal plannning are welcome. M. Pattabiraman pattu@iitm.ac.in

Retirement Planner (Fill only cells in green)

Current year
Age at the end of current year
No of years you expect to work
Current monthly expenses
Other Annual expenses
factor in post-ret. additional expenses now itself(%)
years before retirement when equity investing stops
Expected inflation upto retirement
Expected inflation after retirement
Likely tax to be payed on corpus when you retire
Estimated years in retirement
Current Gross pre-tax Monthly Salary
Annual increase of monthly salary
initial equity alloc. (rest is taken as debt)
equity rate of interest (RoI)
debt rate of interest
Anticipated post-retirement rate of interest
Amount invested so far (end of current year)
rate of interest for this amount
Annual increase in monthly investment
Debt RoI in equity-free safe zone (< 5% please)
When you retire the amt invested so far will grow to
Current expenses per month (annual/12)
No of years for max equity allocation
Net corpus to be saved
Net rate of interest (pre-retirement)
Estimated tax rate on monthy pension
Expenses in the 1st year of retirement
Post-tax monthly pension in 1st year of retirement
Pre-tax monthly pension in 1st year of retirement
Corpus reqd. before tax deduction excl. passive income
Corpus reqd. after tax deduction excl. passive income

Have a present assured source of passive income?

(eg. rent from property) do NOT include potential future income

PASSIVE INCOME CALCULATION
Can make a huge difference to results so use with caution.
More realistic If you are close (~ 5 yrs) to retirement
If decades away from retiring use this only if you are the sole
owner (no siblings!) of a property. Better still dont depend on it!

2012
38
27
30000
10000
10.00%
3
8.50%
8.50%
25
100,000
13%
60.0%
10.0%
8.0%
8.0%
1800000
8.00%
13.00%
4.00%
11414125
33917
24
100,623,036
9.20%
6%
333,001
333,001
353,125
112,037,161
112,037,161

No

Use only rental income unless you have crores in the bank!
15000
10.00%

5000
2.00%

3000

* tax rate on passive inc. estimated similar to future mon. pension

If monthly investment reqd turns out negative(!) please go back
and check if the total current passive income is indeed assured

Initial monthly investment reqd is

Increasing each year by
with passive income initial monthly investment reqd is
each year this investment increases by

Rs.27,734
13%

Include expenses like vehicle service charges, AMCs on appliances etc. mediclaim premium. Excl
This will be added to your current expenses now it self. I use this more as a safety buffer
This many years before retirement all equity/MF investing stops. The corpus is then invested in de
Do not underestimate. Numbers will be rosy if you underestimate.
Some assume inflation a couple of decades later will be much lower than present due to economi
=0% if you use instruments like EPF, PPF, NPS and long-term equity which dont attract tax upon
Dont underestimate! Especially if you wish to retire soon.
Needed only for representation in cash flow chart

This is the most important parameter. If you dont stick to this the plan each year upto retirement,
Keep this low (SB returns are even fine). This way it is like a tax adjusted return in the equity-free

Overestimate by
10.00%
(entry in cell B8) as a safety measure. Set B8 to zero if you dont
Further investment upto retirement is also in debt. ('Equity-Free Zone')

Estimated assuming your current annual expenses = taxable income under present tax slab - the l
= initial monthly expenses when you retire

Optional Entires: You could factor in a % loss from equity(if applicable) and/or you could try out a month
If confused select 'NO' above and the values will not be used in the calculation
overall % loss from equity portfolio can withstand
Extra corpus if any

36,968,859

Remember: annual increase in monthly invest. is same above.

If you select 'YES' the Cash Flow charts will reflect the amount in the 'monthly amount you c
Do you wish to change the mon. investment
No
Monthly amount you can invest
26,500
Corpus you will accumulate

Your
Age
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75

Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049

Monthly
invest.
27,734
31,339
35,414
40,017
45,220
51,098
57,741
65,247
73,729
83,314
94,145
106,384
120,214
135,842
153,501
173,456
196,005
221,486
250,279
282,815
319,581
361,127
408,074
461,123
521,069
588,808
665,353

Expenses
33,917
36,800
39,928
43,321
47,004
50,999
55,334
60,037
65,140
70,677
76,685
83,203
90,276
97,949
106,275
115,308
125,109
135,743
147,282
159,801
173,384
188,121
204,111
221,461
240,285
260,709
282,870
306,914
333,001
361,306
392,017
425,339
461,493
500,720
543,281
589,460
639,564
693,927

CASH FLOW CHART

Present
Gross-salary
monthly
100,000
113,000
127,690
144,290
163,047
184,244
208,195
235,261
265,844
300,404
339,457
383,586
433,452
489,801
553,475
625,427
706,733
798,608
902,427
1,019,742
1,152,309
1,302,109
1,471,383
1,662,663
1,878,809
2,123,054
2,399,051
2,710,928

76
77
78
79
80
81
82
83
84
85
86
87
88
89
90

2050
2051
2052
2053
2054
2055
2056
2057
2058
2059
2060
2061
2062
2063
2064

752,910
816,908
886,345
961,684
1,043,427
1,132,119
1,228,349
1,332,758
1,446,043
1,568,956
1,702,318
1,847,015
2,004,011
2,174,352
2,359,172

Results
Use cash flow chart below to see the corpus appreciate/deppreciate
Surplus available at retirement (invested to create estate)
36,968,859
None!
13%

ces etc. mediclaim premium. Exclude life insurance premium

s more as a safety buffer
The corpus is then invested in debt. Let us call the 'Equity-Free Zone'

wer than present due to economic growth. Dont bet on it!

uity which dont attract tax upon maturity or withdrawal

e plan each year upto retirement, the plan will fail!

adjusted return in the equity-free zone.

easure. Set B8 to zero if you dont need this

ome under present tax slab - the likely post-retirement scenario

le) and/or you could try out a monthly invest. amount of your choice. Select 'YES' to use
ed in the calculation
you can afford to increase this until the 'Extra corpus' below turns 'red'
Increase monthly investment If extra corpus is negative (red).
Investible surplus available if it is positive (blue)

ount in the 'monthly amount you can invest' entry.

Use this if you wish to increase or decrease the monthly investment
Congrats! This should be enough
(for same inv. Schedule)

SH FLOW CHART
Mon. pre-tax Mon. post-tax
Annuity deriv. Annuity deriv.
from corpus
from corpus

Growth of
future
mon. inv.
363,427
807,534
1,345,886
1,994,095
2,770,109
3,694,549
4,791,084
6,086,863
7,613,003
9,405,148
11,504,097
13,956,528
16,815,809
20,142,931
24,007,557
28,489,220
33,678,682
39,679,473
46,609,643
54,603,744
63,815,084
74,418,281
86,612,159
100,623,036
123,021,591
135,290,781
149,006,021

353,125
383,140
415,707
451,042
489,381
530,978
576,112
625,081
678,213
735,861

333,001
361,306
392,017
425,339
461,493
500,720
543,281
589,460
639,564
693,927

Growth of
amt. inv.
so far
1,800,000
1,944,000
2,099,520
2,267,482
2,448,880
2,644,791
2,856,374
3,084,884
3,331,674
3,598,208
3,886,065
4,196,950
4,532,706
4,895,323
5,286,949
5,709,904
6,166,697
6,660,032
7,192,835
7,768,262
8,389,723
9,060,901
9,785,773
10,568,635
11,414,125

Total Corpus
accumulated
(year-end)
1,800,000
2,307,427
2,907,054
3,613,368
4,442,975
5,414,899
6,550,922
7,875,967
9,418,537
11,211,211
13,291,213
15,701,048
18,489,234
21,711,132
25,429,880
29,717,461
34,655,916
40,338,714
46,872,308
54,377,905
62,993,467
72,875,985
84,204,054
97,180,794
112,037,161
123,021,591
135,290,781
112,037,161
116,423,637
120,772,029
125,046,225
129,204,413
133,198,388
136,972,779
140,464,195
143,600,281
146,298,663
148,465,797

798,409
866,274
939,907
1,019,799
1,106,482
1,200,533
1,302,579
1,413,298
1,533,428
1,663,770
1,805,190
1,958,631
2,125,115
2,305,750
2,501,738

752,910
816,908
886,345
961,684
1,043,427
1,132,119
1,228,349
1,332,758
1,446,043
1,568,956
1,702,318
1,847,015
2,004,011
2,174,352
2,359,172

149,995,677
150,768,420
150,648,694
149,483,989
147,102,697
143,311,999
137,895,539
130,610,841
121,186,478
109,318,942
94,669,194
76,858,868
55,466,089
30,020,860
0

No

corpus avail. Investible

for annuity
Estate
(year-start)
available

36,968,859
107,799,664
111,825,953
115,783,542
119,633,716
123,331,841
126,826,647
130,059,440
132,963,223
135,461,725
137,468,330

138,884,886
139,600,389
139,489,532
138,411,101
136,206,200
132,696,296
127,681,055
120,935,964
112,209,702
101,221,242
87,656,661
71,165,619
51,357,490
27,797,093
0

IF YOU DONT HAVE A PASSIVE IN

Monthly
Expenses
37,308

Present
Gross-salary
monthly
100,000

2013
2014
2015
2016
2017
2018
2019
2020
2021

40,480
43,920
47,654
51,704
56,099
60,867
66,041
71,655
77,745

113,000
127,690
144,290
163,047
184,244
208,195
235,261
265,844
300,404

48

2022

84,354

339,457

49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77

2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051

91,524
99,303
107,744
116,902
126,839
137,620
149,318
162,010
175,781
190,722
206,933
224,523
243,607
264,314
286,780
311,157
337,605
366,301
397,437
431,219
467,873
507,642
550,791
597,609
648,405
703,520
763,319
828,201
898,598

383,586
433,452
489,801
553,475
625,427
706,733
798,608
902,427
1,019,742
1,152,309
1,302,109
1,471,383
1,662,663
1,878,809
2,123,054
2,399,051
2,710,928

Your
Age
38

Year
2012

39
40
41
42
43
44
45
46
47

Monthly
invest.

Monthly pre-tax
Annuity derived
from corpus

Monthly pre-tax
Annuity derived
from corpus

78
79
80
81
82

2052
2053
2054
2055
2056

974,979
1,057,852
1,147,770
1,245,330
1,351,183

83
84
85
86
87
88
89
90

2057
2058
2059
2060
2061
2062
2063
2064

1,466,034
1,590,647
1,725,852
1,872,549
2,031,716
2,204,412
2,391,787
2,595,089

OU DONT HAVE A PASSIVE INCOME THIS WORKSHEET IS IRRELEVANT AND HENCE BLANK
Growth of
future
mon. inv.

4,798,505
4,990,446
5,190,063

Growth of
amt. inv.
so far
1,800,000

Total Corpus corpus avail.

accumulated for annuity
(year-end) (year-start)
1,800,000

Investible
Estate
available

Pre-tax
Monthly Passive
Income
23,000

1,872,000
1,946,880
2,024,755
2,105,745
2,189,975
2,277,574
2,368,677
2,463,424
2,561,961

1,872,000
1,946,880
2,024,755
2,105,745
2,189,975
2,277,574
2,368,677
2,463,424
2,561,961

25,300
27,830
30,613
33,674
37,042
40,746
44,820
49,303
54,233

2,664,440

2,664,440

59,656

2,771,017
2,881,858
2,997,132
3,117,018
3,241,698
3,371,366
3,506,221
3,646,470
3,792,329
3,944,022
4,101,783
4,265,854
4,436,488
4,613,947

2,771,017
2,881,858
2,997,132
3,117,018
3,241,698
3,371,366
3,506,221
3,646,470
3,792,329
3,944,022
4,101,783
4,265,854
4,436,488
4,613,947
4,798,505
4,990,446

65,622
72,184
79,402
87,342
96,077
105,684
116,253
127,878
140,666
154,732
170,206
187,226
205,949
226,544
249,198
274,118
301,530
331,683
364,851
401,336
441,470
485,617
534,179
587,596
646,356
710,992
782,091
860,300
946,330

1,040,963
1,145,059
1,259,565
1,385,522
1,524,074
1,676,481
1,844,129
2,028,542
2,231,396
2,454,536
2,699,990
2,969,989
3,266,987

AND HENCE BLANK

Pre-tax
Monthly Passive
Income
23,000

Investible surplus
available each month
after retirement

25,300
27,830
30,613
33,674
37,042
40,746
44,820
49,303
54,233
59,656
65,622
72,184
79,402
87,342
96,077
105,684
116,253
127,878
140,666
154,732
170,206
187,226
205,949
226,544
249,198
274,118
301,530
331,683
364,851
401,336
441,470
485,617
534,179
587,596
646,356
710,992
782,091
860,300
946,330

-32,586
-29,883
-26,403
-22,025
-16,613
-10,012
-2,049
7,472
18,772
32,099
47,731

1,040,963
1,145,059
1,259,565
1,385,522
1,524,074

65,984
87,207
111,795
140,191
172,890

1,676,481
1,844,129
2,028,542
2,231,396
2,454,536
2,699,990
2,969,989
3,266,987

210,447
253,482
302,690
358,847
422,820
495,578
578,202
671,899