The Retirement Goal Tracker tool lets you know if you are in track to achieve your retirement goal. This is an extremely important tool that lets you determine your financial health & take corrective actions before its too late!
How does the Retirement Goal Tracker work?
The Retirement Goal Tracker works in three steps:
- First, it calculates the desired retirement savings for you based on your lifestyle, available time, etc.
- Next, it calculates the projected savings based on your existing investments, monthly contribution, etc.
- Finally, it does a gap analysis and presents the results
How to use the Retirements Goal Tracker
The Retirement Goal Tracker can be an extremely useful tool for planning & tracking your financial health. Lets consider the following broad scenarios to understand it’s usefulness.
When your Retirement Goal status is RED:
There are number of ways you can plan corrective actions by using the tool:
- Postpone retirement, by increasing the Retirement Age
- Reduce the monthly expenditure
- Increase the return on savings before retirement by choosing a more aggressive investment scheme
- Combination of the above
Using the tool you can try different combinations based on your preference until the status is GREEN.
When your Retirement Goal status us GREEN:
In this case also the tool can be useful in improving your overall quality of life:
- Prepone retirement, by reducing the Retirement Age. Spend more time doing things you always wanted to do
- Spend more, lead a more affluent life
- Use a more conservative investment scheme for your retirement savings to reduce risks
- Combination of the above.