Retirement Calculator

INPUT DATA CALCULATION

TABLE 1

Plan Information Retirement Needs

Current Age 35 Salary During R
Age at Retirement 55 Total expected receivable money
Years to Pay Out After Retire. 25 Total Needed to
Years to Invest Before Retire. 10 Tota
Years to save money to invest 10 TABLE 2
Rates Retirement planning
Return Before Retirement 13.20%
Return After Retirement 13.20% Option1: Deposit in the Sacombank
Salary Interest rate 6.80%
Current monthly Salary 40,000,000 Period: 1/1/2021 to 31/12/2041
Monthly savings VND 10,000,000
Option2: Invest in Ecopark bonds
After retirement expense (Estimated) Interest rate 13.2%
Living expenses ( electricity, gas, water, food & drink, ...) VND 5,000,000 Period 1 (save): 1/1/2021 to 31/12/2031
Emergency fund (medicine, …) VND 3,000,000 Invest 1.2 billion in Ecopark bond: 1/1/2032 to 31
Entertainment (travel, shopping….) VND 2,000,000 Period 2 (save): 1/1/2032 to 31/12/2041
Total monthly expense VND 10,000,000
--> Choose option 2

TABLE 3: The money received after 20 years

Age Year Annual savings Interest rate Interest Cumulative Interest Balance
 35 2021 VND 0 0% VND 0 VND 0 0 VND
36 2022 VND 120,000,000 0% 120,000,000 VND120,000,000.000 120,000,000 VND
37 2023 VND 120,000,000 0% 120,000,000 VND240,000,000.000 240,000,000 VND
38 2024 VND 120,000,000 0% 120,000,000 VND360,000,000.000 360,000,000 VND
39 2025 VND 120,000,000 0% 120,000,000 VND480,000,000.000 480,000,000 VND
40 2026 VND 120,000,000 0% 120,000,000 VND600,000,000.000 600,000,000 VND
41 2027 VND 120,000,000 0% 120,000,000 VND720,000,000.000 720,000,000 VND
42 2028 VND 120,000,000 0% 120,000,000 VND840,000,000.000 840,000,000 VND
43 2029 VND 120,000,000 0% 120,000,000 VND960,000,000.000 960,000,000 VND
44 2030 VND 120,000,000 0% 120,000,000 VND1,080,000,000.000 1,080,000,000 VND
45 2031 VND 120,000,000 0% 120,000,000 VND1,200,000,000.000 1,200,000,000 VND

INVEST 10 13.2% 4,146,154,817 VND

Age Year Annual savings Interest rate Interest Cumulative Interest Balance
46 2032 VND 120,000,000 0% 120,000,000 VND120,000,000.000 120,000,000 VND
47 2033 VND 120,000,000 0% 120,000,000 VND240,000,000.000 240,000,000 VND
48 2034 VND 120,000,000 0% 120,000,000 VND360,000,000.000 360,000,000 VND
49 2035 VND 120,000,000 0% 120,000,000 VND480,000,000.000 480,000,000 VND
50 2036 VND 120,000,000 0% 120,000,000 VND600,000,000.000 600,000,000 VND
51 2037 VND 120,000,000 0% 120,000,000 VND720,000,000.000 720,000,000 VND
52 2038 VND 120,000,000 0% 120,000,000 VND840,000,000.000 840,000,000 VND
53 2039 VND 120,000,000 0% 120,000,000 VND960,000,000.000 960,000,000 VND
54 2040 VND 120,000,000 0% 120,000,000 VND1,080,000,000.000 1,080,000,000 VND
55 2041 VND 120,000,000 0% 120,000,000 VND1,200,000,000.000 1,200,000,000 VND
TOTAL RECEIVED MONEY 5,346,154,817 VND

Salary During Retirement (in today's VND) VND 40,000,000
pected receivable money per month after retirement VND 17,000,000
Total Needed to Fund 100% of Retirement VND 5,100,000,000
Total saved money in 10 years VND 1,200,000,000
Sacombank
FV VND 5,084,585,504
to 31/12/2031 FV VND 1,200,000,000
ark bond: 1/1/2032 to 31/12/204 FV1 VND 4,146,154,817
to 31/12/2041 FV2 VND 1,200,000,000
Total amount VND 5,346,154,817
Documentation
Mess: Mrs Linh is 35 years old and she is a financial manager of real estate comp
wants to retire at 55 and wants her pension to be 17 million per month when she
years later. Now, Mrs Linh’s income is 40 million per month and 10 million in sa
Suppose the interest rate of Sacombank is 6.80% and the interest rate of Ecopark
13.20%.
Purpose:
This model to set Mrs Linh retirement goal, estimate the amount of money each m
will need after retirement and help her savings retirement money from now.
Guide:
I. Calculate the amount of money that Mrs Linh received after deposit in the ban
1. Find the amount of monthly savings
2. Find the number of months:
n = (Desired retirement age – Current age) * 12
3. Find monthly interest rate
Monthly interest rate = Annual interest rate/12
4. Find the future value that Mrs Linh will receive after deposit in the bank
Future value = amount of monthly savings * ((1+ Monthly interest rate)^ number
-1)/ Monthly interest rate
II. Calculate the amount of money that Mrs Linh will receive after invest in bond
1. Find the amount of 10 years savings
Future value = (amount of monthly savings*12)*10
2. Find the future value that Mrs Linh will receive after invest in bonds
Future value = the amount of 10 years savings*(1+interest rate)^number of years
III. Calculate yearly savings
1. Find annual savings
Annual savings = amount of monthly savings*12
2. Find cummulative interest
Cummulative interest year 2 = Cummualtive interest year 1 + Interest year 2
3. Find account balance
Balance = Cummulative interest through each year
 anager of real estate company. She
lion per month when she retires 25
month and 10 million in savings.
e interest rate of Ecopark bonds is

e amount of money each month she

nt money from now.

ed after deposit in the bank

er deposit in the bank

hly interest rate)^ number of months

ceive after invest in bonds

er invest in bonds
est rate)^number of years to invest

ar 1 + Interest year 2