Kotak e-Term Plan
Kotak e-Term Plan provides a high level of protection to your loved ones in your absence.
Kotak Guaranteed Savings Plan
Kotak Guaranteed Savings Plan is a savings and protection plan that helps you achieve long-term financial goals and provides an insurance cover against any eventuality.
Kotak E-Invest
Kotak e-Invest plan is a complete Unit-Linked Insurance Plan that can be customized as per your goals and needs.
Kotak Health Shield
Kotak Health Shield Plan helps secure your finances in sudden medical expenses such as Cardiac, Liver, Neuro, and Cancer (all early and significant illness stages/conditions of cancer), along with offering protection for personal accidents - in case of accidental death or disability.
Kotak Lifetime Income Plan
Kotak Lifetime Income Plan gives you the security of your income continuing throughout your life and in your absence throughout your spouse's lifetime!
Retirement is supposed to be a time of tranquillity and responsibility-free living. It is essential to start retirement planning as soon as you start earning to ensure no financial worries later on. The challenge is to figure out how much money you will need for a comfortable life after retirement. It is a common notion that retirement planning is a complicated matter, but it isn’t.
Let’s discuss ten ways to calculate post-retirement corpus.
Although the most prevalent age to retire in India is 60, many people want to retire early so they may pursue a hobby, travel the globe, or do volunteer work. Determining the retirement age will assist in figuring out how much money will be needed to retire comfortably.
Pro Tip: It is advisable to consider life expectancy while deciding the retirement age and money needed at the time of retirement.
Making a list of monthly expenses after retirement is the first step. The most usual expenses are
Pro Tip: Don’t forget to factor in inflation while calculating expense post-retirement.
The second step is to calculate monthly income after retirement. It could be
Pro Tip: Any rental income must be calculated according to the estimated value post-retirement.
The net income required is calculated by deducting monthly expenditure from monthly income.
Pro Tip: If monthly expenditure is Rs. 50,000 and monthly income is Rs. 30,000, then net income required is Rs. 20,000.
Everyone has the option of retiring at a different age- the additional income required must be calculated according to inflation at that time.
Pro Tip: Experts advise using 6% inflation, the average of the past 10 years, in calculations.
The total amount of money accessible at retirement is referred to as the retirement corpus. Since life expectancy is constantly increasing, it might be a bit tricky to calculate the retirement corpus. Retirement planning, according to experts, should be done until the age of 90.
Pro Tip: Since the retirement corpus must last 25-30 years after retirement, it is best to allocate a portion of the assets towards equity growth.
Once the retirement plan is put into action, it is important to review it periodically. If there are any sudden changes in the financial situation, they must be factored into the plan and adjusted accordingly.
Pro Tip: At least once a year, the retirement plan should be examined to see if it is on track to fulfil the goal.
The majority of people would have also built up a retirement fund through various financial instruments. Add them all together to find out how much money you have set up for retirement.
The different instruments are
Pro Tip: Begin investing as soon as possible. Compounding is a powerful tool that should not be overlooked.
To determine how much extra corpus is needed to accomplish the retirement target, subtract step 6 from step 8.
Pro Tip: Remember that these are estimates that are modified for inflation in the future. Taking the worse numbers will aid in better planning.
Don’t be alarmed if the computations yield a large figure. People who begin investing at an early age will have a long time to accumulate the required retirement fund.
Pro Tip: Keep your financial knowledge up to date. It will go a long way towards establishing the necessary retirement corpus.
Striking a balance between reasonable return expectations and a desired level of living is one of the most difficult components of building a thorough retirement plan. Focus on building a flexible portfolio that you can modify frequently to reflect changing market circumstances and retirement goals.
Ref. No. KLI/22-23/E-BB/492
