Kotak Life
Close

Buy a Life Insurance Plan in a few clicks

Close

Now you can buy life insurance plan online.

Kotak e-Term Plan

Kotak e-Term Plan provides a high level of protection to your loved ones in your absence. Know more

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. Know more

Kotak E-Invest

Kotak e-Invest plan is a complete Unit-Linked Insurance Plan that can be customized as per your goals and needs. Know more

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. Know more

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! Know more

10 Steps to Figure Out How Much Money You Will Need After You Retire

10 Steps to Figure Out How Much Money You Will Need After You Retire
  • 16th Dec 2021 |
  • 416

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

1.Decide Retirement Age

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.

2.Calculate Monthly Expense After Retirement

Making a list of monthly expenses after retirement is the first step. The most usual expenses are

Grocery bills

Utility bills

House maintenance

Travelling

Pro Tip: Don’t forget to factor in inflation while calculating expense post-retirement.

3.Calculate Monthly Income After Retirement

The second step is to calculate monthly income after retirement. It could be

Pension from company

Pension from EPF

Income from a pension policy

Pro Tip: Any rental income must be calculated according to the estimated value post-retirement.

4.Calculate Net Income Required

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.

5.Calculate Future Value of Required Income

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.

6. Calculate Retirement Corpus

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.

7. Track and Review the Plan

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.

8.Calculate Current Corpus

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

PDF

PDF

NPS

● Pension plans

● Insurance policies

Pro Tip: Begin investing as soon as possible. Compounding is a powerful tool that should not be overlooked.

9.Calculate the Additional Corpus Required

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.

10.Calculate Additional Monthly Saving to Meet Additional Corpus

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.

Kotak e-Term Plan

Features

  • Nominal Cost
  • Multiple Plan Options
  • Flexible Payout Options
  • Critical Illness Rider
  • Tax Savings
  • Long term Coverage

Ref. No. KLI/22-23/E-BB/492

T&C

Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

Can Senior Citizens Avail Term Insurance?

Why Married People Should Buy Term Insurance Under MWP Act?

What Is a Passive Income? Why Should You Use It to Buy a Term Plan?

Insurance Policy for Housewife In India

Term Insurance Age Limit – Term Plan for All Age Groups

Do You Need Term Insurance Cover After Retirement?

Does Term Insurance Cover Accidental Death?

8 Benefits of Term Insurance You Should Know

5 Reasons to Buy Term Insurance When You are in Your 30s

What Happens to Term Insurance Plan With No Beneficiary - Kotak Life

Why Should You Buy Term Insurance in 2022?

Should You Have Multiple Term Life Insurance Policies?

How to Ensure That Your Term Insurance Claims Are Never Rejected?

Should Youngsters, Working Couples Buy Term Insurance Plans?

What is a short term insurance policy?

Are The Add-ons and Optional Features of Term Insurance Plans Actually Beneficial?

8 Things To Do After Buying Term Insurance

6 Reasons That Make Term Insurance a Must Buy

4 Things To Expect From Your Term Insurance Plan in India

How Much Cover Should I Take In A Term Plan?

Eligibility Criteria for Buying Term Insurance in India

Advantages of Buying Term Insurance in Your 50s

Why Should You Not Take A Term Plan Without Medical Test in India?

Can Non-Resident Indians (NRIs) Buy Term Insurance In India?

Is Life Insurance Investment Worthy Enough

How to Buy 1 Crore Life Insurance Policy Without Medical Test

What Types of Deaths Are Covered in a Term Insurance Plan?

Term Insurance Basics You Should Know

Reasons You Need Term Insurance Plan as a Self-Employed Person

8 Factors to consider before choosing a Critical Illness Insurance

Choosing Riders for Insurance Plans

Everything About Claim Settlement Ratio for Term Insurance

5 Benefits of Early Retirement Planning

Cost of Term Insurance Likely to Increase Soon

Term Insurance Calculator - Everythng You Need To Know

How Much Term Life Insurance Cover Do I Need in India?

Increasing Term Insurance and Riders

Does Your Term Insurance Plan Cover Death Due to COVID-19?

All you need to Know about Term Insurance Plans for Housewives

How To Change The Nominee in Term Insurance?

Buying A Term Insurance Plan? Take These Factors into Account

What Happens if you Hide Facts in your Term Insurance?

Buying A Term Insurance? Don't Ignore the Claims Settlement Ratio

Why Term Plan Should Be The First Step To Securing Your Future?

Key IRDAI Regulations That Changed Face Of Term Insurance Industry In 2020

Why Premium Amount for Term Insurance is So Low?

Can I Get Term Insurance on Behalf of My Spouse?

Is term Insurance Needed for People With No Dependents?

Protection for your family

Tips to Choose the Right Term Period for Term Insurance Plan

While Buying Term Insurance Compare Features, Not Just Premiums

Ensure Protection Against Death, Disease & Disability With Life Insurance

Is There Any Tax Benefit on Term Insurance?

Which Death Type Does Your Term Plan Not Cover?

What Are Insurance Riders and How to Choose Them in a Term Plan?

What Should Be The Duration Of Your Term Plan in India?

5 Term Insurance Benefits for Single Women

Insuring Protection Against Death With Death Insurance Rider

Planning For Son or Daughter's Wedding

Advantages & Disadvantages of Term Insurance in India

What is Critical Illness Policy

Can A Housewife Buy a Term Insurance Plan - All You Need to Know

Endowment Plans vs Term Plans: Understanding the difference

What Is a Renewable Term Insurance Policy?

Is It Good To Buy A Term Insurance Plan In 2022?

Why 1 Cr Term Plan Is Necessary For Family?

Term Insurance: Smokers vs Non-Smokers

What is the Right Term Period For Term Insurance Policy? Here's How You Should Choose!

Insuring yourself against Ill Health with a Critical Illness Rider

Different Types of Protection Plans

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

Understanding Term Insurance Riders

Term Plan with Spouse Cover

4 Reasons Why You Need Critical Illness Cover

Should You Buy a Term Plan After 40?

What is a Joint Term Insurance Plan? Key Benefits of Joint Term Plan

How To Choose the Right Term Insurance Plan?

How Much Term Insurance Do I Need

Term Insurance With Riders In India

Why Buy Term Insurance Plan With a High Cover?

Term Insurance – Why You Must Include In Your Financial Planning?

Importance of Term Insurance at Every Stage of Your Life

When is the Right Time to Buy Term Life Insurance Policy for Yourself?

Is a Term Insurance Policy Portable?

How To Calculate The Amount Of Term Life Insurance You Need?

How To Choose the Right Sum Assured Under a Term Plan?

9 Most Frequently Asked Questions on Term Insurance

Know How to Invest at Every Age for Larger Returns

Make Your Online Term Plan Your Familys Monthly Payout

Term Insurance: What Happens When You Don’t Pay Your Premiums?

Top 3 Reasons Why You Should Buy A Term Plan Now

What is Form 16, Form 16 part A, Form 16 part B, Information Required and FAQs

Tax Benefits of Term Insurance in India

How to Surrender Term Life Insurance When you have No Liabilities

Calculating Term Insurance Premium

Insuring Against Disability With Disability Insurance Rider

Term Life Insurance Plan for Smokers vs Non-Smokers

Why does every working woman need life insurance?

What is Insurance Premium - A Detailed Guide

Can I Extend the Tenure of My Term Insurance Plan?

Can I Buy Term Insurance for a COVID-19 Patient?

Term Insurance Plans and Policies for Smokers

Why Term Insurance Is Better Than ULIP?

What Are the Best Term Insurance Plans for Planning Retirement?

Do I Need to Give a Medical Test for Term Insurance in India?

Why Should New Parents Buy Term Life Insurance?

Which Term Insurance to Choose: Lump Sum or Staggered Pay-out Plan?

What Is the Correct Age to Buy Term Insurance?

Is Group Term Life Insurance Provided By Employer Sufficient?

What are the Documents Required for Term Insurance Plan?

Online vs Offline Term Insurance: Which Is The Better Option To Buy

Term Vs. Whole Life Insurance: Which One You Should Buy in India?

Insuring Against Accidents with an Accidental Death Insurance Rider

Why Buying a Term Plan Is Smarter Than Traditional Life Insurance Products

Term Insurance with Critical Illness

How to Identify Term Insurance According to Your Needs?

Is Term Life Insurance Plan an Investment or Expense?

4 Methods to Calculate How Much Term Insurance You Need

Make Your Online Term Plan Your Family's Monthly Pay Cheque

Why Should You Add a Rider to a Term Insurance Plan?

Can Term Insurance Plans Be Purchased As A Gift?

What All Documents Required For Term Insurance In India?

Individual Life Insurance vs. Group Term Life Insurance

How Does Term Life Insurance Work? Learn the Benefits

6 Types of Death not covered in Term Insurance Plan

Is ₹1 Crore Term Insurance Good Enough Cover?

All About Term Insurance Inbuilt Coverage

9 Ways to Help Family Members in Financial Trouble

Why Surrendering Your Term Plan Policy In The Final Phase Maybe A Bad Idea?

Can You Increase Your Term Insurance Cover?

How Does A Term Life Insurance Work in India?

10-Year Term Life Insurance Policy - Explained in Detail

Ideal Features of a Suitable Term Plan - Act Now for a Stress-free Future

Comparing Term Plans – What Should You Look Out For

Why Term Insurance Is Important in times of COVID-19?

How to Compare Term Insurance Online

Why should single women purchase term life insurance?

Term Plans are Definitely Cheaper than You Think!

5 Things To Consider While Buying Term Insurance Plan

Why Buy Term Insurance Even at Rising Rates?

Best Investment Plans for Children - Secure Your Child's Future

What are incremental term insurance plans?

What Should You opt for - Limited or Premium Pay?

Steps on How to Buy Term Insurance Online

Planning For Children's Future

Busting Myths and Facts About Term Insurance Policies

What is Term Insurance - A Complete Guide

Term Insurance: Most Common Term Insurance Myths Explained | Kotak Life

Can I Make Changes to My Term Insurance Policy Post Purchase?

Is it a Good Time to Buy Term Insurance During the COVID-19 Pandemic?

Key Differences Between Term Insurance, ULIPs, And Health Insurance

How Not To Get Your Term Insurance Claim Rejected

Do Beneficiaries Pay Taxes on Term Insurance?

Gift Your Father A Term Insurance Plan This Father's Day

Difference between Term Insurance and Life Insurance

Different Types of Premium in Term Insurance

Why is it important to buy term insurance plan?