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

Inflation: A Key Factor to Consider into Retirement Planning

Inflation: A Key Factor to Consider into Retirement Planning
  • 27th Aug 2021 |
  • 552

Investment in a retirement plan can be rewarding in the future only if you plan wisely, keeping in mind all the critical factors. Inflation is one such factor that plays a vital role in analysing your requirements during retirement years.

Let’s understand further the inflation factor and its significance.

What is Inflation?

The inflation percentage signifies the average price change of various goods and services, including food, housing, transport, entertainment, etc., over the year. It indicates the downfall in the purchasing power of a single unit of currency. As inflation increases, this purchasing power of money decreases, thereby making your living expenses go higher.

Why is Inflation a Significant Factor While Planning Your retirement?

Since the value of money decreases with time, it shoots up our expenses every year, which is indicated by the inflation rate. If we look at India’s inflation rate for the last two years, it was 4.76% for 2019 and 6.2% for 2020.

When you plan your retirement, which is 20-30 years ahead, your monthly expenses are expected to be way higher in the future than today if we consider this yearly inflation. Hence, to arrive at an effective estimate of your financial requirements during retirement, you must apply an approximate inflation rate while calculating the retirement corpus.

Let’s understand this with an example.

Your yearly expenses stand at Rs. 2,00,000 for the current year. Assuming a consistent inflation rate of 3% yearly, you will need 2,03,000 Rs to address the same expenses next year. Similarly, it becomes 2,09,090 Rs for the second year. Hence, it keeps on going up every year till your retirement and even beyond, resulting in a whopping amount.

Therefore, without considering the inflation, a retirement savings plan cannot be effective enough to address your finances during retirement years. While the commodities will be inevitably costlier in the future, the medical and healthcare expenses will also be higher by the time you plan to retire. Hence, estimate the future medical costs considering inflation and your age when you may need extra medical care and support.

How to Estimate the Retirement Corpus Using Inflation?

It is convenient and easy to calculate the corpus while including inflation as an important factor, using the online retirement corpus calculators. Most leading banks and financial institutions offering retirement plans provide such calculators on their websites. It takes, as an input, various parameters, such as your current monthly expenses, years left for retirement, expected inflation rate, expected ROI, etc., and generates the corpus figure accordingly. rel=“nofollow” Use Kotak retirement corpus calculator to determine the investment you need to make to meet the financial goals by the time you retire.

Without a proper estimation of the corpus, a retirement plan may fail to support you financially during your retirement years. You can use the various online resources to compare the different plans, know the terms and conditions and make an informed purchase decision. Additionally, investing in a retirement plan online is easy; you can do it from the comfort of your home and stay on top of the investments.

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

Is ₹1 Crore Term Insurance Good Enough Cover?

Is Term Life Insurance Plan an Investment or Expense?

Term Life Insurance Plan for Smokers vs Non-Smokers

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

How to Buy 1 Crore Life Insurance Policy Without Medical Test

Endowment Plans vs Term Plans: Understanding the difference

Importance of Term Insurance at Every Stage of Your Life

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

Is Group Term Life Insurance Provided By Employer Sufficient?

Difference between Term Insurance and Life Insurance

Can Senior Citizens Avail Term Insurance?

Planning For Son or Daughter's Wedding

Can You Increase Your Term Insurance Cover?

Ensure Protection Against Death, Disease & Disability With Life Insurance

Top 3 Reasons Why You Should Buy A Term Plan Now

Is term Insurance Needed for People With No Dependents?

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

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

Term Insurance Plans and Policies for Smokers

What All Documents Required For Term Insurance In India?

Cost of Term Insurance Likely to Increase Soon

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

Comparing Term Plans – What Should You Look Out For

How Much Cover Should I Take In A Term Plan?

What is Critical Illness Policy

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

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

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

6 Types of Death not covered in Term Insurance Plan

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

Know How to Invest at Every Age for Larger Returns

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

Why Term Insurance Is Better Than ULIP?

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

How Not To Get Your Term Insurance Claim Rejected

Advantages of Buying Term Insurance in Your 50s

Why Should New Parents Buy Term Life Insurance?

Understanding Term Insurance Riders

What is Term Insurance - A Complete Guide

Insurance Policy for Housewife In India

Is a Term Insurance Policy Portable?

Why Married People Should Buy Term Insurance Under MWP Act?

9 Most Frequently Asked Questions on Term Insurance

Eligibility Criteria for Buying Term Insurance in India

Term Insurance Basics You Should Know

All About Term Insurance Inbuilt Coverage

Why 1 Cr Term Plan Is Necessary For Family?

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

Advantages & Disadvantages of Term Insurance in India

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

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

Term Plan with Spouse Cover

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

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

Term Plans are Definitely Cheaper than You Think!

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

How to Identify Term Insurance According to Your Needs?

Why Should You Buy Term Insurance in 2022?

8 Things To Do After Buying Term Insurance

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

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

All you need to Know about Term Insurance Plans for Housewives

4 Reasons Why You Need Critical Illness Cover

Why Buy Term Insurance Even at Rising Rates?

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

Is There Any Tax Benefit on Term Insurance?

What is Insurance Premium - A Detailed Guide

While Buying Term Insurance Compare Features, Not Just Premiums

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

What are incremental term insurance plans?

Insuring Against Accidents with an Accidental Death Insurance Rider

Term Insurance Calculator - Everythng You Need To Know

Individual Life Insurance vs. Group Term Life Insurance

How To Change The Nominee in Term Insurance?

What Are the Best Term Insurance Plans for Planning Retirement?

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

Choosing Riders for Insurance Plans

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

Which Death Type Does Your Term Plan Not Cover?

Why does every working woman need life insurance?

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

Different Types of Protection Plans

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

Insuring Protection Against Death With Death Insurance Rider

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

How Much Term Insurance Do I Need

Is Life Insurance Investment Worthy Enough

Planning For Children's Future

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

10-Year Term Life Insurance Policy - Explained in Detail

Term Insurance with Critical Illness

Term Insurance Age Limit – Term Plan for All Age Groups

6 Reasons That Make Term Insurance a Must Buy

Increasing Term Insurance and Riders

Should You Have Multiple Term Life Insurance Policies?

Can Term Insurance Plans Be Purchased As A Gift?

5 Benefits of Early Retirement Planning

Tax Benefits of Term Insurance in India

Buying A Term Insurance Plan? Take These Factors into Account

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

9 Ways to Help Family Members in Financial Trouble

Insuring Against Disability With Disability Insurance Rider

How to Compare Term Insurance Online

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

Do Beneficiaries Pay Taxes on Term Insurance?

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

Why is it important to buy term insurance plan?

How To Choose the Right Term Insurance Plan?

What Should You opt for - Limited or Premium Pay?

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

Term Insurance: Smokers vs Non-Smokers

5 Term Insurance Benefits for Single Women

Does Term Insurance Cover Accidental Death?

Tips to Choose the Right Term Period for Term Insurance Plan

Steps on How to Buy Term Insurance Online

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

What Is the Correct Age to Buy Term Insurance?

What is a short term insurance policy?

Should Youngsters, Working Couples Buy Term Insurance Plans?

Key Differences Between Term Insurance, ULIPs, And Health Insurance

Calculating Term Insurance Premium

Protection for your family

Can I Extend the Tenure of My Term Insurance Plan?

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

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

How Does A Term Life Insurance Work in India?

8 Benefits of Term Insurance You Should Know

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

Make Your Online Term Plan Your Familys Monthly Payout

Can I Get Term Insurance on Behalf of My Spouse?

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

How to Surrender Term Life Insurance When you have No Liabilities

What are the Documents Required for Term Insurance Plan?

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

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

Insuring yourself against Ill Health with a Critical Illness Rider

Why Buy Term Insurance Plan With a High Cover?

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

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

Busting Myths and Facts About Term Insurance Policies

Do You Need Term Insurance Cover After Retirement?

4 Things To Expect From Your Term Insurance Plan in India

Different Types of Premium in Term Insurance

Term Insurance With Riders In India

What Is a Renewable Term Insurance Policy?

Why should single women purchase term life insurance?

Why Premium Amount for Term Insurance is So Low?

What Happens if you Hide Facts in your Term Insurance?

How Does Term Life Insurance Work? Learn the Benefits

8 Factors to consider before choosing a Critical Illness Insurance

Should You Buy a Term Plan After 40?

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

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

Everything About Claim Settlement Ratio for Term Insurance

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

5 Things To Consider While Buying Term Insurance Plan

4 Methods to Calculate How Much Term Insurance You Need