Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak Guaranteed Fortune Builder

A plan that offers guaranteed income for your future goals. Know more

Kotak e-Term

Protect your family's financial future. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and life cover. Know more

Kotak e-Invest

Insurance and Investment in one plan. Know more

Kotak Lifetime Income Plan

Retirement years are the golden years of life. Know more


Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

10 Steps to Figure Out How Much Money You Will Need For Your Post Retirement Plans

It is essential to begin your retirement planning as you start earning to ensure no financial worries later on. Let's discuss 10 ways to calculate your post retirement plans.

  • Aug 27, 2021

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 Life Time Income Plan

Download Brochure


  • 6 Plan Options
  • Tax benefits ^
  • Higher annuity rates for higher purchase price
  • 4 Annuity Modes

Ref. No. KLI/23-24/E-BB/1052


- A Consumer Education Initiative series by Kotak Life

Similar Articles

Managing Your Money After You Retire

How To Calculate The Present Value And Future Value Of Annuities?

How to Protect Your Retirement Account from Hackers

Know the Pros and Cons of Retirement Annuities

How Has NPS Performed in Comparison with Other Instruments?

How Does NPS Work?

Turbocharge Your Retirement Savings with Annuities: Unlock Greater Returns

Plan Your Retirement in India - Retirement Calculator

Retirement: A New Start to Life!

Is an Annuity a Good Investment Option?

Retirement Planning at 50? You Are Still Good to Go

Guide to Long Term Investment

Important Questions To Ask Yourself Before Choosing A Good Retirement Plan

Importance of Retirement Planning

What are the Rules for Exit From NPS?

How should one decide on fund allocation within NPS?

What are the Differences Between ELSS ULIP and Mutual Funds?

ULIPs or Pension Plans – Which is a Better Retirement Plan?

3 Ways to Save Early to Keep Living Out Your Dreams Post Retirement

Types of Annuity Plan | Annuity Definition - Meaning & Key Benefits

Do Pension Plans Allow Any Death Benefits?

Pension Funds In India – Meaning, Overview, How Do Pension Funds Work, Types, Pension Plan Features and Tax Benefits

Understanding Annuity Plans

Benefits of Early Retirement Planning in India

Demystifying Retirement Financial Planning

What is an Annuity Plan, and How Does Annuity Plan Work?

15 Passive Income Ideas for Seniors to Boost Retirement Income

Which are the Best Investment Plans for Indian Senior Citizens in 2022?

Why is it Good to Have a Retirement Plan Before Your Marriage?

4 Tips to Avoid Running Out of Money in Retirement

Inflation: A Key Factor to Consider into Retirement Planning

Gift Your Parents a Sound Retirement Plan

NPS for Housewife

Is it possible to live a financially independent life, even after you retire?

Top Investment Options for Retirement Planning

Why Should Retirement Planning Be on Top of Your Priority List?

7 Best Guaranteed Income Plans 2023 in India Their Eligibility, Features & Benefits

Here's Retirement Planning Guide for Working Men & Women

Changing Jobs? Reinvest Your Retirement Funds

Different Types of Retirement Schemes

Tips to invest your voluntary retirement scheme money

ELSS vs ULIP: Which is a Better Investment?

Here's are Advantages of Pension Schemes and Retirement Plans

How to Save for Retirement With Retirement Investment Plans?

What are the Benefits of ULIP - Explained

What are the 4 Financial Phases of Retirement? How to Budget For Each One?

Benefits of Annuity Plan Investment

How Much Corpus Does One Need for Retirement?

How to Win at Retirement Savings?

6 investment options for the retired

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

14 Tips to Ensure Successful Retirement Planning

Retirement and Pension Plans in India- What are Your Options?

Types of Retirement Plans

What is the Difference Between EPF, VPF, and PPF? What are Their Tax Benefits?

How to Register An EPF Grievance Online

How To Choose The Right Pension Plan?

What Are Superannuation Benefits?

What Is A 401(k) Retirement Plan?: A Beginner's Guide

How Do Annuity Options Work In NPS

What is a Retirement Plan - What are its Features?

A Quick Guide to Retirement Plans

What Are Mortality Charges In ULIP?

How Does ULIP Work in India?

Reasons you should Buy a Retirement & Pension Plan

Turbocharge Your Retirement Savings with Annuities: Unlock Greater Returns

Benefits of Early Retirement Planning

What is a Defined Benefit Plan and How it Works?

The Rise of ESG Investing in Retirement Planning

What are the Charges Levied on ULIP?

7 Secrets that can Make Your Post-Retirement Phase Prosperous

What is the Minimum Lock-in Period for ULIP?

What Retirement Would Look Like 30 Years From Now

5 Best Investment Options for Senior Citizens in India

Long-Term Investing: Boost Retirement Income with an Income Booster

How to Calculate Your Retirement Corpus?

What are the Instruments Available for Building a Retirement Corpus?

Importance of financial Planning for Retirement

How To Check EPF Claim Status- The Complete Process

Ten Signs That You're Ready to Retire

The Significance of Number 8,000 in Retirement Planning

Retirement Planning Guide: These 5 Steps Will Help You Towards a Safe, Secure and Fun Retirement

Retiring soon? Here’s why buying annuity plans may make sense

Right Age for Retirement Planning and How to Go About It

What Are Retirement Pension Plans?

Mastering the 30:30:30:10 Rule: A Guide to Effective Retirement Planning

Top 3 Reasons Why You Should Start Retirement Planning Early

Retirement planning with a systematic life insurance plan

Annuity Plan | How to Choose the Right Annuity Plan | Kotak Life

Mistakes You Must Avoid While Planning Retirement

What tax benefits are there on saving for retirement?

Retirement Planning for Millennials

Terminologies You Should Understand About Retirement Plans

Types of Pension Plans for Your Retirement

Meaning of Sum Assured in a ULIP

Retirement Planning: Use our Retirement Calculator to Plan Ahead

Types of Pension Plans and Their Tax Benefits

How Can NPS Help You Save Tax?

Embracing the FIRE Movement: Financial Independence and Early Retirement

Which Pension Plan Suits You best?

6 Signs That You Are Not Financially Ready For An Early Retirement

Which Is Better: ULIP or SIP?

Here's Benefits of Post Retirement Investment Options

How to Maximize Your Retirement Savings with a Pension Scheme in India

Is ULIP Better Than FD?

Early Retirement Planning Tips

Getting Close to Retirement? Six Key Retirement Planning Tips That Can Help You Retire