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.

Benefits of Early Retirement Planning

Early retirement planning helps in unforeseen medical emergencies, supporting dependents, saving for rainy days, and also it has the advantage of compounding and tax benefits.

  • Dec 18, 2018

The early bird catches the worm. When we are talking about investments, this saying hits home. It is simple: the earlier you invest, the more time you have to stay invested, the higher the probability of maximizing your returns. However, most people in their early twenties do not even think about retirement. It is important to take your retirement planning into your own hands and start as early as you can.

Following is why you need to start early retirement planning.

Unforeseen medical emergencies

As you grow older, your health becomes more fragile and you are more prone to falling sick. Medical expenses are steep and they can burn a hole in your savings. Diseases or ailments do not strike with a warning and, therefore, it is better to start building a corpus for the same from the time you are young and healthy. By doing this, eventually, you need not depend on someone else to pay for your health bills.

Saving for a rainy day

The popular folk tale of the ant and the grasshopper teaches us the importance of saving for a rainy day, early on in life. Life is unpredictable. It can throw a curve ball at you at any point in time and you need to be prepared. A secure retirement corpus or nest egg can help you move smoothly through all stages of life without having to worry too much about the future. Do you know you can also pledge your retirement fund for a short-term loan in case you are faced with a sudden emergency and need funds immediately? Early retirement planning is, therefore, useful in many instances.

The advantage of the power of compounding

If you start early, you give more time to your money to compound. By starting early, you can regularly put aside a small sum of money and still generate a good corpus over time compared to someone who starts much later, even if they end up investing more money.

Supporting dependents

If you are the only breadwinner in your family, you have every reason to start saving as soon as possible. Over the span of your career, you would want to accumulate as much wealth as possible so that both you and your family can live a good life without monetary issues. However, what happens to them in case something unfortunate happens to you? The future is uncertain and you can secure their future with the help of life insurance-based pension or a solid early retirement plan.

The tax benefit

You can avail tax benefits of retirement plans . One of the major advantages is that they reduce the amount of income tax you will otherwise have to pay to the government during retirement. You can also ensure that your beneficiaries to the retirement corpus pay reduced tax. You can opt for tax diversification as well. This means you can diversify your money into tax-deferred, tax-free and taxable accounts. By doing this, you can withdraw your retirement corpus strategically from all three accounts, depending on the future circumstances.

These days, people are also looking at early retirement. They do not want to work until the official retirement age (as set by the government). If you are keen on an early retirement, it is vital you need to start planning for it as soon as possible.

The future is unpredictable. You never know what can go wrong and when. While you cannot always predict what may go wrong, you can always prepare in advance for you and your family to cope with unfavorable conditions. By investing time and effort in early retirement planning, you can ensure that you are financially well prepared and mentally at peace in your golden years.

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

How Do Annuity Options Work In NPS

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

How Much Corpus Does One Need for Retirement?

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

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

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

Early Retirement Planning Tips

What are the Charges Levied on ULIP?

Retirement Planning at 50? You Are Still Good to Go

How to Calculate Your Retirement Corpus?

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

Changing Jobs? Reinvest Your Retirement Funds

How Does NPS Work?

Which Pension Plan Suits You best?

Retirement Planning: Use our Retirement Calculator to Plan Ahead

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

Benefits of Early Retirement Planning in India

Top 3 Reasons Why You Should Start Retirement Planning Early

Importance of financial Planning for Retirement

Types of Retirement Plans

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

ELSS vs ULIP: Which is a Better Investment?

Top Investment Options for Retirement Planning

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

Guide to Long Term Investment

Meaning of Sum Assured in a ULIP

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

What is the Minimum Lock-in Period for ULIP?

How To Check EPF Claim Status- The Complete Process

Is an Annuity a Good Investment Option?

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

Types of Pension Plans and Their Tax Benefits

What are the Rules for Exit From NPS?

NPS for Housewife

Tips to invest your voluntary retirement scheme money

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

How To Choose The Right Pension Plan?

Ten Signs That You're Ready to Retire

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

Embracing the FIRE Movement: Financial Independence and Early Retirement

Understanding Annuity Plans

Which Is Better: ULIP or SIP?

Retirement planning with a systematic life insurance plan

How should one decide on fund allocation within NPS?

Important Questions To Ask Yourself Before Choosing A Good Retirement Plan

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

How Has NPS Performed in Comparison with Other Instruments?

How to Protect Your Retirement Account from Hackers

What are the Instruments Available for Building a Retirement Corpus?

What are the Differences Between ELSS ULIP and Mutual Funds?

How Can NPS Help You Save Tax?

The Significance of Number 8,000 in Retirement Planning

7 Secrets that can Make Your Post-Retirement Phase Prosperous

Is ULIP Better Than FD?

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

How Does ULIP Work in India?

5 Best Investment Options for Senior Citizens in India

15 Passive Income Ideas for Seniors to Boost Retirement Income

What tax benefits are there on saving for retirement?

Managing Your Money After You Retire

What Are Superannuation Benefits?

Retirement: A New Start to Life!

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

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

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

Know the Pros and Cons of Retirement Annuities

Plan Your Retirement in India - Retirement Calculator

A Quick Guide to Retirement Plans

Types of Pension Plans for Your Retirement

4 Tips to Avoid Running Out of Money in Retirement

Turbocharge Your Retirement Savings with Annuities: Unlock Greater Returns

Importance of Retirement Planning

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

What is a Retirement Plan - What are its Features?

6 investment options for the retired

Demystifying Retirement Financial Planning

How to Win at Retirement Savings?

How to Save for Retirement With Retirement Investment Plans?

Do Pension Plans Allow Any Death Benefits?

What is a Defined Benefit Plan and How it Works?

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

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

Right Age for Retirement Planning and How to Go About It

Gift Your Parents a Sound Retirement Plan

What Retirement Would Look Like 30 Years From Now

Here's Benefits of Post Retirement Investment Options

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

Reasons you should Buy a Retirement & Pension Plan

The Rise of ESG Investing in Retirement Planning

How to Register An EPF Grievance Online

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

Mistakes You Must Avoid While Planning Retirement

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

Retirement Planning for Millennials

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

What Are Retirement Pension Plans?

Turbocharge Your Retirement Savings with Annuities: Unlock Greater Returns

Here's Retirement Planning Guide for Working Men & Women

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

What Are Mortality Charges In ULIP?

Here's are Advantages of Pension Schemes and Retirement Plans

What are the Benefits of ULIP - Explained

Inflation: A Key Factor to Consider into Retirement Planning

Terminologies You Should Understand About Retirement Plans

Benefits of Annuity Plan Investment

Different Types of Retirement Schemes

14 Tips to Ensure Successful Retirement Planning