Demystifying the Retirement Planning Process
Close
Close

Buy a life insurance plan in a few clicks

Now you can buy life insurance plans completely online right here.

  • Icon for Kotak Preferred e-Term Plan

    Kotak e-Term Plan

    Kotak e-Term Plan is a pure term plan that provides a high level of protection to your loved ones in your absence.

  • Kotak E-Invest Plan

    Kotak e-Invest is a comprehensive Unit Linked Life Insurance Plan that can be customized as per your goals and needs - be it protection; investment; financial security for child or retirement planning.

  • Icon for Kotak Guaranteed Savings Plan

    Kotak Guaranteed Savings Plan

    Kotak Guaranteed Savings Plan is a savings and protection plan that helps you achieve long-term financial goals and insurance cover against any eventuality.

  • Icon for Kotak Preferred e-Term Plan

    Kotak Lifetime Income Plan

    Kotak Lifetime Income Plan gives you the assurance of your income continuing throughout your life and in your absence throughout the lifetime of your spouse!

  • Icon for Kotak Preferred e-Term Plan

    Kotak Health Shield

    The Kotak Health Shield Plan helps secure your finances in times of sudden medical expenses related to illness such as Cardiac, Liver, Neuro and Cancer (all early and major stages of illness /conditions of Cancer); along with offering protection for Personal Accident - in case of accidental death or disability.

Close

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.

Back

Demystifying the Retirement Planning Process

View Plans
  • 10th Oct 2021
  • 457

Demystifying the Retirement Planning Process

The life of most people follows a basic chronology that comprises childhood, student life, working life, and finally, the retired life.

The retired life has some distinctive features that set it apart from other phases-

  • Once commenced, it never ends.
  • People get the maximum time to plan for this phase.
  • Despite knowing its importance, many people wait too long to begin the process of retirement planning.

The most common cause of delaying retirement planning is not knowing how to start and the factors to consider while drawing out the plan. However, the whole process can be simplified in few easy steps.

Step 1. Decide the Retirement Type

To begin with, make up your mind about the time of your retirement. Your retirement planning will largely depend upon whether you want a regular retirement or an early retirement.

While you will get enough time to plan and save for regular retirement, you may need to be more aggressive on your investment options if you want to retire early.

Step 2. Begin Early

Starting early gives you the leverage of time. Apart from gaining the benefits of compounding, you will be free to take more risks and afford to rectify some inadvertent investment mistakes.

Delaying your retirement planning will not only cost you losing out on these benefits but also put unnecessary strain on your personal finances when starting out late.

Step 3. Build Retirement Corpus: Freeze on a Number

When it comes to retirement planning, be definite about your goals. Think practically and arrive at an amount of money that you think will be enough to sustain your lifestyle post-retirement. Once done, you will have a target to achieve that can help you in taking decisive steps toward actively building a retirement corpus.

Step 4. Consider Inflation

Inflation is one of the biggest causes of wealth erosion and a silent destroyer of wealth. Try to have an idea about the impact of inflation on your wealth at the time of your retirement and how much would you need to brace for this impact.

Step 5. Post-Retirement Goals

Everyone has a different picture of life after retirement. For instance, your retirement planning will vastly differ depending on whether you want to open a business post-retirement or just happily read a novel.

Access your goals carefully to have an idea of how much savings will help you in attaining your goals.

Step 6. Arrange an Income Source

The dwindling bank interests can no longer guarantee a stable income for a retired person. Therefore, try to have a stable income source post-retirement.
You may consider a reputed pension plan to achieve this purpose. Check our pension plans to get an idea about the amount of pension you can get regularly after you retire.

Embark Upon Your Journey

An old Chinese proverb says, ” The journey of a thousand miles begins with a single step.” The same can hold true for retirement planning as well. The whole process might seem overwhelming at first sight, but it gets simpler once you begin. So, start your journey toward a happy and peaceful retirement with a firm planning process in action.


- A Consumer Education Initiative series by Kotak Life

Also read

    • 10th Oct 2021
    • 323

    Top 6 Flexible Benefits That ULIPs Offer

    Here are the top 6 benefits offered by Unit Linked Insurance Plan (ULIP) for a safe and financially secure retirement. Start boosting your retirement ...

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

    The interest rate for EPF is 8.75% per annum, VPF is 8.75% per annum and PPF is 8.7% per annum. Here's more on how EPF, VPF and PPF differ from one an...

    Read more
    • 27th Aug 2021
    • 719

    What is a Retirement Plan - What are its Features?

    A retirement plan or pension plan is designed to fulfil the post-retirement needs of an individual. Read more about what is a retirement plan & its fe...

    Read more

Related Plans

  • Kotak Assured Return Employee Benefit Plan

    Kotak Assured Return Employee Benefit Plan

    Kotak Assured Return Employee Benefit Plan is an insurance plan designed for Employers /Trusts, Employer – Employee groups who wants experts to mana...

    Know more