Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term

Protect Your family’s financial future with Kotak e-Term. 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 insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Lifetime Income Plan

Retirement years are the golden years of life. Know more

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.

How Much Corpus Does One Need for Retirement?

Retirement is one of the most important element of a systematic financial planning. Know how much corpus do you require to achieve your post-work life for a cash rich retirement. 

  • Feb 21, 2022
  • 1,505 Views

Retirement planning is an important part of financial planning for everyone. Good financial planning, money choices, and investing in retirement plans can help you live a peaceful and worry-free retired life. However, the process can get a little intimidating and stressful at the beginning and all you have to do is be patient during the bad times.

The question, how much retirement corpus does one need for retirement, cannot be simply answered like yes or no. It is a much deeper question and the answer can be manifold to it. What you need to understand is the kind of retirement corpus you are looking at, your responsibilities, your lifestyle and so many other things. Just like a term plan, your retirement corpus would also depend on your requirements so make sure you have those listed first.

All things considered, this might become a little overwhelming for many, and therefore, we have put down a simple understanding of these aspects to assist you in effectively planning the same.

Annual Retirement Fund

  • Assuming you begin putting 9% of your salary towards your retirement at the age of 60, your corpus will be adequate enough to support you until you reach the age of 90.
  • Likewise, putting up 18.4% of your salary for retirement will allow you to quit at 55 and live well until you are 90.
  • By putting aside 34.1% of your salary for retirement, you’ll be able to retire early at the age of 50 with enough money to last until you’re 90.

4% Withdrawal Retirement Rule

It is critical to have a complete understanding of the aim, when making a long term financial investment. Investors who take inflation into account while planning for retirement find it much easier to fulfil their financial goals. As per tax and investment gurus, the easiest route to determine post-retirement funding requirements is to make a list of monthly expenses and compute the amount at the current rate. Then, using 7% inflation, compute the present total growing at 7% for the period in which they will be retiring. According to tax experts, the 4% withdrawal rule applies to the net amount required at the time of retirement.

Retirement Calculator

A retirement calculator may be useful if you’re still having problems settling on a corpus for your retirement savings. An online retirement calculator demands precise information regarding current age, desired retirement age, life expectancy, etc., to predict the costs and the length of investments. Monthly costs including energy bills, housing rent, driver/maid/cook wages, maintenance, petrol, leisure, medications, marital and family status, city, area of residence, and any information on current investments are also required by the calculator. It predicts the rise and fall in these costs in the future with a roughly estimated retirement fund amount.

To summarise, the anticipated retirement corpus or savings you will require for a pleasant and serene retired life is highly dependent on your present employment, lifestyle, and future retirement goals. Therefore, careful planning, utilization of available tools, and proper research are crucial to come up with a figure that best fits your needs!

In this policy, the investment risk in the investment portfolio is borne by the policyholder.

Kotak e-Invest

Download Brochure

Features

  • Return of Mortality Charges*$
  • Enhanced Protection
  • Multiple Plan Options
  • Zero Premium Allocation Charges
  • Tax Savings^

Ref. No. KLI/22-23/E-BB/521

T&C

- A Consumer Education Initiative series by Kotak Life

Similar Articles

Saving for approaching retirement with retirement insurance

What are the Benefits of ULIP - Explained

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

What To Do With Your Retirement Accounts During An Employment Lapse?

What is a Retirement Plan - What are its Features?

Give Your Retirement Savings A Booster-Shot with Annuities

Why ULIP Should Be a Part of Your Investment Portfolio?

5 Notable Investment Options for Retirees

How To Choose The Right Pension Plan?

Save Early to Keep Living Your Dreams Post Retirement

How Quickly is Fund Switch Effected in ULIPs? Is it Done the Same Day or After a Particular Number of Days?

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

What Happens to ULIP Premiums Paid if the Market Crashes?

7 Secrets that can Make Your Post-Retirement Phase Prosperous

Top 4 Myths About ULIP Investments You Should Know

A Quick Guide to Retirement Plans

FAQs on Taxation of ULIPs

What Are Mortality Charges In ULIP?

Importance of Retirement Planning

Types of Retirement Plans

Understanding Annuity Plans

Can NRIs Invest in ULIP Plans Offered in India?

Important Questions To Ask Yourself Before Choosing A Good Retirement Plan

What are the things to consider before buying ULIPs?

What are the Charges Levied on ULIP?

Different Types of Retirement Schemes

Do Pension Plans Allow any Death Benefits?

Looking for Ways to Earn Lifetime Income in Retirement? Here Are 6 of the Top Options

Pros and Cons of Retirement Annuities

Is ULIP a Complex Financial Product?

What is a Defined Benefit Plan and How it Works?

Best Insurance Plans for a Guaranteed Monthly Income After Retirement!

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

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

Advantages of Pension Schemes and Retirement Plans

Calculating a Retirement Corpus that can Support Your Lifestyle

Are Annuities Great For Early Retirement?

What Happens If I Stop Paying My ULIP Policy Premium After Paying the First Premium? Will I Still Get The Return?

Top 6 Reasons Why You Should Get A Pension Plan

Benefits of Early Retirement Plans

What is the Estimated Return Percentage on ULIP? Do Investors Get Compound Interest?

How Has NPS Performed in Comparison with Other Instruments?

Top 4 Mistakes To Avoid While Planning For Your Retirement

5 Steps to Gift a Smart Retirement Plan to Your Parents

Know Why You Should Stay Invested in Your ULIP Plan

Demystifying the Retirement Planning Process

EPF Grievance Management: All You Need to Know

Retirement planning with a systematic life insurance plan

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

How can NPS help you save tax?

What are the Chances of Losing all my Money in ULIP and How Much Return Should I Expect?

Is it Advisable to Withdraw the ULIP Insurance Policy After 5 Years?

Is It Worth Buying ULIP Plans For 10 Years?

Retirement Planning at 50? You Are Still Good to Go

Is it Suggestible to Take a ULIP Plan Linked with a Term Plan?

Is ULIP a Good Option for People Above 60?

How should one decide on fund allocation within NPS?

Retirement Planning - How To Calculate Your Retirement Premium in India?

How has ULIP Grown Over the Last 3 years?

Types of Pension Plans for Your Retirement

ULIP Plan or Traditional Insurance Plans - Which is better?

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

What is Premium Redirection in ULIPs Plans | ULIP Insurance Plans | Kotak Life Insurance

How Safe is it to Invest in ULIP plans?

What is Lock-In Period in ULIPs?

Retirement Planning: Use our Retirement Calculator to Plan Ahead

Why Should You start Retirement Planning as soon as you start a job?

ELSS vs ULIP: Which is a Better Investment?

यूलिप में 8 शुल्क जो आपको अवश्य जानना चाहिए

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

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

Meaning of Sum Assured in a ULIP

5 Reasons Why ULIP Plans are One of The Best Retirement Planning Instruments

Is ULIP A Good Investment Option?

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

The Significance of Number 8,000 in Retirement Planning

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

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

Why Should You Invest in NPS?

At What Age Should You Start Your Retirement Planning?

How to Win at Retirement Savings?

What are Fixed Maturity Plans and Why Should I Invest in Them?

Can I Surrender My ULIP Policy after 2 Years?

यूलिप और उनके प्रकार क्या हैं?

Who Gets the Benefit After the Maturity of ULIP: The Proposer or The Life Insured?

What are the Differences Between ELSS ULIP and Mutual Funds?

Are You Planning an Early Retirement? Here's Why Buying Annuity Plan Will Make Sense

Difference Between Unit-Linked Insurance Plans and Non-Linked Plans

Which Is Better: ULIP or SIP?

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

What is Partial Withdrawal in ULIPs?

Which Pension Plan Suits You best?

Different Types of ULIP Investments in India

Why You Should Invest In An Annuity Plan?

Top 6 Flexible Benefits That ULIPs Offer

How Does Pension Plans in India Works?

How Does ULIP Work in India?

How Can I Achieve My Wealth Goal with ULIP Investment?

Retirement Planning Guide for Working Men and Women

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

Top Investment Options for Retirement Planning

Retirement Planning for Millennials

What tax benefits are there on saving for retirement?

What is the Death Claim Payable in the Case of ULIP?

What are the Instruments Available for Building a Retirement Corpus?

How To Make Most of Your Money After Retirement?

What Are Retirement Pension Plans?

What are the Uses of ULIP?

ULIP: Can You Surrender ULIPs or Withdraw Money from It?

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

Tips to invest your voluntary retirement scheme money

NPS for Housewife

5 Reasons to Buy ULIP for a Secured Financial Future

5 Common ULIP Myths That You Should Stop Believing

A Beginner's Guide to Understanding 401k Retirement Plan

What is Fund Value in ULIP?

Is ULIP Better Than FD?

Importance of financial Planning for Retirement

How Does NPS Work?

Invest for your second innings with a guaranteed savings plan

Worried About Running Out of Money in Retirement? 4 Tips to Avoid This Crisis

Does Having Both ULIP Plan and Other Health Insurance Plan Make Sense?

Benefits of Early Retirement Planning in India

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

Long Term Investment Guide for Your Retirement

Do ULIPs Give Good Returns On Investments?

Single Premium ULIP or a PPF - Which One is Better?

How to Build a Tax-Free Pension Income for Retirement?

What are the minimum and maximum investment in ULIP? Would the Whole Amount Insured in The ULIP Insurance be Invested in the Market?

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

Here's What Retirement Would Look Like 30 Years From Now

Ten Signs That You're Ready to Retire

How Can ULIPs Help You Plan for Your Child's Future?

Inflation: A Key Factor to Consider into Retirement Planning

Retirement: A New Start to Life!

5 Retirement Planning Tips for a Financially Controlled Post-Employment Life

ULIP Tax Benefits: यहां निवेश करने पर मिलते हैं 5 बड़े फायदे

How Do Annuity Options Work In NPS

What Are Superannuation Benefits?

What are ULIPs and their Types?

Un-Retirement - Are You Ready For It?

What are the Rules for Exit From NPS?

What is the Minimum Lock-in Period for ULIP?

What is the difference between Life Insurance and ULIP?

Benefits Of Retirement & How Investments Can Help You Enjoy Them

How To Keep Your Retirement Accounts from Being Hacked?

Terminologies You Should Understand About Retirement Plans