Importance of Retirement Planning
Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term Plan

Protect Your family’s financial future with Kotak e-Term Plan. 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

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.

Importance of Retirement Planning

A structured retirement plan equips you to handle various factors such as surpluses, shortfalls and emergencies. Read the article to know more about importance of retirement planning.

  • Sep 12, 2022
  • 4,775 Views

Young minds are generally more occupied with the newness of adulthood, exciting career avenues, budding relationships, and more. Among the host of things they wish to explore, retirement planning is not at the top of their priority list. However, our fast-paced world is full of uncertainties, and it goes by so quickly, leaving us with little or no chances to revive. Therefore, realising the importance of retirement planning is advisable to enjoy those golden years.

To make this process easier and straightforward, it is essential to know what is retirement planning. Read on to find the answer to this question and a few others, like “what is the main purpose of retirement planning?”.

Importance

What is Retirement Planning?

Retirement planning is a process whereby a person obtains a roadmap of their personal and financial life, which will help them meet all their living expenses post-retirement. Outlining for retirement assures an added source of income and assists in handling and managing life aspirations, medical emergencies, and being financially self-sufficient. Also, it serves best to understand the importance of retirement planning and start making arrangements for your retirement from the early stages.

Why is Retirement Planning Important?

Now that you understand retirement planning’s meaning, you must have realised that engaging in secure retirement planning is crucial to staying financially secure. A structured retirement annuity plan equips you to handle various factors such as surpluses, shortfalls and emergencies. So ultimately, a thorough retirement plan will let you develop a comprehensive understanding of your life goals (the aims) and define the path (the tools) to achieve the same. Here’s why you should start preparing early on rather than when it’s too late.

Why retirement planning is important.

  • Fulfil Retirement Goals

Retirement takes you to a new phase of your life wherein you can genuinely make time for yourself and indulge in activities that you have not been able to pay attention to during your work life. These can include picking up on an old hobby, actively working on your kids’ future, working on a venture you have been planning for years, etc.

  • Emergency Ready

Nobody can account for what is going to happen tomorrow. In such situations, it is best to stay prepared ahead of time, and retirement plans allow you to do exactly that. In addition, investing in one will ensure that you do not have to depend on anybody else financially in case of a medical or general emergency. The emergency fund will take care of that.

  • Maintain the Standard of Living

We all follow a particular lifestyle, and with age, it gets deeply incorporated into our daily habits. The lifestyle we lead today is because of the income we receive every month. Investing in a retirement plan is necessary to ensure this same standard of living post-retirement. That will help you with a steady income every month even after retiring.

  • Beating Inflation

Inflation can be defined as the rise in the price of goods & services, iInflation is increasing daily, and the effect of inflation, which seems to be small in the short term, can be huge over a few years. This means that an individual will have to pay more for all expenses in the future. Thus, while performing vital retirement planning, you can consider this determinant and generate a sufficient retirement fund for your future to live a peaceful life.

  • Zero Burden on Family

After your retirement, you shouldn’t depend on anyone, especially your relatives. Having a firm plan in your position will ensure that you don’t become a financial responsibility for those close to you. You want to be in a place where you are able to help a family member’s financial condition, “If needed”, not to make things adversarial. If you’ve planned consciously and kept a healthy amount loaded for retirement, you may have a lovely gift to give your children by adding to their wedding plans or grandchildren for their studies, gifts, etc., when your time comes.

In addition to these, you get tax benefits, reduced costs on investment plans, no financial obstacles for the future, and in the end, a stress-free life. Yet, with all these benefits and more, you can’t deny the fact that this is indeed a terrific investment opportunity to give up on.

That’s right — start today!. Now that you have understood the importance of retirement planning, you can begin by refining your smart retirement plan today.

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

Top 4 Myths About ULIP Investments You Should Know

Top 6 Flexible Benefits That ULIPs Offer

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

Why Should You Invest in NPS?

यूलिप के 8 शुल्क

What is the Minimum Lock-in Period for ULIP?

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

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

How To Choose The Right Pension Plan?

Retirement Planning Guide for Working Men and Women

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

How Safe is it to Invest in ULIP plans?

Is It Worth Buying ULIP Plans For 10 Years?

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

Ten Signs That You're Ready to Retire

A Beginner's Guide to Understanding 401k Retirement Plan

Benefits of Early Retirement Plans

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

Importance of financial Planning for Retirement

Benefits of Early Retirement Planning in India

How Does ULIP Work in India?

Best Insurance Plans for a Guaranteed Monthly Income After Retirement!

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

Demystifying the Retirement Planning Process

How Does NPS Work?

What is Fund Value in ULIP?

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

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

Pros and Cons of Retirement Annuities

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

Why ULIP Should Be a Part of Your Investment Portfolio?

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

Understanding Annuity Plans

How Much Corpus Does One Need for Retirement?

What is ULIP and Its Benefits?

How can NPS help you save tax?

Is ULIP A Good Investment Option?

Are Annuities Great For Early Retirement?

What Are Superannuation Benefits?

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

What are the Charges Levied on ULIP?

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

Is ULIP a Complex Financial Product?

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

What is a Retirement Plan - What are its Features?

How Does Pension Plans in India Works?

Can NRIs Invest in ULIP Plans Offered in India?

What are the Uses of ULIP?

Know Why You Should Stay Invested in Your ULIP Plan

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

Is the ULIP Policy Surrender Value Taxable?

Advantages of Pension Schemes and Retirement Plans

Retirement Planning for Millennials

How To Keep Your Retirement Accounts from Being Hacked?

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

ELSS vs ULIP: Which is a Better Investment?

How Can I Achieve My Wealth Goal with ULIP Investment?

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

Top 4 Mistakes To Avoid While Planning For Your Retirement

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

Long Term Investment Guide for Your Retirement

What is Lock-In Period in ULIPs?

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

Benefits Of Retirement & How Investments Can Help You Enjoy Them

Tips to invest your voluntary retirement scheme money

What is NAV in ULIP, and How is it calculated?

Calculating a Retirement Corpus that can Support Your Lifestyle

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

Retirement Planning at 50? You Are Still Good to Go

What Are Retirement Pension Plans?

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

What Happens to ULIP Premiums Paid if the Market Crashes?

Different Types of ULIP Investments in India

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

Give Your Retirement Savings A Booster-Shot with Annuities

5 Steps to Gift a Smart Retirement Plan to Your Parents

7 Secrets that can Make Your Post-Retirement Phase Prosperous

Do ULIPs Give Good Returns On Investments?

Retirement: A New Start to Life!

8 Charges in ULIP That You Must Know

Which Is Better: ULIP or SIP?

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

यूलिप के फायदे (Benefits of ULIP in Hindi)

Invest for your second innings with a guaranteed savings plan

Types of Retirement Plans

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

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

What tax benefits are there on saving for retirement?

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

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

NPS for Housewife

5 Reasons to Buy ULIP for a Secured Financial Future

What are the Instruments Available for Building a Retirement Corpus?

Do Pension Plans Allow any Death Benefits?

Un-Retirement - Are You Ready For It?

What is a Defined Benefit Plan and How it Works?

Important Questions To Ask Yourself Before Choosing A Good Retirement Plan

Saving for approaching retirement with retirement insurance

The Significance of Number 8,000 in Retirement Planning

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

Top Investment Options for Retirement Planning

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

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

Terminologies You Should Understand About Retirement Plans

Why You Should Invest In An Annuity Plan?

Which Pension Plan Suits You best?

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

Different Types of Retirement Schemes

Can I Surrender My ULIP Policy after 2 Years?

What are the Maturity Benefits in a ULIP Plan: Fund Value Sum Assured or Only Fund Value?

Inflation: A Key Factor to Consider into Retirement Planning

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

What are the Benefits of ULIP - Explained

How has ULIP Grown Over the Last 3 years?

Save Early to Keep Living Your Dreams Post Retirement

At What Age Should You Start Your Retirement Planning?

What is Partial Withdrawal in ULIPs?

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

What are the Rules for Exit From NPS?

How Do Annuity Options Work In NPS

FAQs on Taxation of ULIPs

Is ULIP Better Than FD?

Types of Pension Plans for Your Retirement

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

A Quick Guide to Retirement Plans

What are the Differences Between ELSS ULIP and Mutual Funds?

5 Notable Investment Options for Retirees

How to Win at Retirement Savings?

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

5 Common ULIP Myths That You Should Stop Believing

Meaning of Sum Assured in a ULIP

How To Make Most of Your Money After Retirement?

Retirement planning with a systematic life insurance plan

How should one decide on fund allocation within NPS?

ULIP Plan or Traditional Insurance Plans - Which is better?

Is ULIP a Good Option for People Above 60?

What are ULIPs and their Types?

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

How Has NPS Performed in Comparison with Other Instruments?

What is the difference between Life Insurance and ULIP?

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

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

What Are Mortality Charges In ULIP?

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

What are the things to consider before buying ULIPs?

Top 6 Reasons Why You Should Get A Pension Plan

What are the Advantages and Disadvantages of ULIP?

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