Close
Close

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

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.

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

A long-term investment plan for retirement is essential to lead a financially independent life. By investing in income booster plans, you can substantially increase your retirement income.

  • Jun 22, 2023
  • 1,430 Views

Updated on: 22 June 2023

Retirement is a phase of life where you can relax and enjoy quality time with your family. It also provides opportunities to follow your dreams and pursue your passion. There are various schemes and plans which can help plan a smooth and financially sound future.

    Key Takeaways

  • By investing in a retirement saving plan, you do not have to worry about the effect of inflation on your money, unlike in regular savings in banks.
  • You can avail of tax benefits associated with investment plans.
  • In case you are the sole breadwinner, investment plans are helpful in taking care of the financial needs of dependents.
  • Start investing a fixed amount from your income regularly towards future financial goals.
  • Start financial planning early in life to reap maximum benefits.

Long-term investing is one of the ways through which you can plan your retirement with your current income. It demands a portion of the income regularly, which goes toward the retirement pool and can be redeemed with interest after a certain age. There are various ways through which you can start planning your investment, some of which are discussed in this blog.

Why Long-Term Investment Plan for Retirement is Important?

Future financial planning does not have any cons; it is a seed that provides sweet fruits when you need it the most. Retirement is one such stage where you have a limited income source, and have to rely on your savings and investments. To avoid financial concerns at that age, you must look for long-term investment strategies.

With a small amount invested regularly from a young age, you can accumulate a decent amount of wealth returns by the time you reach the age of retirement.

You can also avail of tax benefits attached to long-term investing plans. This not only strengthens you financially but also protects your dependents against any future uncertainties.

Did You Know?

According to United Nations Population Division, World’s life expectancy is expected to reach 75 years by 2050 from the current 65 years, which results in a sharp increase in the number of retirement years. Thus, inflation, along with life expectancy, makes retirement planning essential.

Invest Today to Enjoy Tomorrow- How to Boost Retirement Income?

To have a financially independent life after retirement, you must consider the right retirement income planning and investment options that can provide you with a stable income. Such investments can benefit you even more if you start investing as soon as you start earning. But don’t worry if you have not started planning yet; this section will provide you with retirement fund options that can be your continuous source of income after retirement.

National Pension Scheme

NPS is a government-based initiative to provide regular income after retirement, along with market-based returns. Under this scheme, your savings are pooled into a pension fund which is invested by PFRDA professionals in diversified portfolios comprising Government bonds, Corporate debentures, and shares. This combination of investments accumulates over the years and grows. Once you are retired, you can withdraw the amount you require and use it.

Retirement Income and Income Booster

A regular retirement income is important to continue living a similar lifestyle that you enjoyed while earning. With plans like income booster, you can plan your retirement in a better manner because of the following features, it offers:

  • You have the option to receive income at any time after the completion of 60 years.
  • You can get retirement income in the form of systematic withdrawals.
  • You can choose the percentage and the frequency of payment that is, yearly, half-yearly, quarterly, or monthly.
  • In case the fund value drops to 105% of the total premium, the retirement income terminates, but the policy still remains in force. You have the option to start the payout again after the fund grows beyond 105% of total premiums.

Senior Citizen Saving Scheme

As the name suggests, Senior Citizen Saving Scheme is specially designed for senior citizens to enjoy life post-retirement. It allows senior citizens to receive quarterly interest payments by opening a Senior Citizen Saving Scheme account with a minimum deposit of ₹1,000. It also offers a high-interest rate of 7.4% per quarter. The maturity period of the scheme is 5 years; however, individuals can extend it for 3 more years by following some documentation.

Unit Linked Insurance Plan (ULIP)

ULIP is a long-term investment option that provides dual benefits of insurance and investment. That means it offers guaranteed returns along with insurance protection. It is a financial solution linked to the market as one part of your investment goes towards insurance, and the other is invested in long-term schemes such as stocks, bonds, and mutual funds. Moreover, it has been observed that average returns in ULIP are high as compared to other investment products.

Retirement Saving Plan/Pension Plan

This is a type of investment under which you dedicate a part of your income to build up over a period of time, which then turns out to be a source of income at the time of retirement. You will receive a regular payment from your corpus to ensure your monthly expenses are met.

Therefore, in order to avoid any financial difficulty in the future, you must look for pension plans and various other retirement income planning options offered by banks and financial institutions.

Bottom line

With careful preparation and consistency in the investment, you get a secure and comfortable future. Earlier, there were fewer options available for investments which restricted the choice, but now you have various plans, including income booster plans which can help you get better returns over normal investment schemes. In addition, starting investments early in life will help you get the benefit of time for the investments to grow. It also reduces the risk involved with the Funds. So, start planning today to avoid any financial discomfort in the future.

Kotak Life Time Income Plan

Download Brochure

Features

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

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

T&C

- A Consumer Education Initiative series by Kotak Life

Similar Articles

Changing Jobs? Reinvest Your Retirement Funds

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

Important Questions To Ask Yourself Before Choosing A Good Retirement Plan

How To Check EPF Claim Status- The Complete Process

4 Tips to Avoid Running Out of Money in Retirement

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

Benefits of Early Retirement Planning in India

Early Retirement Planning Tips

How Does NPS Work?

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

Gift Your Parents a Sound Retirement Plan

Retirement Planning at 50? You Are Still Good to Go

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

How to Calculate Your Retirement Corpus?

Guide to Long Term Investment

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

A Quick Guide to Retirement Plans

What tax benefits are there on saving for retirement?

Terminologies You Should Understand About Retirement Plans

How Does ULIP Work in India?

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

What are the Charges Levied on ULIP?

How To Choose The Right Pension Plan?

6 investment options for the retired

What is the Minimum Lock-in Period for ULIP?

What are the Benefits of ULIP - Explained

What is a Defined Benefit Plan and How it Works?

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

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

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

Embracing the FIRE Movement: Financial Independence and Early Retirement

Is ULIP Better Than FD?

Reasons you should Buy a Retirement & Pension Plan

Ten Signs That You're Ready to Retire

Here's are Advantages of Pension Schemes and Retirement Plans

5 Best Investment Options for Senior Citizens in India

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

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

Top Investment Options for Retirement Planning

What are the Differences Between ELSS ULIP and Mutual Funds?

How to Protect Your Retirement Account from Hackers

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

Here's Benefits of Post Retirement Investment Options

What are the Rules for Exit From NPS?

How to Register An EPF Grievance Online

Retirement planning with a systematic life insurance plan

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

ELSS vs ULIP: Which is a Better Investment?

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

Importance of Retirement Planning

Retirement: A New Start to Life!

Benefits of Annuity Plan Investment

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

Different Types of Retirement Schemes

Managing Your Money After You Retire

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

Know the Pros and Cons of Retirement Annuities

How Can NPS Help You Save Tax?

How to Win at Retirement Savings?

What Are Superannuation Benefits?

The Significance of Number 8,000 in Retirement Planning

How should one decide on fund allocation within NPS?

Top 3 Reasons Why You Should Start Retirement Planning Early

Is an Annuity a Good Investment Option?

Do Pension Plans Allow Any Death Benefits?

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

How Do Annuity Options Work In NPS

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

Importance of financial Planning for Retirement

NPS for Housewife

Meaning of Sum Assured in a ULIP

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

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

How Has NPS Performed in Comparison with Other Instruments?

What Retirement Would Look Like 30 Years From Now

Tips to invest your voluntary retirement scheme money

Demystifying Retirement Financial Planning

Here's Retirement Planning Guide for Working Men & Women

14 Tips to Ensure Successful Retirement Planning

15 Passive Income Ideas for Seniors to Boost Retirement Income

The Rise of ESG Investing in Retirement Planning

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

Benefits of Early Retirement Planning

7 Secrets that can Make Your Post-Retirement Phase Prosperous

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

How Much Corpus Does One Need for Retirement?

Types of Retirement Plans

Mistakes You Must Avoid While Planning Retirement

Turbocharge Your Retirement Savings with Annuities: Unlock Greater Returns

Retirement Planning: Use our Retirement Calculator to Plan Ahead

Inflation: A Key Factor to Consider into Retirement Planning

Types of Pension Plans and Their Tax Benefits

Turbocharge Your Retirement Savings with Annuities: Unlock Greater Returns

Understanding Annuity Plans

What Are Retirement Pension Plans?

What is a Retirement Plan - What are its Features?

Right Age for Retirement Planning and How to Go About It

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

Types of Pension Plans for Your Retirement

Which Is Better: ULIP or SIP?

What are the Instruments Available for Building a Retirement Corpus?

Plan Your Retirement in India - Retirement Calculator

Retirement Planning for Millennials

What Are Mortality Charges In ULIP?

Which Pension Plan Suits You best?

How to Save for Retirement With Retirement Investment Plans?

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