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


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.

Terminologies You Should Understand About Retirement Plans

Many of you are unfamiliar with banking terminologies. Therefore, to help you out, here is a list of retirement planning terms to build some confidence and help you get started.

  • Feb 15, 2022

Retirement planning should be one of the most important parts of your financial goals to lead a safe and sturdy life with your loved ones in the future. You do not want to end up in a situation wherein you are having to look for options to fund your emergency requirements and needs. However, many of you do not know where to begin, and so, unfamiliar banking terminologies can seem a little intimidating. Therefore, to help you out, here is a list of retirement planning terms to build some confidence and help you get started.

Employee Provident Fund

The Employees’ Provident Funds and Miscellaneous Act, 1952, governs the primary system and functioning of the Employee Provident Fund, also commonly known as EPF. In this, both the employee and the employer contribute 12% of the employee’s base salary and dearness allowance to the fund. The current interest rate on EPF stands at 8.50% per annum.

Annuity Plans

An annuity plan is an agreement you enter into with a financial services company or an insurance company. The firm offers to give future income (typically with some earned interest amount) for a fixed number of years or for your entire life. Annuity plans are a great option for people who want to enjoy a consistent level of income when they no longer work. Fixed, variable, instant, and index annuities are some common examples of annuity plans. It is advisable to consult a financial advisor before making any decisions.

Defined Contribution Schemes

Defined contribution schemes are the ones where you invest a specific amount and the pension is calculated based on the fund returns and the amount you contribute. Products like EPF and National Pension Scheme (NPS) fall under this category. In NPS, you can invest till 60 years of age. There are various other variations available in NPS where you can go in detail but we would talk more about it in some other article.

Glossary on terminologies you should know and understand about retirement plans and pension schemes

Defined Benefit Schemes

Defined benefit plans are becoming increasingly rare as a consequence of the rising costs and the degree of risk employers assume when financing and monitoring investments. However, they are very common, sponsored by employers, and ensure guaranteed monthly payments to employees. There was a time when a share of your EPF was transferred to Employee Pension Scheme. It had a set formula and everything, but since September 1, 2014, EPS was discontinued for employees earning more than ₹15,000 a month.

Individual Retirement Account (IRA)

An IRA is a retirement-savings investment account wherein the IRS has imposed an annual contribution limit. These accounts take tax exemptions into consideration which means that they offer tax advantages based on the sort of IRA you pick. You can start drawing money from your IRA once you reach the age of 59 and a half. You will be risking additional tax penalties if you withdraw the money prior to this age.

Traditional IRA

Traditional IRAs are tax-deferred retirement plans, which implies that you contribute pre-tax earnings and don’t pay taxes on the money until it’s distributed. At the time of withdrawal, you are charged at your current marginal tax rate. Annual contribution restrictions apply to traditional IRAs, and you must start taking required minimum payments (RMDs) by the age of 72. The traditional account is also a type of IRA.

Now that you have some knowledge of what falls under retirement planning, you can go ahead and start your very own journey to lead a fulfilling life!

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

Kotak e-Invest

Download Brochure


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

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


- A Consumer Education Initiative series by Kotak Life

Similar Articles

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

Benefits of Early Retirement Planning in India

Invest for your second innings with a guaranteed savings plan

Is ULIP a Complex Financial Product?

5 Reasons to Buy ULIP for a Secured Financial Future

How To Choose The Right Pension Plan?

Importance of Retirement Planning

Retirement: A New Start to Life!

यूलिप में 8 शुल्क जो आपको अवश्य जानना चाहिए

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

Retirement Planning: Use our Retirement Calculator to Plan Ahead

What is Fund Value in ULIP?

Is It Worth Buying ULIP Plans For 10 Years?

A Quick Guide to Retirement Plans

Pros and Cons of Retirement Annuities

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

Top 6 Reasons Why You Should Get A Pension Plan

How Does Pension Plans in India Works?

Calculating a Retirement Corpus that can Support Your Lifestyle

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

Why Should You Invest in NPS?

Can NRIs Invest in ULIP Plans Offered in India?

What is Lock-In Period in ULIPs?

How Safe is it to Invest in ULIP plans?

EPF Grievance Management: All You Need to Know

What tax benefits are there on saving for retirement?

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

What is the difference between Life Insurance and ULIP?

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

Know Why You Should Stay Invested in Your ULIP Plan

Benefits of Early Retirement Plans

Is ULIP A Good Investment Option?

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

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

What is Partial Withdrawal in ULIPs?

Do ULIPs Give Good Returns On Investments?

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

5 Steps to Gift a Smart Retirement Plan to Your Parents

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

How has ULIP Grown Over the Last 3 years?

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

What are the things to consider before buying ULIPs?

Best Insurance Plans for a Guaranteed Monthly Income After Retirement!

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

How Much Corpus Does One Need 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?

Saving for approaching retirement with retirement insurance

How Can I Achieve My Wealth Goal with ULIP Investment?

Retirement Planning at 50? You Are Still Good to Go

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

Do Pension Plans Allow any Death Benefits?

How To Keep Your Retirement Accounts from Being Hacked?

Understanding Annuity Plans

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

How Does NPS Work?

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

5 Notable Investment Options for Retirees

ELSS vs ULIP: Which is a Better Investment?

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

Save Early to Keep Living Your Dreams Post Retirement

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

Tips to invest your voluntary retirement scheme money

How Do Annuity Options Work In NPS

FAQs on Taxation of ULIPs

NPS for Housewife

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

How to Win at Retirement Savings?

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

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

Why ULIP Should Be a Part of Your Investment Portfolio?

7 Secrets that can Make Your Post-Retirement Phase Prosperous

How should one decide on fund allocation within NPS?

Retirement Planning for Millennials

What are ULIPs and their Types?

Which Is Better: ULIP or SIP?

Is ULIP a Good Option for People Above 60?

What is a Defined Benefit Plan and How it Works?

Different Types of Retirement Schemes

Types of Pension Plans for Your Retirement

Retirement Planning Guide for Working Men and Women

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

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

What is the Minimum Lock-in Period for ULIP?

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

What are the Instruments Available for Building a Retirement Corpus?

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

Top 4 Myths About ULIP Investments You Should Know

How To Make Most of Your Money After Retirement?

Is ULIP Better Than FD?

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

Advantages of Pension Schemes and Retirement Plans

What Happens to ULIP Premiums Paid if the Market Crashes?

Which Pension Plan Suits You best?

Are Annuities Great For Early Retirement?

What are the Charges Levied on ULIP?

Can I Surrender My ULIP Policy after 2 Years?

Meaning of Sum Assured in a ULIP

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

Importance of financial Planning for Retirement

The Significance of Number 8,000 in Retirement Planning

Top Investment Options for Retirement Planning

Retirement planning with a systematic life insurance plan

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

What are the Rules for Exit From NPS?

Different Types of ULIP Investments in India

Give Your Retirement Savings A Booster-Shot with Annuities

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

What is a Retirement Plan - What are its Features?

Un-Retirement - Are You Ready For It?

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

A Beginner's Guide to Understanding 401k Retirement Plan

ULIP Plan or Traditional Insurance Plans - Which is better?

Top 6 Flexible Benefits That ULIPs Offer

Top 4 Mistakes To Avoid While Planning For Your Retirement

Benefits Of Retirement & How Investments Can Help You Enjoy Them

Ten Signs That You're Ready to Retire

Important Questions To Ask Yourself Before Choosing A Good Retirement Plan

What Are Mortality Charges In ULIP?

Why You Should Invest In An Annuity Plan?

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

यूलिप और उनके प्रकार क्या हैं?

Demystifying the Retirement Planning Process

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

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

Long Term Investment Guide for Your Retirement

What Are Superannuation Benefits?

How can NPS help you save tax?

How Has NPS Performed in Comparison with Other Instruments?

5 Common ULIP Myths That You Should Stop Believing

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

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

At What Age Should You Start Your Retirement Planning?

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

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

What are the Differences Between ELSS ULIP and Mutual Funds?

Types of Retirement Plans

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

How Does ULIP Work in India?

Inflation: A Key Factor to Consider into Retirement Planning

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

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

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

What Are Retirement Pension Plans?

What are the Uses of ULIP?

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

What are the Benefits of ULIP - Explained

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