The Significance of Number 8,000 in Retirement Planning
Close

Buy a Life Insurance Plan in a few clicks

Close

Now you can buy life insurance plan online.

  • Icon for Kotak Preferred e-Term Plan

    Kotak e-Term Plan

    Kotak e-Term Plan provides a high level of protection to your loved ones in your absence.

  • Kotak E-Invest Plan

    Kotak e-Invest plan is a complete Unit-Linked Insurance Plan that can be customized as per your goals and needs.

  • 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 provides an insurance cover against any eventuality.

  • Icon for Kotak Preferred e-Term Plan

    Kotak Lifetime Income Plan

    Kotak Lifetime Income Plan gives you the security of your income continuing thru your life and in your absence throughout your spouse's lifetime!

  • Icon for Kotak Preferred e-Term Plan

    Kotak Health Shield

    Kotak Health Shield Plan helps secure your finances in sudden medical expenses such as Cardiac, Liver, Neuro, and Cancer (all early and significant illness stages/conditions of cancer), along with offering protection for personal accidents - 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

The Significance of Number 8,000 in Retirement Planning

View Plans
  • 30th Nov 2021
  • 254

The Significance of Number 8,000 in Retirement Planning

Summary

Most people think of retirement as a short period before the end of an eventful life. But think practically, and you’ll realize that retirement is not as brief as we generally believe. Read this post for an innovative take on retirement planning.

Content

If you were asked to visualize your retirement years, you might imagine vacationing, indulging in new hobbies, and spending fun filled days with your grandkids. But is this all there is to retirement?

Traditionally, retirement is thought of as a short period before the end of an eventful life. People think of it as a brief chapter of life where they could relax and enjoy everything they could not during their work life. This belief guides their retirement planning as well.

However, this conventional view needs to change and change fast to keep up with the changing times. Here is a modern approach to retirement planning-

Retirement Is NOT as Brief as People Imagine

If we consider the average life expectancy to be 80-90 years, we can divide it into four segments of 20-22 years. Convert this into days, and we have four segments of around 8,000 days each. Retirement generally begins around 60 years and lasts till the end.

In other words, your retirement years will make up for at least one-fourth or 25% of your life. By no means, 25% of the total life can be considered a short period.

Planning for 8,000 Days

When you start saving and investing for your retirement, don’t think of it as something that will only last a few years as it can be as long as 20-25 years or even more.

Unlike segments between 0-20, 21-40, and 41-60 years, where most things are already mapped out by traditions and society, the guideposts are often fewer in the retirement years. And with the rising inflation and life expectancy, one needs to be very meticulous and practical about retirement planning to ensure that they are actually able to live the retirement of their dreams.

How to Plan Your Retirement?

If you are currently working and want to save and invest for your retirement, understand that you are working towards a period that could easily last 8,000 days or more. With this in mind, here are a few tips to help you plan your retirement-

  • Start Early
  • When it comes to investing, time is the key. It is always better to start investing towards your retirement when you are in your 20s and 30s. In the longer run, a difference of even a few years could have a significant impact on your retirement corpus.

  • Calculate the Retirement Corpus
  • You can start with calculating your current annual expense and then multiply it by 20-25 (as retirement could be this long) to reach your retirement corpus. Make sure that you also consider inflation for this calculation.

  • Choose the Right Investment Options
  • There are now many different investment options available in India. But if your goal is retirement planning, something like a pension plan is highly recommended. With these plans, you can pay a fixed premium throughout your working life and receive a steady income for lifetime after retirement.

Planning for the Second Innings of Life

While planning your retirement, it is essential to ensure that your wealth span is as long as your lifespan. Rather than assuming that your retirement years would only last 5-10 years, think practically as it could be as long as 8,000 days or even more.

Start investing towards your retirement from an early age and invest in smart products such as annuity or pension plans so that you can enjoy your retirement years just as you’ve always imagined.

- A Consumer Education Initiative series by Kotak Life

Also read

    • 27th Aug 2021
    • 408

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

    It is essential to begin your retirement planning as you start earning to ensure no financial worries later on. Let's discuss 10 ways to calculate you...

    Read more
    • 26th Nov 2021
    • 267

    How To Choose The Right Pension Plan?

    A pension plan is a smart way to receive a steady income for covering your post-retirement expenses. Read more to know how to choose the best pension ...

    Read more
    • 14th Dec 2021
    • 362

    Are Annuities Great For Early Retirement?

    Annuity plans are insurance products that provide guaranteed regular income after retirement to the insured. Read more about What is better than...

    Read more

Related Plans

  • Kotak Ace Investment

    Kotak Ace Investment

    Kotak Ace Investment Plan is designed with the clear objective of helping you accumulate wealth and provide you adequate life cover.

    Know more