What Are The Benefits of Retirement Planning for Millenials
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

Kotak Health Shield

Insurance against medical expenses related to heart, brain, liver and Cancer. Know more

Retirement Planning for Millennials

Retirement Planning for Millennials
  • 10th Mar 2021 |
  • 7,122

The world that we know today is changing rapidly with globalisation, innovation and advancements in science and technology. It is a high time now that India’s millennials realise the evolving scenario of finance in the country and appreciate the importance of saving early for a better life after their retirement.

Who are Millennials?

Any individual born between the year 1981 and 1996 (currently aged between 24 to 39 as of 2020) is considered a millennial.

Millennials are known to be confident and ambitious. However, they are keener on enjoying the good things of life (travelling, eating out, entertainment) and do not consider planning for retirement important at a young age.

Why is Retirement Planning Important for You?

As a millennial, right now you might be inspired by successful founders of startups like PayTM, Zomato, Flipkart, etc. and dream of starting your venture at some point in time.

Let us assume, after deducting hefty amounts for urban living such as house rent, car EMI and children’s education, you manage to save ₹1 lakh every month. Assuming you have managed to save ₹20 lakhs aside for financial safety of yourself and your family in future. With modest inflation of 6%, ₹20 lakhs after 10 years would be equivalent to ₹11 lakhs. After 20 years, it would get even worse, equivalent to only ₹6 lakhs.

₹6 lakhs is not a sufficient amount to even buy a new car, let alone support you once your monthly earnings stop.

On the other hand, if you start saving for your retirement, say from the age of 30, you will steadily build a substantial retirement corpus by the time you turn 60. Hence, a robust retirement planning is important for you, even if you are a millennial.

View Plans

Benefits of Early Retirement Planning

1. Medical emergencies: As we grow older, our health becomes more fragile, and we are more prone to fall sick. Medical expenses may rise, and hence it would be best to start building a corpus from the time you are young and healthy.

2. Saving for a rainy day: We must save for a rainy day early in life. Life is unpredictable and can turn upside down without warning. A secure retirement corpus can enable you to sail through all hardships of life smoothly.

3. Power of compounding: When you start saving early, you give your money more time to compound. Regularly putting aside a small sum of money will generate a good corpus over a period of time.

4. Supporting Dependents: If you are the sole breadwinner of your family, it is even more important for you to start saving early to accumulate enough wealth for you and your family to lead a hassle-free life, even when your regular income stops.

5. Tax Benefits: You can avail tax benefits on retirement plans. The premiums paid towards retirement plans are tax-deductible under the Indian Income Tax Act. However, make sure to assess the prevailing tax guidelines to determine the exact tax benefits on your retirement investment.

Stay Insured with Kotak Retirement Plans

With Kotak Life, you can opt for Kotak Premier Pension Plan, which enables you to gather enough wealth for your retirement while earning sufficiently and offer assured benefits on death. You can also choose Kotak Lifetime Income Plan, which would enable you to lead a financially independent life post-retirement with a wide range of income options suiting your retirement needs.

Conclusion

A good retirement planning guide can assist you in making better retirement decisions. No company has a “work forever” scheme that would last up to old age. Having a retirement plan will help you with a regular income in retirement years, which will allow you to live your millennial lifestyle without any compromises.

Kotak e-Invest

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

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

Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

How Does NPS Work?

NPS for Housewife

Why Should I Invest in ULIP?

A Quick Guide to Retirement Plans

What are the Benefits of ULIP - Explained

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

Importance of Retirement Planning

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

Un-Retirement - Are You Ready For It?

How Much Corpus Does One Need for Retirement?

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

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

What Are Superannuation Benefits?

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

What are ULIPs and their Types?

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

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

What Happens to ULIP Premiums Paid if the Market Crashes?

What is the difference between Life Insurance and ULIP?

What is Fund Value in ULIP?

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

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

Why ULIP Should Be a Part of Your Investment Portfolio?

Advantages of Pension Schemes and Retirement Plans

Which Is Better: ULIP or SIP?

Why Should You Invest in NPS?

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

How to Win at Retirement Savings?

How Is ULIP Different from Other Life Insurance Plans? Where Can I Invest - ELSS, ULIP, or PPF?

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

At What Age Should You Start Your Retirement Planning?

What are the Advantages and Disadvantages of ULIP?

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

Demystifying the Retirement Planning Process

5 Notable Investment Options for Retirees

Do ULIPs Give Good Returns On Investments?

Why Are ULIPs Called Flexible Investments?

What is Partial Withdrawal in ULIPs?

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

Can I Surrender My ULIP Policy after 2 Years?

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

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

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

How has ULIP Grown Over the Last 3 years?

How Has NPS Performed in Comparison with Other Instruments?

Why are ULIPs One of the Best Tax Saving Instruments?

Know Why You Should Stay Invested in Your ULIP Plan

How Can I Achieve My Wealth Goal with ULIP Investment?

How To Make Most of Your Money After Retirement?

How should one decide on fund allocation within NPS?

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?

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

Retirement: A New Start to Life!

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

Benefits of Early Retirement Plans

8 Charges in ULIP That You Must Know

ULIP Plan or Traditional Insurance Plans - Which is better?

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

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

Meaning of Sum Assured in a ULIP

What is a Retirement Plan - What are its Features?

Top 6 Flexible Benefits That ULIPs Offer

Saving for approaching retirement with retirement insurance

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

Are Annuities Great For Early Retirement?

How To Choose The Right Pension Plan?

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

What are the Differences Between ELSS ULIP and Mutual Funds?

How To Keep Your Retirement Accounts from Being Hacked?

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

How Safe is it to Invest in ULIP plans?

Types of Retirement Plans

Best Insurance Plans for a Guaranteed Monthly Income After Retirement!

Top 4 Mistakes To Avoid While Planning For Your Retirement

Save Early to Keep Living Your Dreams Post Retirement

Top 4 Myths About ULIP Investments You Should Know

What are the Rules for Exit From NPS?

What are the things to consider before buying ULIPs?

Top 6 Reasons Why You Should Get A Pension Plan

What tax benefits are there on saving for retirement?

What Are Mortality Charges In ULIP?

Calculating a Retirement Corpus that can Support Your Lifestyle

Is ULIP a Good Option for People Above 60?

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

FAQs on Taxation of ULIPs

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

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

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

Types of Pension Plans for Your Retirement

Inflation: A Key Factor to Consider into Retirement Planning

Importance of financial Planning for Retirement

Here's Why it's a Good Time to Explore ULIPs as an Investment

Retirement planning with a systematic life insurance plan

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

Pros and Cons of Retirement Annuities

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

How Does Pension Plans in India Works?

A Beginner's Guide to Understanding 401k Retirement Plan

Which Pension Plan Suits You best?

Invest for your second innings with a guaranteed savings plan

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

The Significance of Number 8,000 in Retirement Planning

Is the ULIP Policy Surrender Value Taxable?

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

How can NPS help you save tax?

Retirement Planning at 50? You Are Still Good to Go

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

5 Steps to Gift a Smart Retirement Plan to Your Parents

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

Different Types of ULIP Investments in India

What are the Charges Levied on ULIP?

यूलिप के 8 शुल्क

How Does ULIP Work in India?

5 Reasons to Buy ULIP for a Secured Financial Future

What are the Uses of ULIP?

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

5 Common ULIP Myths That You Should Stop Believing

Ten Signs That You're Ready to Retire

How Do Annuity Options Work In NPS

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

How to Choose the Best ULIP Plans to Invest in 2022?

Is ULIP Better Than FD?

Top Investment Options for Retirement Planning

What is Lock-In Period in ULIPs?

Different Types of Retirement Schemes

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

Which are the Best ULIP Plans in India for Children?

7 Secrets that can Make Your Post-Retirement Phase Prosperous

Terminologies You Should Understand About Retirement Plans

Benefits of Early Retirement Planning in India

Important Questions To Ask Yourself Before Choosing A Good Retirement Plan

Is ULIP a Complex Financial Product?

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

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

What is ULIP and Its Benefits?

ELSS vs ULIP: Which is a Better Investment?

Can NRIs Invest in ULIP Plans Offered in India?

What is the Minimum Lock-in Period for ULIP?

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

Benefits Of Retirement & How Investments Can Help You Enjoy Them

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

Do Pension Plans Allow any Death Benefits?

Is ULIP A Good Investment Option?

Tips to invest your voluntary retirement scheme money

यूलिप के फायदे (Benefits of ULIP in Hindi)

Give Your Retirement Savings A Booster-Shot with Annuities

Is It Worth Buying ULIP Plans For 10 Years?

Understanding Annuity Plans

Why You Should Invest In An Annuity Plan?

Long Term Investment Guide for Your Retirement

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

What Are Retirement Pension Plans?

Retirement Planning Guide for Working Men and Women

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