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 plans completely online right here.

  • Icon for Kotak Preferred e-Term Plan

    Kotak e-Term Plan

    Kotak e-Term Plan is a pure term plan that provides a high level of protection to your loved ones in your absence.

  • Icon for Kotak Preferred e-Term Plan

    Kotak Health Shield

    The Kotak Health Shield Plan helps secure your finances in times of sudden medical expenses related to illness such as Cardiac, Liver, Neuro and Cancer (all early and major stages of illness /conditions of Cancer); along with offering protection for Personal Accident - in case of accidental death or disability.

  • Icon for Kotak Preferred e-Term Plan

    Kotak Lifetime Income Plan

    Kotak Lifetime Income Plan gives you the assurance of your income continuing throughout your life and in your absence throughout the lifetime of your spouse!

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

Retirement Planning for Millennials

View Plans
  • 10th Mar 2021
  • 1,252
Retirement Planning for Millennials

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.

- A Consumer Education Initiative series by Kotak Life

Tags

Also read

  • The Significance of Number 8,000 in Retirement Planning
    • 30th Nov 2021
    • 5

    The Significance of Number 8,000 in Retirement Planning

    If we think practically, you’ll realize that retirement is not as brief as we generally believe. Read this post for an innovative take on retirement...

    Read more
  • Benefits of Early Retirement Plans
    • 1st Oct 2021
    • 119

    Benefits of Early Retirement Plans

    Retirement planning at an early age helps you with financial independence and to pursue hobbies with ease. Read the article to know more about the ben...

    Read more

Related Plans

  • Kotak e-Term Plan - Online Term Insurance

    Kotak e-Term Plan - Online Term Insurance

    Kotak e-Term Plan is a pure term insurance plan that provides a holistic life protection at affordable prices. Find out the eligibility criteria, key ...

    Know more
  • Kotak Premier Life Plan

    Kotak Premier Life Plan

    Kotak Premier Life Plan is a limited premium paying participating whole life plan, where you can choose to receive bonus payouts even after premium pa...

    Know more
  • Kotak Premier Pension Plan

    Kotak Premier Pension Plan

    Kotak Premier Pension Plan helps you accumulate enough wealth for your retirement, while you are earning sufficiently and also offers assured benefits...

    Know more
  • Kotak Wealth Optima Plan

    Kotak Wealth Optima Plan

    Kotak Wealth Optima Plan is a protection and savings oriented unit linked insurance plan. The plan provides life insurance cover to protect your famil...

    Know more