What is The Importance of financial Planning for Retirement

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

Importance of financial Planning for Retirement

Importance of financial Planning for Retirement
  • 4th Mar 2020 |
  • 4,499

Retirement is a much-needed break you get after working for years on end. But it also halts your monthly salaries and increments. Suddenly you have to keep an eye on your expenses and curb the need for splurging on certain luxuries. But is this the ideal retirement plan? To avoid this, let’s understand why you need to plan your retirement beforehand to secure your expenses.

What is Retirement Planning?

Retirement planning is the process of understanding your expenses and setting specific goals to take of future expenses. Without a steady income, you will have to manage your cost of living and also account for emergencies. With the help of retirement planning, you are able to take care of your spending without depending on your family.

Why Should You Start Retirement Planning?

Retirement is a period where you have no steady income to rely on and passes by quickly just like your first day at work. Gone are the days when you could save up some money and depend on your children. With the ever-increasing inflation rate and unforeseen emergencies, everyone needs to have a sufficient amount of financial backup to depend upon. So, to make your retirement a smooth journey, it is crucial to start planning as soon as possible.

Reasons to Plan Your Retirement


The rise in cost is something that is inevitable. The rate of inflation may seem to be less if you consider it in the short-term but in the long run, it can greatly affect the value of money. And this not only influences the prices of luxuries that you may avoid buying during your retirement but also affects the cost of basic goods. This is why you need to have enough corpus to withstand inflation.

2.Medical Expenses

In today’s day and age, any medical emergency can come knocking at your door, leaving a dent in your savings. Also, the cost of medical help is increasing with no sign of stopping.
Due to this, you have to consider the medical expenses that you may have to bear in an emergency. With precise planning, you can enjoy your retirement days without any worries.

3.Lack of Pension

Unless you are a government employee, you won’t have a pension system at your organization. This creates a requirement to invest in pension schemes so that even you get regular payouts during retirement. It’s never too late to start and it stands true for pension schemes as well. Even if you are in your late 30s, you can choose a lucrative financial instrument that plays the role of a government pension.


Though it is only natural to expect your children to look after you, it is not fair to entirely rely on them. Instead of waiting for them to take care of your financial needs, you can build a safe for yourself and become self-sufficient. This will not only make you carefree but will also help you gain financial freedom. You will be able to spend the way you want without having to think about the impact of it on your children.

Importance of Retirement Planning

The main reason behind planning early for your retirement is to have an income source when your regular salary stops. With the uncertainty in life, you cannot predict anything. Hence, it is vital to secure yourself and your spouse in the retirement phase. A life insurance policy helps during those unforeseen incidences and safeguards your loved ones. In case something happened to you, your dependent family members would have the death benefit to assure their financial independence.

Kotak e-Invest

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

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


Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

Why Are ULIPs Called Flexible Investments?

Which Pension Plan Suits You best?

FAQs on Taxation of ULIPs

Give Your Retirement Savings A Booster-Shot with Annuities

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

Types of Pension Plans for Your Retirement

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

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

5 Common ULIP Myths That You Should Stop Believing

What are the Advantages and Disadvantages of ULIP?

Calculating a Retirement Corpus that can Support Your Lifestyle

Is ULIP a Complex Financial Product?

Retirement Planning for Millennials

What is Partial Withdrawal in ULIPs?

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

How to Win at Retirement Savings?

What is the difference between Life Insurance and ULIP?

Is It Worth Buying ULIP Plans For 10 Years?

A Quick Guide to Retirement Plans

Why Should I Invest in ULIP?

How Do Annuity Options Work In NPS

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

Terminologies You Should Understand About Retirement Plans

Is the ULIP Policy Surrender Value Taxable?

What is a Retirement Plan - What are its Features?

What are the Charges Levied on ULIP?

Benefits of Early Retirement Plans

Which Is Better: ULIP or SIP?

Do ULIPs Give Good Returns On Investments?

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

Save Early to Keep Living Your Dreams Post Retirement

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

Is ULIP Better Than FD?

यूलिप के फायदे (Benefits of ULIP in Hindi)

Invest for your second innings with a guaranteed savings plan

Is ULIP a Good Option for People Above 60?

Why are ULIPs One of the Best Tax Saving Instruments?

Un-Retirement - Are You Ready For It?

How can NPS help you save tax?

Top Investment Options for Retirement Planning

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

Best Insurance Plans for a Guaranteed Monthly Income After Retirement!

Retirement planning with a systematic life insurance plan

The Significance of Number 8,000 in Retirement Planning

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

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

5 Steps to Gift a Smart Retirement Plan to Your Parents

ELSS vs ULIP: Which is a Better Investment?

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

Top 6 Reasons Why You Should Get A Pension Plan

Know Why You Should Stay Invested in Your ULIP Plan

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

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

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

What is ULIP and Its Benefits?

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

NPS for Housewife

Retirement: A New Start to Life!

Retirement Planning Guide for Working Men and Women

Which are the Best ULIP Plans in India for Children?

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

What are the Instruments Available for Building a Retirement Corpus?

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

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

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

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

Are Annuities Great For Early Retirement?

Top 4 Mistakes To Avoid While Planning For Your Retirement

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

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

Top 6 Flexible Benefits That ULIPs Offer

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

5 Notable Investment Options for Retirees

Tips to invest your voluntary retirement scheme money

Long Term Investment Guide for Your Retirement

What tax benefits are there on saving for retirement?

Different Types of Retirement Schemes

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

How Safe is it to Invest in ULIP plans?

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

At What Age Should You Start Your Retirement Planning?

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

Inflation: A Key Factor to Consider into Retirement Planning

Why ULIP Should Be a Part of Your Investment Portfolio?

Ten Signs That You're Ready to Retire

How Much Corpus Does One Need for Retirement?

What are ULIPs and their Types?

What are the Uses of ULIP?

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

8 Charges in ULIP That You Must Know

What is Lock-In Period in ULIPs?

Important Questions To Ask Yourself Before Choosing A Good Retirement Plan

What Happens to ULIP Premiums Paid if the Market Crashes?

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

Advantages of Pension Schemes and Retirement Plans

Meaning of Sum Assured in a ULIP

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

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

Importance of Retirement Planning

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

How should one decide on fund allocation within NPS?

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

5 Reasons to Buy ULIP for a Secured Financial Future

7 Secrets that can Make Your Post-Retirement Phase Prosperous

Is ULIP A Good Investment Option?

Understanding Annuity Plans

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

What is Fund Value in ULIP?

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

Why Should You Invest in NPS?

How Does ULIP Work in India?

ULIP Plan or Traditional Insurance Plans - Which is better?

What Are Retirement Pension Plans?

Retirement Planning at 50? You Are Still Good to Go

यूलिप के 8 शुल्क

How To Keep Your Retirement Accounts from Being Hacked?

Benefits Of Retirement & How Investments Can Help You Enjoy Them

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

Can I Surrender My ULIP Policy after 2 Years?

Demystifying the Retirement Planning Process

Different Types of ULIP Investments in India

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

What are the Rules for Exit From NPS?

Top 4 Myths About ULIP Investments You Should Know

Can NRIs Invest in ULIP Plans Offered in India?

What Are Superannuation Benefits?

Do Pension Plans Allow any Death Benefits?

How Can I Achieve My Wealth Goal with ULIP Investment?

What is the Minimum Lock-in Period for ULIP?

What are the Benefits of ULIP - Explained

Why You Should Invest In An Annuity Plan?

What are the things to consider before buying ULIPs?

How To Make Most of Your Money After Retirement?

How To Choose The Right Pension Plan?

Pros and Cons of Retirement Annuities

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

What Are Mortality Charges In ULIP?

Saving for approaching retirement with retirement insurance

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

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

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

How Does NPS Work?

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

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

How has ULIP Grown Over the Last 3 years?

Benefits of Early Retirement Planning in India

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

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

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

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

A Beginner's Guide to Understanding 401k Retirement Plan

How Does Pension Plans in India Works?

What are the Differences Between ELSS ULIP and Mutual Funds?

How Has NPS Performed in Comparison with Other Instruments?

Types of Retirement Plans