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


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.

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

Have you lost your job or resigned? Sudden loss of employment can impact your financial planning. Here are the 3 ideas to handle your retirement accounts during an employment lapse.

  • Nov 30, 2021

Whether you lost your job or resigned, a sudden loss of employment can derail your financial planning. Unfortunately, retirement accounts are the ones that usually take a significant blow. However, planning and re-analysing your financial priorities can help you better manage your retirement accounts in times of temporary financial instabilities arising out of employment lapses.

Keep calm and consider the following three suggestions to better tackle this temporary crisis.

1. Utilise Your Gratuity

Gratuity is the amount that the employer pays to all the employees as a token of gratitude for the number of years in service. As per the Payment of Gratuity Act, 1972, it is the statutory obligation of an employer to clear the gratuity dues of any former employee within 30 days of receiving the application. An employee must serve a minimum tenure of 5 years or more to be eligible for gratuity.

The gratuity amount is usually an unexpected cash flow into your finances. It is pretty likely that you can manage your daily finances without engaging your gratuity amount. In such a scenario, you can consider using this extra fund towards your retirement fund.

For example, you can also consider buying an immediate annuity plan or a deferred one through your gratuity amount without straining your immediate personal finances.

2. Don’t Touch Your EPF Account

The Employee Provident Fund or EPF is a retirement scheme where the employer matches the contribution of the employee to build a retirement corpus for the employee. Under The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, an employer must provide EPF benefits to their employees.

You are eligible to close your EPF account and withdraw the entire amount after two months of quitting your job. However, it is advisable to keep your EPF account untouched for the following reasons.

  • On re-employment, you can transfer the amount in your existing EPF account to the new EPF account. This will help in getting the benefits of compounding in future.
  • Your EPF account can keep earning interest for 36 months after quitting your job. So, it will help in the compounding of your fund.

In unavoidable circumstances, consider partial withdrawals from your EPF account.

3. Review your Expenses

It is time to get back to basics. Make a budget for your household expenses. You can surely find certain expenses that can be curtailed or removed altogether for the time being. No need to take drastic measures. Consider little steps like using public transport more frequently than a personal vehicle, keeping an eye for discounts or comparing and bargaining prices while shopping for essential items, etc.

Having said that, never curtail on health insurances, if any. A medical emergency during unemployment can be a nightmare. So, try to continue your insurance premiums like before.

The sudden onset of unemployment is challenging, but you must face it with a never-say-die spirit and a calm state of mind. Bad times can bring new and grand opportunities. Once you draw a clear path to handle your retirement accounts, embark on your mission to find a way or make a new one.

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

Calculating a Retirement Corpus that can Support Your Lifestyle

What is Partial Withdrawal in ULIPs?

What is a Defined Benefit Plan and How it Works?

Can I Surrender My ULIP Policy after 2 Years?

Types of Pension Plans for Your Retirement

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

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

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

What are the Advantages and Disadvantages of ULIP?

EPF Grievance Management: All You Need to Know

How Can I Achieve My Wealth Goal with ULIP Investment?

Is ULIP Better Than FD?

Why ULIP Should Be a Part of Your Investment Portfolio?

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

Meaning of Sum Assured in a ULIP

Which Pension Plan Suits You best?

Terminologies You Should Understand About Retirement Plans

Types of Retirement Plans

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

How To Keep Your Retirement Accounts from Being Hacked?

5 Steps to Gift a Smart Retirement Plan to Your Parents

Benefits of Early Retirement Planning in India

Un-Retirement - Are You Ready For It?

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

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

At What Age Should You Start Your Retirement Planning?

What Happens to ULIP Premiums Paid if the Market Crashes?

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

What Are Superannuation Benefits?

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

Inflation: A Key Factor to Consider into Retirement Planning

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

What are the Differences Between ELSS ULIP and Mutual Funds?

Know Why You Should Stay Invested in Your ULIP Plan

5 Common ULIP Myths That You Should Stop Believing

What are the things to consider before buying ULIPs?

What is a Retirement Plan - What are its Features?

Retirement Planning at 50? You Are Still Good to Go

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

What are ULIPs and their Types?

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

ULIP Plan or Traditional Insurance Plans - Which is better?

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

Retirement Planning for Millennials

What Are Retirement Pension Plans?

Understanding Annuity Plans

What are the Uses of ULIP?

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

What are the Rules for Exit From NPS?

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

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

Different Types of Retirement Schemes

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

5 Reasons to Buy ULIP for a Secured Financial Future

Why You Should Invest In An Annuity Plan?

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

Important Questions To Ask Yourself Before Choosing A Good Retirement Plan

Do Pension Plans Allow any Death Benefits?

How To Choose The Right Pension Plan?

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

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

Tips to invest your voluntary retirement scheme money

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

What tax benefits are there on saving for retirement?

Benefits Of Retirement & How Investments Can Help You Enjoy Them

How Safe is it to Invest in ULIP plans?

Is ULIP a Complex Financial Product?

Can NRIs Invest in ULIP Plans Offered in India?

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

Ten Signs That You're Ready to Retire

Top 6 Reasons Why You Should Get A Pension Plan

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

7 Secrets that can Make Your Post-Retirement Phase Prosperous

Is ULIP A Good Investment Option?

A Beginner's Guide to Understanding 401k Retirement Plan

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

Pros and Cons of Retirement Annuities

How Does ULIP Work in India?

How should one decide on fund allocation within NPS?

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

How to Win at Retirement Savings?

ELSS vs ULIP: Which is a Better Investment?

NPS for Housewife

Importance of Retirement Planning

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

Give Your Retirement Savings A Booster-Shot with Annuities

8 Charges in ULIP That You Must Know

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

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

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

What is the Minimum Lock-in Period for ULIP?

Top 4 Mistakes To Avoid While Planning For Your Retirement

यूलिप के 8 शुल्क

How Does NPS Work?

A Quick Guide to Retirement Plans

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

How Do Annuity Options Work In NPS

5 Notable Investment Options for Retirees

What are the Benefits of ULIP - Explained

How Does Pension Plans in India Works?

Is It Worth Buying ULIP Plans For 10 Years?

What are the Charges Levied on ULIP?

What is Fund Value in ULIP?

Top 6 Flexible Benefits That ULIPs Offer

Different Types of ULIP Investments in India

What Are Mortality Charges In ULIP?

What is the difference between Life Insurance and ULIP?

Importance of financial Planning for Retirement

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

Is ULIP a Good Option for People Above 60?

Retirement Planning Guide for Working Men and Women

Advantages of Pension Schemes and Retirement Plans

Invest for your second innings with a guaranteed savings plan

Is the ULIP Policy Surrender Value Taxable?

Benefits of Early Retirement Plans

Long Term Investment Guide for Your Retirement

The Significance of Number 8,000 in Retirement Planning

Which Is Better: ULIP or SIP?

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

How has ULIP Grown Over the Last 3 years?

Retirement planning with a systematic life insurance plan

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

Save Early to Keep Living Your Dreams Post Retirement

Retirement: A New Start to Life!

Top Investment Options for Retirement Planning

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

Demystifying the Retirement Planning Process

Best Insurance Plans for a Guaranteed Monthly Income After Retirement!

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

Top 4 Myths About ULIP Investments You Should Know

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

What is Lock-In Period in ULIPs?

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

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

What are the Instruments Available for Building a Retirement Corpus?

How can NPS help you save tax?

FAQs on Taxation of ULIPs

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

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

Why Should You Invest in NPS?

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

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

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

Do ULIPs Give Good Returns On Investments?

Are Annuities Great For Early Retirement?

How To Make Most of Your Money After Retirement?

How Much Corpus Does One Need for Retirement?

How Has NPS Performed in Comparison with Other Instruments?

Retirement Planning: Use our Retirement Calculator to Plan Ahead