Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak Guaranteed Fortune Builder

A plan that offers guaranteed income for your future goals. Know more

Kotak e-Term

Protect your family's financial future. 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 life cover. Know more

Kotak e-Invest

Insurance and Investment in one plan. Know more

Kotak Lifetime Income Plan

Retirement years are the golden years of life. 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.

Changing Jobs? Reinvest Your Retirement Funds

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.

Kotak Life Time Income Plan

Download Brochure


  • 6 Plan Options
  • Tax benefits ^
  • Higher annuity rates for higher purchase price
  • 4 Annuity Modes

Ref. No. KLI/23-24/E-BB/1052


- A Consumer Education Initiative series by Kotak Life

Similar Articles

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

15 Passive Income Ideas for Seniors to Boost Retirement Income

Inflation: A Key Factor to Consider into Retirement Planning

What Are Retirement Pension Plans?

Embracing the FIRE Movement: Financial Independence and Early Retirement

How Has NPS Performed in Comparison with Other Instruments?

What Are Superannuation Benefits?

Retirement Planning at 50? You Are Still Good to Go

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

The Significance of Number 8,000 in Retirement Planning

Types of Pension Plans and Their Tax Benefits

What tax benefits are there on saving for retirement?

A Quick Guide to Retirement Plans

Top 3 Reasons Why You Should Start Retirement Planning Early

How should one decide on fund allocation within NPS?

What are the Instruments Available for Building a Retirement Corpus?

Types of Pension Plans for Your Retirement

How Do Annuity Options Work In NPS

What are the Differences Between ELSS ULIP and Mutual Funds?

Retirement planning with a systematic life insurance plan

Plan Your Retirement in India - Retirement Calculator

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

How to Calculate Your Retirement Corpus?

Which Pension Plan Suits You best?

Retirement: A New Start to Life!

NPS for Housewife

Retirement Planning for Millennials

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

ELSS vs ULIP: Which is a Better Investment?

Is an Annuity a Good Investment Option?

Ten Signs That You're Ready to Retire

7 Secrets that can Make Your Post-Retirement Phase Prosperous

What is a Defined Benefit Plan and How it Works?

Early Retirement Planning Tips

Here's are Advantages of Pension Schemes and Retirement Plans

What are the Charges Levied on ULIP?

Reasons you should Buy a Retirement & Pension Plan

Understanding Annuity Plans

How to Register An EPF Grievance Online

Benefits of Annuity Plan Investment

The Rise of ESG Investing in Retirement Planning

Retirement Planning: Use our Retirement Calculator to Plan Ahead

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

Why is it Good to Have a Retirement Plan Before Your Marriage?

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

Long-Term Investing: Boost Retirement Income with an Income Booster

How to Protect Your Retirement Account from Hackers

14 Tips to Ensure Successful Retirement Planning

How To Choose The Right Pension Plan?

Is ULIP Better Than FD?

Know the Pros and Cons of Retirement Annuities

How Does NPS Work?

5 Best Investment Options for Senior Citizens in India

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

Managing Your Money After You Retire

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

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

Mistakes You Must Avoid While Planning Retirement

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

How Can NPS Help You Save Tax?

Benefits of Early Retirement Planning

Benefits of Early Retirement Planning in India

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

Here's Retirement Planning Guide for Working Men & Women

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

Tips to invest your voluntary retirement scheme money

Which Is Better: ULIP or SIP?

How to Maximize Your Retirement Savings with a Pension Scheme in India

Importance of financial Planning for Retirement

Terminologies You Should Understand About Retirement Plans

Retiring soon? Here’s why buying annuity plans may make sense

Types of Retirement Plans

Turbocharge Your Retirement Savings with Annuities: Unlock Greater Returns

How to Win at Retirement Savings?

Gift Your Parents a Sound Retirement Plan

6 investment options for the retired

Different Types of Retirement Schemes

What are the Rules for Exit From NPS?

Turbocharge Your Retirement Savings with Annuities: Unlock Greater Returns

Demystifying Retirement Financial Planning

What is the Minimum Lock-in Period for ULIP?

Here's Benefits of Post Retirement Investment Options

Top Investment Options for Retirement Planning

Do Pension Plans Allow Any Death Benefits?

7 Best Guaranteed Income Plans 2023 in India Their Eligibility, Features & Benefits

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

4 Tips to Avoid Running Out of Money in Retirement

How To Check EPF Claim Status- The Complete Process

Mastering the 30:30:30:10 Rule: A Guide to Effective Retirement Planning

Right Age for Retirement Planning and How to Go About It

How Does ULIP Work in India?

Important Questions To Ask Yourself Before Choosing A Good Retirement Plan

What Is A 401(k) Retirement Plan?: A Beginner's Guide

3 Ways to Save Early to Keep Living Out Your Dreams Post Retirement

How Much Corpus Does One Need for Retirement?

What Retirement Would Look Like 30 Years From Now

Importance of Retirement Planning

Which are the Best Investment Plans for Indian Senior Citizens in 2022?

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

Pension Funds In India – Meaning, Overview, How Do Pension Funds Work, Types, Pension Plan Features and Tax Benefits

What are the Benefits of ULIP - Explained

What Are Mortality Charges In ULIP?

Guide to Long Term Investment

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

What is a Retirement Plan - What are its Features?

How to Save for Retirement With Retirement Investment Plans?

Meaning of Sum Assured in a ULIP