7 Essential Questions to Ask yourself while Planning your Retirement

7 Essential Questions to Ask Yourself While Planning Your Retirement

Get answers to key retirement planning FAQs: when to start, how much to save, and where to invest for a secure future.

Written by : Knowledge Centre Team

2025-08-02

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8 minutes read

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We work hard and earn a living so that when we retire, we can spend time with our families. Planning a trip abroad, starting a new hobby, giving more time to your children, and, above all, attaining full freedom are the things we aspire to after retirement.

But to make all these things achievable, we need to properly plan for our retirement. Retirement planning is crucial for building a substantial corpus during your working life that can be utilised in the future.

A good retirement plan will provide answers to the most important questions about your retirement goal.Here are seven of the most essential retirement planning FAQs that will help you plan effectively:

Key Takeaways

  • Start retirement planning as early as possible to build a strong financial foundation.
  • Your retirement age should align with personal milestones, financial readiness, and lifestyle goals.
  • Calculate how much to save based on current expenses, inflation, and retirement lifestyle expectations.
  • Choose investment options that suit your risk profile—mix low-risk and market-linked instruments for balance.
  • Understand the tax treatment of pensions, annuities, and retirement plans to maximise post-retirement income.

When to Retire?

This is the most common question regarding retirement. In India, the retirement age is generally between 58 and 60 years. However, nowadays, many people are taking early retirement from their jobs at the ages of 50-55.

The decision to retire must be made after considering various factors. These can be the following:

  • Financial Situation- You should be financially stable. That is the first and foremost consideration. After retirement, your income stops. Decide whether your corpus is enough to take you through the years to come.
  • Assess your Goals- There are some milestones that you want to achieve while you are still working. These can be marrying your daughter, taking care of your child's education, buying a new house, etc.

How Much to Save?

You need to save a certain amount regularly, specifically for retirement. The answer to how much you should save depends on the age at which you will be retiring.

The more time you have before retiring, the less you will have to invest per month. On the other hand, you will have to save more if you start planning at a later stage.

The retirement fund should be such that it can replicate the income that you earned at the age of 30.

Let's understand with an example, Ishaan is a 30-year-old married individual. He decides to start saving for retirement. He currently earns ₹1 lakh per month. To be able to live on this amount at the age of 60, he must contribute at least 9-10% of his monthly salary.

If he wants to retire early, say at 55, then he has to contribute in the range of 18-20% of his salary regularly. If Rahul wants to retire at 50, then the amount he has to contribute every month rises to a whopping 34%.

 

How Much Will You Need to Retire?

Everyone lives a different life. Thus, there is no specific amount that can be deemed enough for retirement. It depends on factors such as your current expenses, number of dependents, your future needs, etc.

Take into account all the future expenses you will incur. These can include your kitchen expenses, house maintenance expenses, and monthly bills. Make sure you keep a certain amount aside to meet emergencies as and when they arise.

Apart from these basic expenses, you should also consider your plans after retirement. Will you be working again? Will you be spending your money on leisure activities such as travelling, etc.?

Use a retirement planning calculator to find out the corpus you need to build.

Retirement Calculator

A retirement planning calculator is a simple tool that gives you an idea of the corpus you can accumulate with a regular monthly investment for your golden years.

1
My Retirement Age
2
Amount Invested
3
Additional Details
4
Our Recommendation
My Retirement Age
Amount Invested
Additional Details
Our Recommendation
Retirement
Your Current Expenses are Rs 50,000/month
Inflationary Expenses you will need post retirement Rs 1,00,000/month
Hi {customerName}
We recommend to start Investing
For remaining {remainingYears} years
View Now
Desclaimer-

The above calculation and illustration of figures are indicative only and not on actual basis.

Where to Invest for Retirement?

After assessing how much you can invest and how much you will need for your post-retirement, the next question that arises is how to reach the amount you require. Sound investments can help you do that.

You can invest in the following investment options for your retirement as per your risk appetite and preferences.

  1. If you do not like to take many risks and want to ensure that your corpus remains safe then you can consider the following investments.
    • Public Provident Fund (PPF)
    • Employees Provident Fund (EPF)
  2. If you can afford to take some risks and prefer high wealth creation rather than average returns, then you can take a look at the following market-linked plans.
    • NPS
    • ULIPs

    If investment safety is your preference for retirement, you can consider the Savings Plan by Canara HSBC Life. This plan provides you with the benefit of savings while at the same time protecting you by offering life cover. In this plan, you are entitled to receive guaranteed returns on maturity, along with bonuses.

Will the Pension be Taxable?

All the investment options listed in the above point differ based on taxability. Whether the amount you receive at the end is taxable or not depends on the option you have invested your money in.

For example, if you invest a lump sum in immediate annuities on or after retirement, your regular pension will be taxable. However, long-term ULIP plans and deferred annuity plans where you can invest regularly for some time may offer better tax benefits.

For example, ULIPs by Canara HSBC Life Insurance allow tax-free partial withdrawals if:

  • Your annual investment into the plan has never exceeded 10% of the life cover
  • Our total annual investment into this ULIP was below ₹2.5 lakhs (w.e.f. 1st Feb 2021)

 

Is NPS Enough to Retire Safely?

NPS is one of the most popular investments to safeguard your retirement. In this scheme, your money is invested in market securities. The saving scheme will mature when you retire. You can withdraw 60% of your corpus at maturity, and the remaining must be used for an annuity.

Continuing with the same example as Rahul, He decides to invest 10% of his income, i.e., ₹ 10,000, towards NPS. He decides to retire at 60. Assuming the rate of interest is at 8%, his corpus will be equal to ₹ 1.48 cr. In the same case, if he continued with the policy for another 10 years, that is till 70, his corpus would become ₹3.4 Cr.

Thus, the longer you stay invested in your NPS account and the more you contribute, the more wealth you can create.

Click here to use compound interest calculator

What is the Right Age to Begin Retirement Investment?

From all the points listed above, it becomes clear that the more time you give yourself to invest, the better your fund value will be, no matter which investment you choose.

So, it is better to start early. You can start by setting aside a small sum from the day you start earning. As your income grows, you can increase your contribution.

Also Read - Senior Citizen Card

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Conclusion

Retirement may feel far off, but planning for it should start today. The earlier you begin, the more control you have over your future lifestyle and financial security. By answering key questions around savings, investment choices, and tax implications, you can build a retirement plan that suits your needs and goals.

Remember, there's no one-size-fits-all approach; what matters most is consistency and informed decision-making. Stay disciplined, review your plan regularly, and adapt as your life evolves. A well-planned retirement is not just a financial milestone, but your gateway to freedom, peace of mind, and purposeful living.

Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.

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