Written by : Knowledge Centre Team
2026-02-20
994 Views
7 minutes read
Share
With a rapidly rising population of the elderly in the country, retirement planning has become a must. Even as the population of elderly has become more than 80 million in the country, a large section of them are not covered by any formal, state-sponsored retirement scheme. According to government data, only 12% of the working population has access to formal retirement cover, while the vast majority is without the social security umbrella.
Alongside the demographic changes resulting in an increase in population of the elderly, the advances in medical science has resulted in increased life expectancy. This means that the elderly population requires funds for their financial requirements for a longer period. Also, the changes in society have resulted in an increasing focus towards nuclear families, where the elderly population no longer have the comfort of support from a large joint family. These crucial factors make it indispensable for any individual to have a retirement plan. And, to have a viable retirement plan, you are required to understand your future spending goals.
Retirement planning in the Indian context: Given the unique socio cultural milieu of the country, you can only retire after having fulfilled your responsibilities towards your family. You have to meet crucial life-stage goals, like providing funds for your child’s education and their marriage. So retirement planning in Indian context requires taking into account all your future spending goals at the key stages of life.
Steps required in retirement planning: Typically, to draw a retirement plan. You need to consider the fund requirement for your post-retirement years. With the rise in per capita income, you must always consider a sufficiently large retirement corpus for your future needs.
- Zeroing in on the investment vehicle: The second step in retirement planning involves selecting the right investment vehicle to generate retirement funds.
- Investment of the retirement corpus: Once you have a retirement corpus, you also require to invest it wisely in appropriate avenues.
How to Calculate the Income Required for Retirement?
- The foremost step to calculate the income required for your post-retirement years is to consider your present income requirements. While cost incurred in some financial requirements would decrease after retirement, there would be corresponding increase in other aspects. For example, you will have less income tax liability in the post-retirement years, while costs involved for medical expenses could increase. Similarly, you might be spending more on vacation and entertainment expenses, while saving the commutation costs. By adjusting and extrapolating your future and present expenses, you can arrive at the total expenses required after retirement.
- You must always remember to account for inflation while drawing a retirement plan and considering future spending goals. Inflation is simply the rise in cost of living expenses, like increase in the prices of food items, consumer goods, medical expenses etc. As inflation can negatively impact your retirement corpus, you should ensure to have a sufficiently large retirement corpus. Once you adjust the cost of inflation, you can arrive at the correct figures for the required income after retirement.
- Investment avenues for building a retirement corpus: Once you estimate the funds required, you can select to invest in different investment vehicles, in sync with your future spending goals. Industry experts suggest retirement planning from an early age. You can choose to invest in:
- National Pension Scheme: This is a government-sponsored retirement scheme, where you can start contributing a minimum of Rs 500 in a year. After retirement, you can withdraw up to 60% of the maturity amount, while the rest is used to provide you with annuity. In addition to the compulsory Tier I account, you can also open a Tier II account within the NPS. You can withdraw your corpus from the latter at any given point of time.
- Public Provident Fund: This is another retirement plan offered by the government. It has a lock-in period of 15 years. You can invest a minimum of Rs 500 each month in the PPF.
- Mutual Funds pension plans: These provide high returns over a long-term period. Here you can opt for a systematic withdrawal plan. You are also not required to purchase annuity.
Conclusion
Thus, before drawing a retirement plan, always remember to consider your future spending goals. Among the different options for building retirement corpus, you can also zero in on Unit Linked Insurance Plans (ULIPs), which provide the dual benefits of market-linked returns along with the protection of a live cover. You can zero in on the Promise4Growth Plus Canara HSBC Life Insurance, which maximises your savings through loyalty Additions, wealth boosters and return of mortality charges.
Get Expert Guidance for Your Retirement & Investments
Enter OTP
An OTP has been sent to your mobile number
Didn’t receive OTP?
Application Status
Name
Date of Birth
Plan Name
Status
Unclaimed Amount of the Policyholder as on
Name of the policy holder
Policy Holder NamePolicy No.
Policy NumberAddress of the Policyholder as per records
AddressUnclaimed Amount
Unclaimed Amount
Sorry ! No records Found
Request Registered
Thank You for submitting the response, will get back with you.
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.
Recent Blogs
Pension Plan Payout Options: Choosing the Right Retirement Income
25 Feb '26
73 Views
6 minute read
Explore different pension payout options such as annuity types, lump sum withdrawals, and income streams to select the best retirement income strategy for your needs.
Read More
Retirement Plan
Retirement Age in India: Current Rules & Planning Insights
25 Feb '26
71 Views
6 minute read
Learn about the official retirement age across sectors in India, early retirement considerations, and how retirement timing impacts long-term financial planning goals.
Read More
Retirement Plan
Retirement Planning for Couples with Unequal Income Levels
24 Feb '26
56 Views
6 minute read
Learn how couples with unequal income streams can plan retirement effectively through joint investments, income pooling, and optimized retirement corpus strategies.
Read More
Retirement Plan
7 Percent Rule for Retirement in India: How It Works?
24 Feb '26
83 Views
7 minute read
Understand the 7 percent retirement rule, how it estimates required retirement savings, and how Indian investors can apply this approach for stress-free retirement planning.
Read More
Retirement Plan
What is a Deferred Pension? Meaning and It's Types
23 Feb '26
750 Views
7 minute read
Deferred Pension means you get the pension fund that you have accumulated a little later. You have the option to delay the accessibility to your pension pot.
Read More
Retirement Plan
How to Check Old Age Pension? A Step-by-Step Guide
22 Feb '26
1039 Views
7 minute read
Discover the easy steps to check your old age pension status with our comprehensive guide. Ensure a secure retirement with Canara HSBC Life Insurance expert advice and assistance. Stay informed about your pension effortlessly.
Read More
Retirement Plan
Plan Retirement for a ₹30,000 Monthly Pension: Steps to Build Your Corpus
20 Feb '26
720 Views
8 minute read
Learn how to plan retirement for a ₹30,000 monthly pension. Estimate retirement corpus needs, start early, and choose the right savings options.
Read More
Retirement Plan
Will Your Retirement Corpus Be Enough? How to Check?
19 Feb '26
1925 Views
8 minute read
Calculate whether your retirement corpus can support your future lifestyle. Review expenses, inflation, savings, and income sources to estimate retirement readiness.
Read More
Retirement Plan
How to Choose the Best Retirement Plan in India? A Simple Guide
17 Feb '26
901 Views
9 minute read
Choose the best retirement plan in India with practical tips on savings, pension options, tax benefits, and long-term financial security.
Read More
Retirement Plan
Retirement - Top Selling Plans
We bring you a collection of popular Canara HSBC life insurance plans. Forget the dusty brochures and endless offline visits! Dive into the features of our top-selling online insurance plans and buy the one that meets your goals and requirements. You and your wallet will be thankful in the future as we brighten up your financial future with these plans.
Fixed Returns, Zero Risks & Worries
iSelect Guaranteed Future Plus
- 4 Plan options
- Life cover + Guaranteed benefits
- Accidental death benefit
- Premium protection cover
Retire Grand with Flexi Benefits
Smart Guaranteed Pension
- Guaranteed Lifelong Income
- Limited premium payment term
- Multiple annuity options
- Option to defer the annuity payments
Save, Dream, Plan. Live Peacefully
iSelect Guaranteed Future
- 4 Plan options
- Option to choose premium payment term
- Get Tax benefits
- Premium protection cover
Popular Searches
- Retirement Calculator
- Best Retirement Plan
- Senior Citizen Card
- Saral Pension Plan
- NPS Withdrawal
- Pension4Life Plan
- Retirement Planning
- 5 Retirement Tips
- National Pension Scheme
- NPS Pension Calculator
- Types of Pension Plan
- Guaranteed Pension Plan
- Is Pension Taxable
- How to Check Old Age Pension Status
- Benefits of Pension Plan
- How GST Applies to Pension Plan?
- Tax Planning for Retirement
- Types of Retirement Plans
- Guaranteed Pension Plans
- Retirement Income Plans