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Retirement Isn’t About Age, It’s About your assets

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Retirement Isn’t About Age, It’s About your assets
March 25, 2025

Table of Content

 

The investment risk of ULIP is borne by the policyholder.

Most people imagine retirement as a specific age. For some it may be 60, and for others it may be 65. But is it really about hitting a milestone on the calendar? Not quite. It’s more than that. It’s about whether your financial assets can care for your needs when you stop working.

Think about it. If someone in their 40s has built enough wealth to live comfortably without a job, they’re already retired in a financial sense. On the other hand, someone in their 70s who still needs an income to meet daily expenses hasn’t truly retired. 

The life expectancy in India today is nearly 71 years*. Many people live well into their 80s and 90s with better healthcare and lifestyle changes. That means retirement could last 20 to 30 years. Maybe even more. Without a steady stream of money, those years can feel uncertain.

The key? Having the right financial foundation. Whether it’s a ULIP (Unit Linked Insurance Plan) or a strong savings plan strategy, what matters is ensuring that your money works for you. And they should, even when you’re no longer working.

Building financial security for retirement

Imagine this situation: You’ve worked hard for decades, saved some money, and now it’s time to step away from the daily grind. But here’s the big question. Will your savings last? Relying only on a pension or deposits might not be enough. Inflation keeps eating into the value of money. Something that costs ₹50,000 today might cost ₹1 lakh or more in two decades. That’s why depending on just one source of income, especially post retirement, can be risky.

A ULIP can help here. It not only gives life cover, but also grows your invested wealth over time. By investing in market-linked funds, a ULIP offers the potential for higher returns than traditional savings options. Over 20 to 30 years, compounding can turn even modest contributions into a sizeable retirement fund.

Retirement isn’t a one-time event. It’s a long phase of life. The more prepared you are, the more relaxed those years will be.

Why just saving in bank account isn’t enough

Many people believe that setting aside a chunk of their salary every month is enough for retirement. But savings in bank accounts alone don’t always grow fast enough to keep up with rising costs.

Let’s take an example to understand this mistake better. Say you save ₹10,000 per month in a bank account for 20 years. That adds up to ₹24 lakh (₹10,000  multiplied by 240 months). But with inflation, that amount might not cover what you expect. Even at a 6% inflation rate, something that costs ₹1 lakh today could cost ₹3.2 lakh in 20 years.

That’s why a combination of insurance savings plans and market-linked investments makes sense. Insurance savings plans offer stability and guaranteed benefits. Setting aside a fixed amount regularly in an insurance savings plan builds a strong safety net. It’s not about how much you earn but how wisely you put it to work.

Market-linked options, such as ULIPs, provide a chance for higher growth. A right mix of both investment avenues can help balance risk and returns.

The key is to start early. The longer your money stays invested, the more it can grow.  For example, if you invest ₹10,000 per month in an insurance savings plan offering a 7% annual return, you could accumulate over ₹52 lakh in 20 years. Wait 10 years to start, and the total drops to just ₹22 lakh. Compounding works best when given time and helps turn small contributions into a reliable financial cushion for the years ahead.

Retirement planning is about cash flow

A large retirement fund might look impressive, but what really matters is whether it can generate enough income to cover your monthly expenses. Think of it like this: owning a house worth ₹2 crore won’t help with daily costs unless it generates rent or you sell it. Retirement works the same way.

Let’s take two individuals. 

1. Amit has ₹1 crore in fixed deposits but no other income sources. He withdraws ₹50,000 per month for expenses. Over time, his savings shrink, and inflation makes things harder. By the time he reaches 80, his funds could be nearly exhausted.

2. Suresh, on the other hand, has ₹1 crore spread across an insurance savings plan, a pension plan, and a market-linked investment. His pension plan provides ₹30,000 per month, and his insurance savings plan offers guaranteed benefits at regular intervals. Meanwhile, his market-linked funds keep growing. This way, his shot at a steadier cash flow is much better, while keeping his investments intact.

The difference? Cash flow. Instead of depleting his savings, Suresh’s income sources work together. This would make his retirement more stress-free than Amit’s. With the right planning, your money keeps flowing, so you never have to worry about running out.

A retirement plan that works for you

Retirement isn’t about age. It’s about financial freedom when salary income stops. The key is not just saving, but creating steady income streams that support your lifestyle for as long as you live.

A mix of insurance savings plans, pension schemes, and market-linked investments can help you build a strong, reliable cash flow. Even as you stop working, your money keeps working for you.

Starting early makes all the difference. The longer your money grows, the easier it is to enjoy a relaxed retirement. Make the smart move so that your assets allow you to live the life you want.

Source-

*https://www.macrotrends.net/global-metrics/countries/IND/india/life-expectancy

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Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

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Vishal Subharwal Vishal Subharwal

Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.

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Unit Linked Insurance products do not offer any liquidity during the first five years of the contract. The policyholders will not be able to surrender/withdraw the monies invested in Unit Linked Insurance Products completely or partially till the end of fifth year.

Unit Linked Life Insurance products are different from the traditional insurance products and are subject to the risk factors. The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions.

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