Even at a conservative rate of return of eight per cent, the retirement corpus these individuals need is Rs 23.78 crore and Rs 12.08 crore for the 35-year-old and the 45-year-old, respectively.
And, to create this kind of a corpus, both individuals will have to invest close to Rs 14000 a month and Rs 25500, respectively.
Financial planners are not in favour of accumulating retirement corpus through pension products or insurance plans.
The main reason is the low rate of returns (compared to other instruments) and high cost associated with these products.
The regulator has tried to make the product more policyholder-friendly, but it continues to be more expensive than other competing ones.
Certified financial planner Arnav Pandya had earlier said that pension products were not the best option to save for retirement.
"Equity mutual funds, preferably the diversified ones, could deliver much better annualised returns of 12 to 15 per cent over a period of 20-25 years," he had said.
As for a life cover, you could make do with a pure life insurance, which would come much cheaper and serve the purpose better.
Investment-cum-insurance products on the traditional platform invest heavily in debt papers, stifling the growth prospects of your money.
On a good day, you might get up to seven per cent, but mostly it is between 5.5 per cent and six per cent.
Even the unit-linked plans with equity fund option, experts say, give only up to eight per cent a year.