Pension plans also known as retirement plans are investment plans that lets you allocate a part of your savings to accumulate over a period of time and provide you with steady income after retirement. Even if a person has a good amount of savings, a retirement plan is nevertheless crucial. Savings get exhausted very fast and are sometimes used in emergencies, so selecting the best pension scheme helps you secure your cash flow for meeting basic daily needs post retirement. When you continuously invest in retirement plans, the amount grows manifold due to the compounding effect which makes a lot of difference to your final savings corpus. A right pension scheme lets you plan for retirement in a phased manner. So it is advisable to choose a best retirement plan that can act as a savior in your golden years.
Compare and invest in pension plan to enjoy an independent and financially secure retirement. Choose a best retirement plan at PolicyBazaar.
|
Pension Plan Name |
Entry Age |
Vesting Age |
Policy Term |
Annual Premium Amount |
Sum Assured |
|
Reliance smart Pension plan |
8 – 65 years |
45 – 756 years |
10 – 30 years |
Rs. 24,000/- |
N/A |
|
Bajaj Allianz Retire Rich |
30 – 73 years |
N/A |
7 -30 years |
Rs.15000/- minimum |
Rs.2,04,841/- |
|
HDFC Life Pension Super Plus |
35 – 65 years |
55 – 75 years |
10 – 20 years |
N/A |
Subject to underwriting |
|
Aegon Life Guaranteed Income Advantage Insurance Plan |
20 – 55 years |
85 years |
85 – entry age |
N/A |
Rs.1 lakh (min) |
|
BSLI Empower Pension – SP Plan |
25 -70 years |
80 years |
N/A |
N/A |
N/A |
|
LIC JeevanAkshay VI |
30 – 85 years |
N/A |
N/A |
N/A |
Rs. 500/- per month |
|
LIC New JeevanNidhi |
20 – 60 years |
55 - 65 years |
5 - 35 years |
N/A |
1lakhs |
|
HDFC Life Personal Pension Plus |
18 -65 yrs |
55 yrs (min);75 yrs (max) |
10 yrs (min);40 yrs (max) |
Equal to the policy term |
Rs. 2,04,841 (min); Depends on term, age and premium (max) |
|
Reliance Immediate Annuity plan |
20 – 80 years |
N/A |
N/A |
Rs.1000/- |
Subject to underwriting |
|
HDFC Life Guaranteed Pension Plan |
35 – 65 years |
55- 75 years |
10 – 20 years |
Rs. 24,000/- |
Subject to underwriting |
|
Bajaj Allianz Retire Rich |
30 – 73 years |
N/A |
7 -30 years |
Rs.15000/- minimum |
Rs.2,04,841/- |
|
HDFC Life Assured Pension Plan – ULIP Retirement Plans |
18 yrs (min); 65 yrs (max) |
45 yrs (min); 75 yrs (max) |
10 yrs (min); 35 yrs (max) |
Rs. 24,000 (min); No limit (max) |
N/A |
|
SBI Life - Saral Pension |
18yrs (min); Regular Pay -60 years Single Pay |
40 years (min); 70 years (max) |
Regular Pay – 10 years / Single Pay – 5 years (min); 40 years (max) |
Equal to policy term or Single Pay |
Rs.1 lakh (min); No limit (max) |
Retirement plans are way better investment plans that ensure secure life after retirement. These plans have multiple classifications, based on the plan structure and benefits.These plans can be further divideded-
1. Deferred Annuity
2. Immediate Annuity
3. Annuity Certain
4. With Cover and Without Cover Pension Plans
5. Guaranteed Period Annuity
6. Life Annuity
7. National Pension Scheme (NPS)
8. Pension Funds
Deferred Annuity: A deferred pension scheme allows you to accumulate a corpus through regular premiums or single premium over a policy term. After the policy term is over, the pension will begin. The advantages of deferred pension plans are immense and these include tax benefits that are associated with this pension scheme. No tax is levied on the money that an individual invests in the plan unless he withdraws it. As deferred pension scheme can be bought by making the one-time payment or by making regular contributions towards it, therefore, the plan suits to all types of investors: those who want to invest systematically and those who have a chunk of money to invest.
Immediate Annuity: In an immediate annuity scheme, pension begins immediately. One has to deposit a lump-sum amount and pension will start instantly,basedon the lump-sum amountinvested by the policyholder. A range of the annuity options is available to choose from.Moreover, the premiums paid are exempted for tax, as per Income Tax Act, 1961.After the death of a policyholder, his nominee will be entitled to get money.
With Cover and Without Cover Pension Plans:The "with cover" pension plans have life cover component in the plan. This implies that on the death of the policyholder, a lump sum amount is paid to the family members. However, the cover amount is not very high since a large part of premium is diverted towards growing the corpus rather than covering for life risk. The "without cover" pension plan implies that there is no life cover. In the event of unfortunate death of the policyholder, the nominee will get the corpus (till the date of the death). Currently, deferred pension plans are "with cover" and immediate annuity plans are "without cover".
Annuity Certain:As per this clause, the annuity is paid to the annuitant for a specific number of years. The annuitant can choose the period and if he dies before exhausting all payments, the annuity will be paid to the beneficiary.
Guaranteed Period Annuity:As per this annuity option, annuity is given to the life assured for certain periods like 5,10,15 or 20 years, whether or not he survives that duration.
Life Annuity:As per this annuity option, pension amount will be paid to the annuitant until death. After choosing the “with spouse” option, the amount of pension will be given to the spouse of the policyholder, in case of the death of the annuitant.
National Pension Scheme (NPS):New Pension scheme has been introduced by the government for people looking to build up pension amount. You can put savings in the new pension scheme which will be invested in equity and debt market as per your preference. You can withdraw 60% of the amount at retirement and rest 40% must be used to purchase the annuity. The maturity amount is not tax-free.
Pension Funds:In a way, investing in a pension plan is a good option indeed. As these plans remain in force for a long time, they offer comparatively better returns at maturity. Pension Fund Regulatory and Development Authority (PFRDA), the government body has allowed 6 companies as fund managers.
Nowadays, people start planning for the retirement life at an early stage so that at a later stage they do not have to depend on others to make their ends meet. Usually, a conventional retirement plan encompasses following features-
Annuity
The annuity is the most distinctive feature of pension plans and generally comes in two types, immediate and deferred. As its name suggests, immediate annuity starts immediately. The insurance company pays the annuitant the annuity pension plan amount right after the receipt of the lump sum premium. These plans offer the single premium route so that the insurance company can use the amount invested by the annuitant to build up a corpus for him or her. The deferred annuity plans are the normal plans that start paying a certain sum after a few years. The insurance companies offer a diverse range of pension plans for various terms that allow the annuitant to choose the period for which they want to receive the annuity. If you are thinking of retirement planning then look for the best retirement plan in India by looking at the annuity they offer vis-a-vis the premium you will pay.
Sum Assured
The sum assured is the life insurance cover that the insured receives during the tenure of the pension plan. It gives the insured the benefit of being able to provide for his dependents if the worst comes to pass. The sum assured is generally given as a part of the ‘with cover’ pension plans. Such type of retirement pension plans give the mental peace necessary to carry on life without any worries. The life insurance companies in India calculate the sum assured in different ways. For instance, a few of them may offer pension plans with sum assured of say 10 times the premium amount, while others may provide a sum assured that equals the fund value of the policy taken by the individual. The calculation varies from company to company. In case, there is no sum assured, then the plan is more in the nature of pure play pension plan rather than an insurance plan with retirement benefits.
Vesting Age
The vesting age is the age when the investor starts receiving the pension income. Depending on when the policy was brought and the type of premium, the vesting age can be your current age if you opt for the pension plan payment to start right away (immediate annuity – lump sum premium) or after a few years such as 10-15 years. The minimum vesting age for most policies start from 40 years of age but on an average is around 50 years. The maximum vesting age is generally around 70 years, though some insurance companies may offer plans that have a maximum vesting age of 65 years or even 79 years or more.
Accumulation Period
This refers to the period when the premium is being paid by the investor for the pension plans. Some of the best pension plans in India offer the option to the investor to start paying off a part of the premium from any amounts due to be received by them. This decreases the outgo for the investor during the years leading up to retirement and helps them use their money on more urgent matters. However, most pension plans keep the accumulation period separate from the pay-out period. This helps in building up a significant corpus for the investor to receive a pension.
Payment Period
The payment period, as the name suggests, refers to the period in which the investor starts receiving the payments. This period is generally separate from the accumulation phase and helps the investor to increase his overall retirement corpus.
Surrender Value
The surrender value of pension plans is the amount the insurance company will pay the individual if they opt to surrender the retirement plan before its due date, and if they have paid the premium for the required minimum period. Though people may need to surrender a plan for various reasons, including not being able to continue with the premium payment or needing the money, most experts suggest not surrendering a retirement plan due to the loss the individual will face. When the insured party chooses to surrender a retirement plan, they lose all benefits attached to the plan, including the life cover, if any. Readers must note that the surrender value is a term associated only with insurance plans that have a savings corpus creation feature. The plans that do not have a savings component such as term plans do not have a surrender value.
Minimum Guarantee of Pension Plans
Every pension plan needs to have a minimum guarantee. Each premium paid towards the insurance policy as well as the maturity benefits must have “on zero returns”, as instructed by IRDA. This should be no less than one percent of the premiums paid over the years.Though the minimum guarantee extends to all variable insurance plans, most of the companies offer various types of other pension plans that may offer better returns than the guaranteed plans. This, of course, varies from plan to plan and you should make sure that you pick ones that makes sense to you. What the minimum guarantee of pension plans offers you is awareness of the amount that you will definitely receive at the end of the policy period.
The participating pension plans are also called the traditional type of insurance plans, since the bonus in these products are similar to the reversionary bonuses of the standard insurance policies. In traditional plans, the insurance company offers the insured a bonus that is a percentage of the sum assured of their policy. This bonus is generally declared by the insurance company each year based on its performance in the previous year. The reversionary bonus is generally of the nature of simple interest where the bonus of the previous period does not get added to the sum assured. These bonuses declared in the tenure of the retirement policy get accumulated and the lump sum amount distributed to the insured party when the policy matures. The participating pension scheme in India allows for a planned approach to retirement planning.
The non-participating plans declare their bonus amounts at the time of the investor signing up for the plan. The insurance company has no discretion in non-participating pension plans and have to deliver on the amounts promised under the pension plan. Most of the best pension plans in India offer retirement benefits or bonuses that are pegged to certain indices. These may be the larger market index or smaller indices comprising of a few securities or government bonds. The non-participating plans offer more definite returns and make it easier for people to do their retirement planning.
The Public Provident Fund (PPF) scheme was launched by the Government of India in 1968 to create a pan India scheme for the citizens for their retirement planning. Any Indian above the age of 18 years can open the PPF account and deposit amounts from as low as Rs. 500 to Rs. 1.5 lakh per year. The PPF plan provides an interest on the amount deposited by the individual, which is compounded over its 15 years tenure to build up a large retirement corpus base for the individual. It has a lock-in period of 7 years and allows the investors to make withdrawals from the eight year onwards, though withdrawal of all the funds is allowed only after the maturity period. The plan can be renewed beyond the initial 15 years for additional periods of 5 years each.
Employees' Provident Fund (EPF) is a provident fund and insurance scheme administered by the Government of India for all employees of various organisations across the country. The provident fund requires employees of a member organisation to make a contribution of 12% of their income towards the fund along with an equal contribution by their employers. The Employees' Provident Fund Organisation that manages the fund invests most of the amounts received from employees in debt securities though the Government allows 5% to 15% to be invested in the stock market.
The Employees’ Pension Scheme (EPS) is a completely different scheme but which is interrelated with the Employees' Provident Fund, both being managed under the Employees’ Provident Funds and Miscellaneous Provisions Act of 1952. The Employees’ Provident Fund Organisation diverts 8.33% of the 12% salary contribution that the employers have made for their employees’ EPF into the employees’ EPS accounts. The 12% contribution that the employees have made from their own salary stays in the EPF.
The PradhanMantriAtal Pension Yojana or PM pension scheme for short is a unique retirement planning option introduced to bring the rural population under the ambit of pension schemes in India. The retirement planning solution allows any individual within the age group of 18 to 40 to contribute and get the necessary retirement benefits that were hitherto not available for them. The premium can be paid through monthly, quarterly and half yearly payment options.
The National Pension Scheme or the New Pension Scheme is a Government of India initiative to give policyholders a pension plan that will take care of them at old age. The retirement planning becomes easier with the new pension scheme as the pensioners receive a pension depending on their contribution towards the retirement plan during the accumulation stage. The voluntary new pension scheme in India is managed by the Pension Fund Regulatory & Development Authority that was set up by an act of the Indian Parliament in 2013.
The new pension scheme is a voluntary scheme that is open to all people in the age group of 18 to 60 years. It seeks to inculcate a discipline of savings among Indians to take care of their future. The new pension scheme has a minimum contribution of Rs. 500 per month or Rs. 6,000 per year. There is no limit on the maximum contribution, though. The Income Tax Act allows a deduction of only Rs. 50,000 under section 80CCD(1B).
The new pension scheme provides a range of benefits such as the option to select from a range of investment choices and to choose the pension fund manager of one’s choice. The new pension scheme also allows individuals to switch between different investment options and also between different fund managers. Let’s look at them in more detail to answer the question what is new pension scheme?
Choose the investment option you prefer
Investors can choose the investment option that suits them best under the new pension scheme. These options include equity, debt and government securities. The new pension scheme also has an automatic option where the funds are allocated according to their expectations and their age. This automatic option in the new pension scheme opts for riskier investments if the person is young and settles for non-riskier choices as the person advances in age over the years. For the sake of protection of the funds and the person’s future, the new pension scheme limits the exposure to equity to 50%.
Opt for the pension fund manager of your choice
The new pension scheme in India offers the investor a choice of different pension fund manager to oversee their investments.
Track your new pension scheme account with a unique number
The pension makes it easier for people to plan their retirement planning. Each individual who has opted for the new pension scheme is given a Permanent Retirement Account Number or PRAN, that lets him or her track their portfolio from wherever they are. This number is unique for each individual and stays the same for each subscriber throughout his or her life.
A choice of two accounts for more flexibility
The new pension scheme has a two-tier account structure that gives the investor more flexibility in planning their pension. The first account, also called the Tier I account is one from where the investor cannot make any withdrawal. All the money accumulated by the investors in the new pension scheme is placed in this account and then invested as per their investment choices. The Tier II account of the new pension scheme is one from where the investor can make voluntary withdrawals depending on their needs. The Tier II account of new pension schemes cannot exist without an active Tier I account.
One account to manage throughout your career
One of the biggest drawbacks of provident funds such as the EPF is that it is managed by various state divisions for different states. Going for a job in a new city in a different stage generally means changing the EPF organisation also. This is a difficult and very time-consuming process. All this is avoided by the new pension schemes. People can now change their jobs or relocate to any other part of the country without having to worry whether they will be able to access their provident fund contribution. They can easily access their new pension scheme account from their home and even manage their allocation without having to fill in innumerable forms or stand in long queues in PF offices.
New pension scheme available to non-salaried people
The new pension scheme offers small or large traders and businessmen who run the bulk of trade in India, the option to have a tax savings pension plan that will help them build a retirement corpus to take care of them when they retire from business.
Government-backed plan
The new pension scheme is managed by the Pension Fund Regulatory Development Authority (PFRDA), a body ratified by an act of Parliament. This means the new pension is as secure as people can expect it to be. The returns promised will be delivered and people do not have to worry whether they have been taken for a ride.
Tax Benefits
If you are trying to find the best retirement plan in India, it may be beneficial to understand the advantages of retirement planning and the retirement benefits each pension schemes in India provides. Though each pension scheme in India comes with its own specific retirement benefits, it makes sense to understand what the plans offer. For detailed information on the pension details, visit our website, PolicyBazaar.com, to understand to find the best retirement plan in India for you.
Regular Income after Retirement:The pension schemes in India offer you a guaranteed income that helps you to meet your living expenses. Looking at specific pension details offered by each plan will help you to better tweak your retirement planning and get the income you need in the future. Some of the insurance plans offer income for life, which ensures that the investor does not have to worry about the future. Since these life income plans offer better returns, a smart way to go for retirement planning is to opt for two plans, one each for the two heads of the family so that the proceeds from each plan can be used to meet their respective expenses.
Money When You Need It:Some of the plans offer lump sum payments that you can use to meet major expenses. The years leading up to retirement require a large expenditure for reasons, such as building a house or buying a flat. Some give the option for you to withdraw a large chunk of your corpus to meet such large expenses. Looking the policy details for the various plans will help you in retirement planning, as you will be able to pick the ones that suit your expected needs in the future.
Get the Tax Advantage: The investment you make in the retirement planning solutions will help you to save significantly on your tax. In fact, if you plan it well, you may even be able to lower your income tax slab to a lower one from the higher one in which you were earlier bracketed. Checking the policy details will also allow you to understand if you can take advantage of all the exemptions available under section 80C.
Insurance Cover: The retirement planning solutions people invest in will help provide them with an insurance cover, to protect their family’s income if the worst comes to pass. Most life insurance companies offer an insurance cover along with their retirement plans so that the spouse does not have to face any financial difficulty if the unfortunate happens.
Understand your needs: It is crucial that you understand how much you need to sustain yourself and your dependents after you retire. Make allowance for the inflation and thus, the increased expenses in the future.
Do some research: Read through the pension details in depth to understand what you are opting for. Some policies will explain in the pension details the type of income you are likely to receive. Look up your needs from your retirement planning calculations and pick the plans that make sense. The pension details in the policies will offer information on the periodicity of your income, how much is guaranteed, how much is dependent on market performance etc.
Understand the different products: There are a large number of retirement solutions in the market. Choose the ones that can give you the income you need. You can know this number from your retirement planning calculations.
Know about other retirement planning options: Do not stick to a retirement planning solution just because someone says so. One product that suits your friend may not suit you. Look up the provident funds, the retirement plans offered by the asset management companies and those offered by the insurance companies to get what you need.
Do not look at only the tax benefits: Though tax benefits matter, they form only a part of the overall picture. If you plan for your retirement, considering only the tax benefits, you may not be able to build up the corpus you need for your retirement. So, do your retirement planning calculations and invest the amount you know you should get a secure future.
Looking at the fluctuations in the equity market, Indians have now started opting for traditional pension plans as well as life insurance plans instead of ULIPs. As reported by Insurance Regulatory and Development Authority, people are now inclined more towards life insurance policies such as life insurance (67.8% of products in the market were purchased). Moreover, 18.6% pension plans were purchased in the financial year 2015-16. The sales of these products have increased as compared to year-on-year sale.
Sales of ULIPs have gone down, and its contribution to the insurance pool has slipped from 16.1% (2014-15) to 13.6% (2015-16). Out of Rs. 25 lakh crore invested by life insurance policies, only Rs. 3.4 lakh crore was from ULIPs. The traditional products have a major share in the current market. In this sector, life funds contributed Rs 16.9 lakh crore. Moreover, Rs 4.6 lakh crore was the contribution of the pension funds.
| Plan Name | Plan Features | Entry Age - Min/Max | Maturity Age - Min/Max | Policy Term(PT) & Policy Paying term(PPT) | Plan Benefits | Sum Assured in case of Death |
HDFC Life Click to Retire
|
|
18 - 65 Years | 45 - 75 Years | PT: 10, 15 - 35 Years PPT: Single Pay, 8, 10, 15 Years |
|
105% of the cumulative premiums paid. |
Birla Sun Life Wealth Secure
|
|
1 - 60 Years | NA | PT: whole life PPT: 5 to 30 Years |
*On maturity you get entire Fund Value that is the Total value of your investments. *Guarenteed additions in the form of additional units will be added every year post the 10th policy anniversary. *Death Benefit: In the unfortunate event the life insured dies while the policy is in effect, the nominee will get higher of Base Fund Valu or Base Sum Assured. |
For Age less than 45: Higher of 10 *Annual Premium or [(70 - entry age)/2]* Annual Premium for age equal to or greater than 45: Higher of 7 *Annual Premium or [(70 - entry age)/4]* Annual Premium |
Max Life FYPP
|
|
30 - 65 Years | 50 - 75 Years | PT: 10 - 75 minus entry age PPT: Single Pay, Regular Pay from 1 Year to Policy Term |
Maturity Benefit:
|
105% of the cumulative premiums paid (including top up premiums, if any) |
|
HDFC Life Click to Invest
|
|
0 - 65 Years | 18 - 75 Years | PT: 5 - 20 Years PPT: Single Pay, Limited: 5,7 and 10 years Regular: 5 to 20 Years |
Maturity Benefit: You will get the fund value of your investments & will have the option to take the fund value as periodic installments also. Death Benefit: Nominee will receive highest of Sum Assure or Fund Value or 105% of all premiums. |
Single Premium: 125% of single Premium Regular and Limited premium (age < 55): 10 * Annual Premium Regular and Limited premium (age > 55): 7 * Annual Premium |
Sbi Life e-Wealth
|
|
18 - 50 Years | 60 Years | PT: 10 - 20 Years PPT: Same as policy Term |
Maturity Benefit: On maturity the current Fund Value of investments made is paid as Lumpsum alternatively option to choose periodic installment options is also there. Death Benefit:Nominee will receive highest of Sum Assure or Fund Value or 105% of all premiums. |
10 * Annual premium |
What is a Pension Plan?
Pension Plan is a kind of insurance cum investment plan. In this plan, the insured pays regular premium to the insurance company to build up a corpus over time. On maturity (retirement), this corpus is paid back to the insurer in the form of regular income. However, in case the insured dies, the beneficiary will get the sum assured along with the bonuses.
What is annuity?
The regular payouts you get of your pension plan post retirement is called annuity. The annuity can be availed on a monthly/quarterly/half-yearly/yearly basis.
Why do I need pension plans?
Pension plan assures a regular income post retirement when you enter the no-more-paychecks phase of your life. Retirement is perhaps the best time to enjoy leisure activities. Pension plan funds your to-do-lists post retirement. A pension plan is a great way to be financially independent in your second innings.
I already have a provident fund account. Do I still need a pension plan?
Yes, you do. 'PF is simply not enough.' The ever growing inflation will make your PF amount look quite minuscule in the future. It will not suffice your future expenses. This becomes all the more important, as you become more vulnerable to health problems in your old age. A lone provident fund amount will utterly fail to financially support the healthcare needs.
How do I calculate the retirement corpus?
You can do that with a Retirement Calculator. You need to put in the following details in the calculator and it’ll sum up an ideal corpus.
What are the types of Pension Plans?
Pension Plans can be classified on various parameters. Here
On the basis of mode of premium payment
Deferred Annuity Pension Plan – The premium is paid regularly on a monthly/quarterly/annual basis. The annuity begins after a time period as specified by the policyholder in the annuity contract.
Immediate Annuity Pension Plan – A lump sum is paid as a one-time premium and the annuity begins almost immediately and continues for the policy term or throughout the insured’s life.
On the basis of nature of investment
ULIP Pension Plans – The pool of funds created by the premiums of the insured persons is invested both in debt instruments and equity instruments. Since it’s a market linked plan, the potential for returns is high.
Traditional Pension Plans - The pool of funds created by the premiums of the insured persons is invested only in debt instruments. The returns are steady but not substantial.
On the basis of tenure
Life annuity Pension Plan – The annuity is paid out to the insured until his/her death.
Fixed Term Annuity Pension Plan - The annuity is paid out to the insured until a fixed term (decided by the policyholder). The term could be quite earlier than the insured’s death.
How is a Pension Plan different from a Term Plan?
| Term Plan | Pension Plan | |
| Objective | To get a financial back up for your family in case of your demise | To get a financial back up for yourself and your family while still living. Though, like a term plan, it also provides a sum assured to your family in case of your demise |
| Maturity Benefit | Entire maturity amount is paid out at once and is tax exempted | 1/3rd maturity amount is paid out as lump sum and is tax exempted The rest 2/3rd is paid out as annuity and is taxable |
What are the tax benefits?
As per section 80CCC of the Income Tax act, the premiums paid out for the pension plan are subjected to a deduction of up to a maximum of Rs 10,000 on taxable income.
Which annuity retirement plan should I choose- Deferred annuity or immediate annuity?
Choosing the right annuity plan can bring major changes to your retirement income. Nowadays, many people consider buying annuity pension plans as the part of their retirement option. Annuity plans can be broadly categorized into immediate annuity plan and deferred annuity plan. To know which retirement plan you should choose it is important to learn more about these plans:
Deferred annuity plan= Under this plan, annuity phase is preceded by saving phase. Such types of policies are designed for people who don't require immediate pensions and have several years till the retirement age. It means they have enough time to invest and build a corpus. All premiums which are paid get invested till the maturity date.
Immediate annuity plan= In immediate annuity plan, if you are above 30 years, you can pay a lump sum amount and then start earning annuity benefits immediately after retirement. The payments can either be scheduled for a fixed tenure like 5, 10 or 15 years. Here, it is important to mention that immediate annuity plans are non-participating products and thus, they don't earn bonuses.
You can choose any of the above plans based on your risk appetite, fund requirement and current annual income.
What is accumulation phase?
It is the time period during which you regularly pay premiums to the insurance company to receive income post retirement in the form of pension.
Is there merit in guarantees for pension plans?
