Pension plans are designed to help individuals accumulate funds throughout their working years to support their retirement income needs. They work by allowing individuals to contribute a portion of their earnings towards the plan during their working years. These contributions are invested and grow over time, generating returns and building a pool of funds.
Peaceful Post-Retirement Life
Tax Free Regular Income
Wealth Generation to beat Inflation
A pension plan is a type of investment plan that helps individuals invest for their future retirement needs. It allows you to accumulate a pool of funds by making either a lump sum investment or regular premium payments over a period of time. These plans ensure that you have a secure future by providing you with a guaranteed steady income stream during your retirement years.
By contributing to a pension plan throughout your working years, you can build a substantial corpus that will support your financial needs when you are no longer actively employed.
Here are some of the best pension plans in India available in the market.
|Pension Plans in India||Entry Age||Maturity Age||Policy Term||Tax Benefit||Minimum amount to Invest (yearly)|
|Tata AIA Fortune Maxima||18-60 years||100 years||100 minus issue age||Offers Tax benefits u/s 80C and 10 (10D) of the Income Tax Act, 1961||Rs. 18,000|
|Bajaj Allianz Life LongLife Goal||18- 65 years||99 years of age||99 years- Entry age||Offers Tax benefits u/s 80C and 10 (10D) of the Income Tax Act, 1961||Rs. 25,000|
|HDFC Life Click 2 Wealth||18-60 years||18-75 years of age||20-64 years||Offers Tax benefits u/s 80C and 10 (10D) of the Income Tax Act, 1961||Rs. 12,000|
|Max Life Online Savings Plan||18-60 years||18-45 years||5 to 67 years||Offers Tax benefits u/s 80C and 10 (10D) of the Income Tax Act, 1961||Rs. 12,000|
|Edelweiss Life Tokio Wealth Secure Plus||18-60 years||18 to 70 years||5-25 years||Offers Tax benefits u/s 80C and 10 (10D) of the Income Tax Act, 1961||Rs. 24,000|
|ICICI Prudential Signature||18-75 years||99 years||10-30 years||Offers Tax benefits u/s 80C and 10 (10D) of the Income Tax Act, 1961||Rs. 24,000|
|Tata AIA Life Guaranteed Monthly Income Plan||6-60 years of age||68 years of age||5, 8, 12 years||Offers tax benefit U/S 80C & 10(10D) of IT Act||Rs. 36,000|
|Bajaj Allianz Pension Guaranteed Pension Plan||0-100 years of age||N/A||Lifetime||Offers tax benefit U/S 80C & 10(10D) of IT Act||Rs. 25,000|
|Max Life Forever Young Pension Plan||30 years-65 years||50-75 years of age||10 years to 75 years-Entry age||Offers tax benefit U/S 80C of IT Act||Rs. 25,000|
|ICICI Pru Easy Retirement Plan||18-70 years of age||30-80 years of age||10, 15, 20, 25, 30 years||Offers tax benefit U/S 80C & 10(10D) of IT Act||Rs. 48,000|
|LIC Jeevan Akshay 7 Pension Plan||25-100 years of age||N/A||Lifetime||Offers tax Benefit U/S 80C of IT Act||Rs. 1 lakh|
|LIC New Jeevan Shanti Pension Plan||30-79 years of age||31-80 years of age||--||Offers tax Benefit U/S 80C of IT Act||Rs. 1.5 lakhs|
|Max Life Guaranteed Lifetime Income Pension Plan||0-85 years of age||26-90 years of age||N/A||Offers tax benefit U/S 80C IT Act||Rs. 25,000|
|Aditya Birla Sun Life Empower Pension Plan||25-70 years of age||80 years of age||5-30 years||Offers tax benefit U/S 80C of IT Act||Rs. 18,000|
|IndiaFirst Life Guaranteed Annuity Plan||40-80 years of age||N/A||Lifetime||Offers tax benefit U/S 80C IT Act||Rs. 1 lakh|
|Kotak Premier Pension Plan||30- 60 years of age||45-70 years of age||10-30 years||Offers tax benefit U/S 80C of IT Act.||Rs. 1 lakh|
|SBI Life Saral Retirement Saver||18-65 years of age||40-70 years of age||5, 10- 40 years||Offers tax benefit U/S 80C of IT Act||Rs. 1 lakh|
Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer. The tax benefit is subject to changes in tax laws. *Standard T&C Apply
A wide range of pension plans in India are available to cater to the insurance seekers' requirements. These plans have multiple classifications based on the plan structure and benefits.
Let's explore these pension funds in detail:
|Guaranteed Period Annuity||
|National Pension Scheme (NPS)||
|Whole Life ULIPs||
|HDFC Life Insurance||
|Pension Plans Available in USA|
Buying a pension plan online comes with a lot of benefits. Take a look at them below:
The three main eligibility criteria for purchasing retirement plans in India are:
Entry Age: Typically, the minimum entry age for a Pension Plan is 18 years, but some plans require an entry age of 30 years. Maximum entry age is usually around 70 years.
Premium: Policyholders must pay a minimum premium for their Pension Plan, as the pension amount is based on the premium paid.
Vesting Age: The age at which a policyholder begins receiving their pension is known as the vesting age, which is usually set at 40 years but can vary depending on the insurance provider.
With the rapidly changing economic landscape in the world, it has become vital to plan for a secure and comfortable retirement. It is essential to have a well-thought-out retirement plan that considers factors such as inflation, healthcare costs, and changing lifestyle needs.
It is crucial to start planning for retirement as early as possible to accumulate enough funds for future expenses and maintain a standard of living during retirement years.
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
Let us learn some basic advantages offered by pension plans in India:
Retirement plans assure long-term savings, regardless of the premium payment mode.
Pension Plan in India focus on creating an annuity that can generate steady cash flow after retirement.
Retirement plans offer guaranteed income to meet day-to-day expenses.
They offer better returns and are a smart way to plan for retirement.
Retirement plans provide insurance coverage to financially protect the policyholder's family.
Pension plans offer tax benefits under Offers tax benefit U/S 80C & 10(10D) of Income Tax Act.
Retirement plans in India offer different options for individuals based on their needs and preferences.
Riders, such as critical illness or disability due to an accident can enhance the coverage of retirement plans.
Here are some key points to consider:
Determine your retirement goals: Assess the lifestyle you want to maintain during retirement. Consider expenses like housing, healthcare, travel, and hobbies.
Estimate retirement duration: Calculate the number of years you expect to live after retirement. It's wise to plan for a longer retirement to ensure you have sufficient funds.
Consider inflation: Account for the impact of inflation on your retirement savings. Inflation erodes the purchasing power of money over time, so your savings need to keep pace with it.
Calculate retirement expenses: Estimate your future expenses, keeping in mind that some costs, such as healthcare, may increase significantly as you age.
Determine expected income sources: Identify potential sources of income during retirement, such as pensions, annuities, and government schemes. This will help determine how much additional savings you need.
Seek professional guidance to create a retirement plan tailored to your specific needs and financial situation. An advisor can help you calculate the ideal savings amount.
Starting retirement planning early is vital due to several reasons:
Time for Compound Interest: The power of compound interest can significantly boost your retirement savings. By investing early, your money has more time to grow, and the returns on your investments can compound over the years, increasing your overall savings.
Inflation: Inflation erodes the purchasing power of money over time. By planning for retirement early, you can account for inflation and make sure your savings are sufficient to maintain your desired lifestyle.
Rising Life Expectancy: With advancements in healthcare and improved living conditions, life expectancies are increasing. Planning early allows you to prepare for a longer retirement period, ensuring you have enough funds to sustain yourself.
Flexibility and Options: Early retirement planning provides more flexibility in choosing investment options and strategies. You can take advantage of long-term investment vehicles, such as stocks or mutual funds, which generally offer higher returns over time.
Unexpected Events: Life is unpredictable, and unforeseen circumstances such as medical emergencies or job loss can impact your retirement plans. By starting early, you can build an emergency fund and have a safety net in place to handle any unexpected expenses.
To buy a retirement plan, follow these steps:
Assess Your Retirement Needs: Determine your goals, lifestyle, and estimated expenses based on factors like age and financial obligations.
Research and Compare Plans: Explore different retirement plans, compare features, benefits, costs, investment options, and payout structures.
Review Terms and Conditions: Thoroughly examine the plan's terms, including vesting period, contribution limits, withdrawal restrictions, fees, and charges.
Monitor and Review: Regularly track your plan's performance, stay informed about any changes, and adjust contributions or investment strategy when needed.
*All savings are provided by the insurer as per the IRDAI approved
*Tax benefit is subject to changes in tax laws. Standard T&C Apply
^Tax benefit are for Investments made up to Rs.2.5 L/ yr.
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
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