Pension Plans

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A pension plan is a financial product where you build a fund through regular payments or lump sum. During retirement, this corpus provides steady payments, ensuring that individuals have a source of income after they stop working.

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What is a Pension Plan?

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.

Best Pension Plans in India 2024

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
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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

Best Pension Plans by Insurance Companies

Choosing the right pension plan is important as it helps you secure your financial future after retirement. Here are some of the best pension plans offered by insurance companies in India:

1Tata AIA Fortune Maxima:

A participating unit-linked pension plan that offers market-linked returns along with life insurance cover.

Features:

  • Choice of investment portfolios with varying risk-reward profiles.

  • Guaranteed bonus on death benefit.

  • Loyalty additions for long-term policyholders.

  • Flexibility to switch investment funds.

  • Partial withdrawals and surrender options are available.

Benefits: Potential for higher returns than traditional pension plans, life insurance cover, market participation, flexibility.

2Bajaj Allianz Life LongLife Goal:

A non-participating unit-linked pension plan with guaranteed life cover and annuity payout.

Features:

  • Choice of investment funds with varying risk-return profiles.

  • Guaranteed minimum maturity and death benefit.

  • Loyalty additions for long-term policyholders.

  • Flexibility to choose annuity start date and payout frequency.

  • Partial withdrawals and surrender options are available.

Benefits: Guaranteed returns on annuity payout, market participation, flexibility in payout options, life insurance cover.

3HDFC Life Click 2 Wealth:

A participating unit-linked pension plan with guaranteed life cover and loyalty additions.

Features:

  • Choice of investment funds with varying risk-return profiles.

  • Guaranteed death benefit with loyalty additions.

  • Guaranteed maturity benefit under certain conditions.

  • Flexible premium payment options.

  • Partial withdrawals and surrender options are available.

Benefits: Potential for higher returns with market participation, guaranteed benefits, life insurance cover, flexibility in premium payment.

4Max Life Online Savings Plan:

A participating traditional pension plan with guaranteed bonuses and annuity payouts.

Features:

  • Fixed premium payments throughout the policy term.

  • Guaranteed bonuses on sum assured on maturity.

  • Guaranteed annuity income after retirement.

  • Tax benefits under Section 80C and 10(10D) of the Income Tax Act.

Benefits: Guaranteed returns, predictable income after retirement, tax benefits, no market risks.

5Edelweiss Life Tokio Wealth Secure Plus:

A non-participating unit-linked pension plan with guaranteed life cover and maturity benefits.

Features:

  • Choice of investment funds with varying risk-return profiles.

  • Guaranteed death benefit and guaranteed maturity benefit.

  • Flexibility to choose annuity start date and payout frequency.

  • Partial withdrawals and surrender options are available.

Benefits: Guaranteed returns on maturity and death benefits, market participation, flexibility in payout options, life insurance cover.

6ICICI Prudential Signature:

A participating unit-linked pension plan with guaranteed life cover and loyalty additions.

Features:

  • Choice of investment funds with varying risk-return profiles.

  • Guaranteed death benefit with loyalty additions.

  • Flexible premium payment options and policy terms.

  • Option to add riders for additional benefits.

  • Partial withdrawals and surrender options are available.

Benefits: Potential for higher returns with market participation, guaranteed benefits, life insurance cover, flexibility in premium payment and policy terms.

7Tata AIA Life Guaranteed Monthly Income Plan:

Definition: A life insurance plan that provides guaranteed monthly income for a chosen period (10, 16, or 24 years) along with a maturity benefit at the end.

Features:

  • Guaranteed monthly income of 8.35% to 13.03% of total premiums paid.

  • Life cover benefits 11 times the annual premium.

  • Flexible policy and premium payment terms.

  • Optional riders for additional benefits.

Benefits:

  • Regular income stream for retirement or other needs.

  • Financial security for your loved ones in case of your death.

  • Tax benefits under Section 80C of the Income Tax Act.

8Bajaj Allianz Pension Guaranteed Pension Plan:

A non-linked retirement plan offering guaranteed monthly income for life after a chosen premium payment term (5, 10, or 15 years).

Features:

  • Guaranteed monthly income starting after the premium payment term.

  • Maturity benefit of 100% of sum assured.

  • Life cover benefit during the premium payment term.

  • Waiver of premium benefit on death.

Benefits:

  • Secure monthly income for life after retirement.

  • Financial protection for your family in case of your death.

  • Tax benefits under Section 80C of the Income Tax Act.

9Max Life Forever Young Pension Plan:

A unit-linked pension plan offering market-linked returns on your investment along with a guaranteed minimum income for life after retirement.

Features:

  • Guaranteed monthly income starting at age 60 or chosen retirement age.

  • Market-linked returns on your investment.

  • Flexibility to choose investment options.

  • Additional benefits like life cover and loyalty bonuses.

Benefits:

  • Potential for higher returns than guaranteed plans.

  • Guaranteed income for life after retirement.

  • Flexibility to manage your investment.

  • Tax benefits under Section 80C and Section 10(D) of the Income Tax Act.

10ICICI Pru Easy Retirement Plan:

A non-linked guaranteed pension plan offering monthly income for life after a chosen premium payment term (5, 10, or 15 years).

Features:

  • Guaranteed monthly income starting after the premium payment term.

  • Maturity benefit of 100% of sum assured.

  • Life cover benefit during the premium payment term.

  • Optional riders for additional benefits.

Benefits:

  • Secure monthly income for life after retirement.

  • Financial protection for your family in case of your death.

  • Tax benefits under Section 80C of the Income Tax Act.

11LIC Jeevan Akshay 7 Pension Plan:

An annuity plan from LIC offering guaranteed monthly income for 7 years after a lump sum payment.

Features:

  • Guaranteed monthly income for 7 years.

  • Return of purchase price on maturity.

  • Loan facility available.

  • Option to choose different income payment frequencies.

Benefits:

  • Regular income for a fixed period.

  • Lump sum return on investment.

  • Flexibility in income payment options.

  • Tax benefits under Section 80C of the Income Tax Act.

12LIC New Jeevan Shanti Pension Plan:

An annuity plan from LIC offering guaranteed monthly income for life after a lump sum payment.

Features:

  • Guaranteed monthly income for life.

  • Option to choose different income payment frequencies and deferral periods.

  • Return of purchase price on death.

  • Loan facility available.

Benefits:

  • Secure monthly income for life.

  • Flexibility in income payment options.

  • Financial protection for your family in case of your death.

  • Tax benefits under Section 80C of the Income Tax Act.

13Max Life Guaranteed Lifetime Income Pension Plan:

A non-linked traditional annuity plan guaranteeing a regular income stream after retirement.

Features:

  • Single or joint-life annuity: Choose payout for yourself or yourself and your spouse.

  • Immediate or deferred annuity: Start receiving income immediately or choose a future date.

  • Guaranteed lifetime income: Receive fixed annuity payments as long as you live.

  • Death benefit option: Choose a lump sum payout to the nominee if the policyholder dies before the annuity starts.

  • Flexible premium payment: Pay a single premium, regular premium, or a combination.

Benefits:

  • Financial security and stability in retirement.

  • Protection against market volatility.

  • Regular income flow to meet living expenses.

  • Peace of mind for you and your dependents.

14Aditya Birla Sun Life Empower Pension Plan:

Unit-linked annuity plan offering market-linked returns along with guaranteed minimum benefits.

Features:

  • Choice of investment funds: Invest in various equity, debt, or balanced funds based on risk appetite.

  • Guaranteed minimum income: Assures a minimum payout even if market returns are low.

  • Loyalty additions: Receive bonus payouts at specific durations.

  • Partial withdrawals: Access a portion of the corpus before maturity under specific conditions.

  • Death benefit: Lump sum payout to nominee if policyholder dies before maturity.

Benefits:

  • Potential for higher returns than traditional plans.

  • Protection against market downturns.

  • Flexibility to choose investment options.

  • Access to funds through partial withdrawals.

15IndiaFirst Life Guaranteed Annuity Plan:

Non-linked traditional annuity plan providing guaranteed income for life after a single premium payment.

Features:

  • Guaranteed lifetime income: Receive fixed annuity payments as long as you live.

  • Choice of annuity start date: Choose when to start receiving income, offering flexibility.

  • Return of purchase price: In case of death before the annuity starts, the nominee receives the invested amount.

  • Tax benefits: Enjoy tax deductions on premiums paid under Section 80C of the Income Tax Act.

Benefits:

  • Predictable income stream for retirement.

  • Protection against outliving your savings.

  • Tax advantages make it cost-effective.

16Kotak Premier Pension Plan:

Non-linked traditional annuity plan offering guaranteed income with the option to switch between immediate and deferred annuity.

Features:

  • Immediate or deferred annuity: Choose to receive income immediately or defer it for later.

  • Single or joint life annuity: Opt for payout for yourself or yourself and spouse.

  • Guaranteed lifetime income: Receive fixed annuity payments as long as you live.

  • Return of purchase price: In case of death before annuity starts, nominee receives the invested amount.

  • Loyalty additions: Receive bonus payouts at specific durations.

Benefits:

  • Flexibility to choose annuity timing and type.

  • Financial security throughout your retirement.

  • Protection against market fluctuations.

  • Potential for additional income through loyalty bonuses.

17SBI Life Saral Retirement Saver:

Non-linked traditional annuity plan offering guaranteed income after a single premium payment, with various payout options.

Features:

  • Guaranteed lifetime income: Receive fixed annuity payments for life.

  • Multiple payout options: Choose monthly, quarterly, half-yearly, or yearly income distribution.

  • Return of purchase price: In case of death before annuity starts, nominee receives the invested amount.

  • Lump sum death benefit: Option to choose a lump sum payout to nominee in addition to return of purchase price.

  • Tax benefits: Enjoy tax deductions on premiums paid under Section 80C of Income Tax Act.

Benefits:

  • Predictable income stream with flexible payout options.

  • Protection against outliving your savings.

  • Tax advantages make it cost-effective.

  • Option for additional lump sum benefit to dependents.

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Types of Pension Plans in India

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.

Deferred Annuity
Immediate Annuity
Annuity Certain
Defined Contribution
With & Without Cover Pension Plan
Guaranteed Period Annuity
National Pension Scheme (NPS)
Defined Benefit
Life Annuity
Pension Funds
Whole Life ULIP's

Let's explore these pension funds in detail:

Pension Plans Description
Deferred Annuity
  • Allows you to accumulate a corpus through regular or single premium payments Pension is provided after completion of the policy tenure
  • Offers tax exemption
  • 1/3rd of the corpus is tax-free on withdrawal, while 2/3rd is taxable
  • Amount invested in Deferred Pension Plan is locked and cannot be withdrawn for emergencies
  • Suitable for investors with regular or lump-sum payments.
Immediate Annuity
  • Provides instant pension upon payment of a lump-sum amount
  • Offers a range of annuity options to choose from
  • Premiums paid towards immediate annuity scheme are tax-exempted as per Income Tax Act, 1961
  • Policy nominee receives the money in case of the insured person's demise during the policy's tenure.
Annuity Certain
  • Annuitant receives annuity payments for a specific number of years
  • Annuitant chooses the period of payment
  • If the annuitant passes away before receiving all complete payments, the annuity is paid to the policy's beneficiary.
Guaranteed Period Annuity
  • Offers annuity payments to the policyholder for specified periods, such as 5 years, 10 years, 15 years, or 20 years, regardless of whether the insured survives that duration.
Life Annuity
  • Provides pension payments to the annuitant until their death
  • If the option of 'with the spouse' is chosen under the life annuity plan, the pension amount is transferred to the policyholder's spouse in the event of the policyholder's death.
National Pension Scheme (NPS)
  • Introduced by the Government of India for securing the individual's financial future after retirement.
  • Money in the National Pension Scheme is invested in equity and debt funds to generate returns on investment.
  • 60% of the amount can be withdrawn at retirement, while the remaining 40% is used to purchase an annuity.
  • Maturity proceeds are not tax-free.
  • You can use the NPS Calculator to easily calculate your potential returns from the scheme.
Pension Funds
  • Long-term pension scheme regulated by the Government under the Pension Fund Regulatory and Development Authority (PFRDA).
  • Offers better returns upon maturity compared to other plans.
  • Remains active for a specified period.
  • Policyholders can withdraw their annuity sum during the aggregation stage, providing financial security in emergencies.
  • Reduces reliance on banks for loans in such situations.
Whole Life ULIPs
  • Money stays invested for the entire life of the insured.
  • Partial withdrawals allowed upon retirement, providing tax-free income.
  • Additional withdrawals can be made as needed.
Defined Benefit
  • Guarantees a specific retirement income for life
  • Calculation under Defined Benefit Plans are based on earnings and years of service with the employer
Defined Contribution
  • Retirement income not guaranteed, but contributions are
  • Both you and your employer can contribute
  • Your contributions determine your retirement savings
  • Retirement amount depends on contributions and investment returns.
HDFC Life Insurance
  • Offers specialized pension plans in India
  • Provides customized coverage and benefits
  • Affordable costs for complete protection
Pension Plans Available in USA
SIMPLE IRA
  • Savings Incentive Match Plan for Employees (SIMPLE) Individual Retirement Account (IRA) or Simple IRA
  • Designed for small businesses with 100 or fewer employees
  • Easy and suitable for employees of small businesses.
SEP-IRA
  • Simplified Employee Pension (SEP) Individual Retirement Account (IRA)
  • Opted by self-employed individuals or employers
  • Tax deductions applicable
  • Contributions made to employees based on eligibility.
Roth IRA
  • Special Individual Retirement Account (IRA) plan
  • Under Roth IRA taxes are paid on deposited money
  • Future withdrawals are tax-free
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Benefits of Pension Plans

Buying a pension plan online comes with a lot of benefits. Take a look at them below:

Annuity
Annuity
An annuity is the fixed amount an investor will receive each year throughout their life tenure. annuity can be immediate or deferred depending upon the nature.
Sum Assured
Sum Assured
The sum assured is a definite amount offered to the nominee of the plan at the end of the plan tenure. It is generally 10X the annual premium or the fund value of the policy.
Vesting Age
Vesting Age
The vesting age is the age when the investors starts receiving the monthly pension from their pension plan.
Payment Period
Payment Period
The payment period is when the investor starts receiving the payments post-retirement.
Accumulation Period
Accumulation Period
The accumulation period is the complete time period wherein the investor pays regular premium towards their policy or plan.
Surrender Value
Surrender Value
The surrender value of pension plans is the amount the insurance company will pay the individual if they surrender the plan before its maturity.

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Eligibility Criteria

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.

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What is Retirement Planning?

Retirement planning is the process of preparing your finances for the retirement stage of your life. It involves setting goals, estimating your income needs, and taking steps to accumulate and manage funds to support those needs throughout your retirement years.

It is important 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.

Advantages of Retirement Plans in India

Retirement plans in India offer financial security with systematic savings, tax advantages, and customisable investment options. Government and employer support enhance accessibility, ensuring a comfortable and stress-free retired life. Let us learn some basic advantages offered by pension plans in India:

Benefits of Pension PlanBenefits of Pension Plan

  • 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.

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How Much Should You Save for Retirement?

Save 15% of your income annually from your 20s for retirement. Consider lifestyle, lifespan, and inflation. Diversify investments, review regularly, and seek professional advice. Early and consistent saving ensures a comfortable retirement. Here are some other 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.

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How Do Pension Plans Work?
How does Pension Plan work
Step 1
You make regular contributions during your working years
How does Pension Plan work
Step 2
Compound interest & market returns help your money grow over time
How does Pension Plan work
Step 3
You stay invested for a certain period to be eligible for pension benefits
How does Pension Plan work
Step 4
At your retirement age, start receiving a monthly pension
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Why Do You Need to Start Retirement Planning Today?

Start retirement planning now for a secure future. It ensures financial independence, capitalises on compounding, brings peace of mind, and allows manageable contributions. Prioritise your golden years—initiate planning today for a worry-free tomorrow.

  • 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.

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Lifelong pension rate for you and your spouse Lifelong pension rate for you and your spouse

What are the Steps to Buy a Retirement Plan?

To buy a retirement plan, assess financial goals. Research plans and compare them based on risk, benefits, costs, fees and time. Complete paperwork, submit documents, monitor and review the plan as needed for changing circumstances.

  • Decide 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 and 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.

Conclusion

Pension Plans play an important role in securing financial stability during retirement. With a diverse range of options, individuals can tailor their choices to meet specific needs, ensuring a comfortable and worry-free post-retirement life. Planning ahead and selecting the right pension plan are essential steps towards a secure and fulfilling retirement journey.

FAQ's

  • What is the Employees' Provident Fund or Employees' Pension Scheme?

    The Employees' Provident Fund (EPF) is a savings scheme in which both employees and employers contribute a certain percentage of the employee's salary to provide financial security and retirement benefits.
  • What is a Participating and Non-Participating Pension Plan?

    A participating pension plan is a retirement plan where the employer shares investment risk and rewards with employees. It offers potential bonuses or increased benefits based on plan performance. In contrast, a non-participating pension plan does not involve sharing investment risk or rewards and provides fixed benefits determined by predetermined factors such as years of service or salary.
  • Why do I need pension plans?

    A 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. A 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 relatively 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 fail to support the healthcare needs financially.
  • How do I calculate the retirement corpus?

    You can do that with a Pension Calculator. You need to put the following details in the calculator, which will summarize an ideal corpus. Present cost of living (monthly expenses) Inflation rate Retirement age Number of years you expect to live post-retirement.
  • How is a Pension Plan different from a Term Plan?

    Term Plan Pension Plan
    Objective To get a financial backup for your family in case of your demise To get a financial backup 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 The entire maturity amount is paid out at once and is tax exempted 1/3rd maturity amount is paid out as a lump sum and is tax exempted. The rest 2/3rd is paid out as annuity and is taxable
  • What are the tax benefits of Pension Plans?

    As per section 80CCC of the Income Tax act, the premiums paid out for the pension plan are subject to a deduction of up to a maximum of Rs 10,000 on taxable income.
  • What does a pension plan do?

    Pension plan is a beneficial investment product for individuals who are willing to keep aside a pool of money at the earning age to reap the benefits after they retire.
  • How can I get Rs. 50,000 pension per month?

    One can easily earn Rs. 50,000 per month through the NPS (National Pension Scheme). As per the scheme, a minimum of 40% (which can go up to 100%) of the total corpus needs to be invested in the purchase of an annuity that will provide pension returns after retirement. The remaining 40% (or the rest percentage not invested in the annuity) can be withdrawn tax-free as per the requirement of the individual.
  • How do I start a retirement plan?

    Simple steps to be followed to start a retirement plan in India are:
    • Start saving
    • Know your retirement goals
    • Have a detailed knowledge of your retirement plan
    • Never use your retirement savings before retirement
    • Plan carefully before investing
  • What pension plan is best?

    Some of the best pension plans one can opt for are as follows:
    • Tata AIA Fortune Maxima
    • HDFC Life Click 2 Wealth
    • Bajaj Allianz Life LongLife Goal
    • Max Life Online Savings Plan
  • What is the maximum monthly pension?

    As per the Government of India, the maximum limit of monthly pension is 50% of the top paid, that is, Rs. 1,25,000 per month currently. Pension is payable till the date of death of the pension holder.
  • How much money is a good pension?

    As per some experts, 10 times the employees working life salary is a decent amount of money one can accumulate at the age of their retirement.

*All savings are provided by the insurer as per the IRDAI approved insurance plan.
*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.
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Average Rating
(Based on 167 Reviews)
Life Long Pension
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Pension plans articles

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Sevarth Mahakosh
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How To Get a Monthly Pension of Rs 10,000?
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Pension Plans Insurance Reviews & Ratings
4.6 / 5 (Based on 167 Reviews)
(Showing Newest 10 reviews)
Nisha
Ahmedabad, March 01, 2024
Max Life Online Savings Plan Easy Process
Opting for Max Life Online Savings Plan was easy with PolicyBazaar. Satisfied with the service
Karthik
Hyderabad, February 28, 2024
Smooth Experience with HDFC Life
HDFC Life Click Wealth via PolicyBazaar was a smooth experience. Recommend it
Neha
Kota, February 26, 2024
LIC Jeevan Akshay Pension Plan Smooth Process
Smooth process with LIC Jeevan Akshay Pension Plan via PolicyBazaar. Happy with the support
Priya
Bangalore, February 26, 2024
Seamless Process with Bajaj Allianz
Bajaj Allianz Life LongLife Goal was my choice and PolicyBazaar made the process seamless. Impressed
Raj
Delhi, February 22, 2024
Hassle free Investment
Investing in Tata AIA Fortune Maxima through PolicyBazaar was hassle free. Great experience
Sameer
Lucknow, October 31, 2023
Efficient Service from PolicyBazaar
I experienced efficient service from PolicyBazaar while investing in HDFC Life Click two Wealth. They made the process smooth and hassle free. Highly satisfied.
Meenal
Goa, October 31, 2023
PolicyBazaar Where Customer Service Shines
PolicyBazaars customer service is exceptional. They provided invaluable assistance while I invested in ICICI Prudential Signature. Kudos to the team.
Alok
Indore, October 30, 2023
Seamless Experience with PolicyBazaar
I had a seamless experience with PolicyBazaar while investing in Max Life Online Savings Plan. Their service made the process easy and efficient. Highly recommended.
Sanjay
Delhi, October 28, 2023
PolicyBazaar A Beacon of Customer Service Excellence
PolicyBazaars customer service is truly impressive. They made the entire investment process a breeze. Kudos to the team for their dedication and professionalism.
Priyanka
Srinagar, October 27, 2023
LIC Jeevan Akshay seven Pension Plan A Plan for Immediate Security
LIC Jeevan Akshay seven Pension Plan offers immediate security for retirement. The plan features are noteworthy. PolicyBazaars service was excellent.
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