Best Pension or Retirement Plans for NRIs 2018-19

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Retirement Planning for NRIs

Most NRIs plan to build a corpus of funds of funds for their retirement when returning back to India in the later stage of their lives. If you are also living overseas and wish to enjoy a similar lifestyle and dignity even after retirement it is required that you plan in advance. How about putting your hard-earned money in one of the Best Pension Plans for NRI in India that will help you meet your post-retirement financial needs?

There are a number of financial instruments to choose from based on your goals, age, and financial desires.  Various pension plans are offered by top insurance companies India for NRIs that promise higher returns and financial security in the golden years of life.

SBI, LIC, Bajaj Allianz, and various other insurance firms offer pension plans for overseas Indians. Most of the insurance companies offer comprehensive pension plans that are designed specially to solve the purpose of Retirement planning for NRIs.

Best Pension Plans for NRI’s in India

Plan Name

Minimum Age

Maximum Age

Policy Term/Annuity Options  

Annuity to Spouse

Tax Benefits

1.       Bajaj Allianz Life Pension Guarantee Plan

37 years

80 years

Life Annuity and 5,10,15, 20 years

50 and 100 percent

Applicable

2.       LIC Jeevan Nidhi Plan

20 years

60 years

Life Annuity and 5,10,15, 20 years and thereafter

50 percent

U/S 80CCC

3.       National Pension Scheme for NRIs

18 years

60 years

-

-

Up to 1.5 lacs

4.       LIC Jeevan Akshay

30 years

65 years

Life Annuity and 5,10,15, 20 years and thereafter

50 and 100 percent

NA

5.       Aviva Wealth Builder Plan

5 years

50 years

Policy Term: 13, 15 & 17 years

NA

Applicable

 

Why do you need to invest in retirement/pension plans?

Retirement plans are designed to offer you a sought-after life even when your source of income stops.  You can save a part of your saving in pension plans to avail the benefits. To ensure a regular income, you opt for pension benefits at monthly intervals by purchasing an annuity plan.

But utilizing our earning over a period of time, you can create a fund for yourself that you can withdraw in parts or as a whole during your retirement years. Moreover, these plans serve the dual purpose of investment and financial protection in the golden years of your life.

Here’s a Quick Rundown of the Best Pension Plans for NRI

Bajaj Allianz Life Pension Guarantee Plan

This plan is designed to provide you a steady income post retirement. The first annuity will be paid in the first month, 3rd month, sixth month or 1 year after policy inception based on the payment mode that you choose – every month, every 3 months, lievery six months or annually respectively.

The minimum age criterion to buy this plan is 37 years and the maximum age limit is 80 years. This plan provides immediate annuity options like an annuity for lifetime return of the purchase price upon the death of the annuitant, and an annuity for a specific period of 5, 10, 15, 20 years till lifetime. There is another option i.e. Coverage to the spouse along with 50 percent of annuity to the spouse in case of death of the annuitant , 100 percent annuity to the spouse in the event of death of the annuitant and 100 percent annuity to the spouse with return of purchase price in case of death of the last survivor.

LIC Jeevan Nidhi Plan

It is one of the most popular and best pension plans for NRIs as it offers five different plan variants to choose from. You can choose to get the annuity for a lifetime, or choose to get it for a fixed interval of 5, 10, 15, 20 years irrespective of the survival period.
You can also opt to get a return of the purchase price in case of death, and payment of 50 percent of annuity to the spouse in case of death of the policyholder.

Moreover, you can avail 3 percent increment of annuity every year and opt for various other insurance benefits available with this plan.

National Pension Scheme for NRIs

Anyone between the age group of 18 to 60 years of age can put their money in the government launched New Pension Scheme. The minimum subscription under this scheme is INR 6,000 on yearly basis. And 50% of investment money is allocated to equities. National pension scheme gets matured at the age of 60 years. However, you can withdraw the corpus amount if it is lesser than INR 2 lakhs.

LIC Jeevan Akshay

To avail the benefits of this plan, you just need to pay the amount in lump sum. It is an Immediate Annuity plan that offers annuity payments of a specific amount to the annuitant throughout the lifetime.  The minimum entry age to buy this plan is 30 years and the maximum entry age is 85 years. The minimum purchase price is INR 1lakh and INR 1.5 lacs for online sale.  It offers annuity for a lifetime, and other features include payment of annuity of 5, 10, 15, 20 year and thereafter till the time you are alive, increment in the annuity at the rate of 3 percent per annum, payment of 50 and 100 percent of annuity to the spouse, and return of purchase price in case of death of the policyholder.

Aviva Wealth Builder Plan

This plan is designed for people who have a certain set of milestones and aspirations to achieve in their life. It can be anything such as buying a dream house, a child’s marriage, education and comfortable years of retirement. Paying for such events can put you in  financial shock and if you plan for it in advance to fulfill your dreams

This plan is specially designed to help you fulfill your dreams. The premium amount that you pay gets doubled at maturity. Above all, it also ensures protection to your family especially when you are not around.

Things to Consider While Buying Best Pension Plans for NRI

Consider the usual returns that a retirement plan offers. Also, take into consideration the returns offered by the plan after 5 to 10 years, then compare the various plans and their benefits and select accordingly.

Remember to check the repatriation clause in a pension plan. Last but not least, focus on your needs after retirement and refrain from withdrawing your focus to other needs.

In a Nutshell

By now you must have realized the importance of systematic and regular investment in any of the above mentioned NRI retirement plans offered by the top insurance companies in India.

If presently you are working and your retirement is at least 10 years away, you must consider investing in any of the retirement plans offering you a higher return over a long term. With easy online purchase that process has been simplified further. However, it is recommended to compare different pension plans and then choose the one that meets most of your requirements.