Top Pension Plans in India

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Pension plans are one of the most sought-after investment options that have gained huge popularity over the period. Pension plans help the individuals to secure their retirement days financially by saving a considerable amount regularly. With the help of pension plans, an individual can mitigate those unexpected expenses arising out of an emergency after retirement. Be it a health emergency or to sponsor an international trip, a best pension plan always comes as a boon to retirees. Also, it keeps the flow of income intact even after your retirement.

Having said that below are the best pension plans in India you can consider parking your money and securing your rainy days. Here you go:

Top Pension Plans in India 2020

Here's a list of the best pension plans in India you might want to go through:

  • Aditya Birla Sun life Empower Pension Plan
  • Bajaj Allianz Pension Plan Guarantee
  • Bajaj Allianz Retire Rich Pension Plan
  • HDFC Life Click 2 Retire
  • HDFC Life Assured Pension Plan
  • ICICI Pru Easy Retirement
  • LIC Jeevan Akshay 6 Pension Plan
  • LIC Jeevan Nidhi Pension Plan
  • Max Life Forever Young Pension Plan
  • Max Life Guaranteed Lifetime Income Pension Plan
  • Reliance Immediate Annuity Pension Plan
  • Reliance Smart Pension Plan
  • SBI Life Saral Pension Plan

Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer. Tax benefit is subject to changes in tax laws. *Standard T&C Apply

Pension Plans in India

Entry Age

Policy Term

Tax Benefit

Annuity Payable

Aditya Birla Sun life Empower Pension Plan

25-70 years

5-30 years

Offers tax benefit U/S 80C IT Act

Minimum-Rs.12,000 annuallyMaximum- No upper limit

Bajaj Allianz Pension Plan Guarantee

37-80 years

N/A

Offers tax benefit U/S 80C &10(10D) of IT Act

Minimum-Rs.12,000 annuallyMaximum- No upper limit

Bajaj Allianz Retire Rich Pension Plan

30 years- 73 years

7 years – 30 years

Offers tax benefit U/S 80C of IT Act

 N/A

HDFC Life Click 2 Retire

18-65 years

10,15-35 years

Offers tax benefit U/S 80C of IT Act

 N/A

HDFC  Life Assured Pension Plan

18-45 years

N/A

Offers tax benefit U/S 80C IT Act

N/A

ICICI Pru Easy Retirement

18-70 years

10-30 years

Offers tax benefit U/S 80C &10(10D) of IT Act

N/A

LIC Jeevan Akshay 6 Pension Plan

30 - 85 years

N/A

Offers tax Benefit U/S 80C of IT Act

 It depends on the purchase price and entry age. 

LIC Jeevan Nidhi Pension Plan

---

5-35 years

Offers tax benefit U/S 80C of IT Act.

Regular premium payment- Rs. 1 LakhsSingle-Premium- 1.5 lakhs

Max Life Forever Young Pension Plan

30 years-65 years

20 years

Offers tax benefit U/S 80C of IT Act

N/A

Max Life Guaranteed Lifetime Income Pension Plan

Immediate Annuity- 0-80 yearsDeferred Annuity- 45- 80 years

N/A

Offers tax benefit U/S 80C IT Act

N/A

Reliance Immediate Annuity Pension Plan

20 years- 80 years

N/A

Offers tax benefit U/S 80C of IT Act

N/A

Reliance Smart Pension Plan

18-65 years

Single premium-10-30 yearsRegular & limited premium-15-30 years

Offers tax benefit U/S 80C & 10(10D) of IT Act

N/A

SBI Life Saral Pension Plan

18-65 years

Regular Premium-10-40 yearsSingle Premium-5-30 years

Offers tax benefit U/S 80C of IT Act

 Rs.1 lakhNo upper limit

Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer. Tax benefit is subject to changes in tax laws. *Standard T&C Apply

Helpful Resource: Types of Annuity

1. Aditya Birla Sun Life Empower Pension Plan:

This is a unit-linked non-participating pension plan, which helps the policyholder to do savings so that they can create a financial corpus for post-retirement. As it is a unit-linked insurance policy, a part of the premium is invested towards market securities like equity and debt to create high returns on investment. The following are benefits offered by the policy and some of the salient features of the policy.

Benefits of Aditya Birla Sun Life Empower Pension Plan

  • The insured can choose from 3 different annuity pay-out options i.e.
    • Assured Option- The insured enjoys a guaranteed benefit on vesting
    • Self-managed option- the insured has the option to choose from various funds as per their risk appetite, with the fund value of the policy payable on vesting.
  • Along with the benefit of investment returns, the plan also provides insurance coverage to the family of the insured.
  • Tax benefits can be availed under Section 80C of the Income Tax Act.

Features of Aditya Birla Sun Life Empower Pension Plan

  • The entry age of the policy ranges from a minimum of 25 years to a maximum of 70 years.
  • As it is a deferred annuity plan, the accumulation period of the policy ranges from a minimum of 5 years to a maximum of 30 years.
  • The maximum vesting age of the policy is 80 years.
  • The policy offers regular pay premium paying options.

2. Bajaj Allianz Pension Guarantee:

This one of the top pension plans assures guaranteed regular income to you after your retirement. The plan also offers a range of immediate annuity to you as well. As a unit linked pension plan, it comes with single premium payment option. The immediate annuity plan options offered under the policy are:

  • Life annuity
  • Life annuity with return of purchase price
  • Fixed annuity for the period of 5, 10,15 & 20 years and life after that.
  • Joint life last Survivor with 50% annuity to spouse.
  • Joint life last survivor with 100% of the premium to the spouse
  • Joint life with return of purchase price on the demise of the last survivor (100% of pension to the spouse)

Benefits of Bajaj Allianz Pension Guarantee

  • Under this plan, you get six annuity options to choose from.
  • The plan also provides the option to extend annuity to your spouse.
  • The annuitant receives tax benefits according to the applicable tax law.
  • The annuity is paid to the annuitant as long as he/she survives.



Features of Bajaj Allianz Pension Guarantee Plan

  • The minimum entry age for this plan is 37 years and the maximum age is 80 years.
  • Minimum price to purchase this plan is Rs.25, 000 without any maximum limit.
  • The minimum installment for an annuity is Rs.1, 000.

3. Bajaj Allianz Retire Rich Pension Plan:

This is a unit-linked pension plan that helps the policyholder to invest and secure their life post-retirement life goals. As one of the best pension plans, Bajaj Allianz Retire Rich Pension Plan helps an individual to create a financial cushion and high return on investments by investing in market-linked securities.

Benefits of Bajaj Allianz Retire Rich Pension Plan

  • The plan offers the option to choose from multiple premiums paying tenure.
  • The investment objective of this pension plan is to generate capital growth by investing in a mix of debt and equities.
  • The plan provides the option to enhance the accumulated corpus through top-up premiums in the later years.
  • The plan offers the option to take death benefits in installments.


Features of Bajaj Allianz Retire Rich Pension Plan

  • A guaranteed vesting benefit of 101% of the total premium paid or the fund value whichever is higher is paid to the insured at the end of the policy tenure.
  • The plan offers a minimum entry age of 30 years, whereas the maximum entry age of the policy is 73 years.
  • The vesting age of the policy ranges from a minimum of 37 years to a maximum of 80 years.

4. HDFC Life – Click 2 Retire:

It is an online Unit Linked Insurance Plan that provides you the market-linked returns in minimum premium rates. In this way, this guaranteed HDFC pension plan helps you to meet your post-retirement needs. This plan helps to plan for early retirement and the insurance holder can gain regular income for the rest of the life through pension scheme. 


Benefits of HDFC Life Click 2 Retire

  • The plan provides you the guaranteed vesting advantages with additional market gains.
  • Tax benefits are provided under section 80C and section 10A of the Income Tax Act, 1961.
  • The plan provides the death benefits which can be higher of the policy’s fund value or 105% of the premiums that are paid till then.
  • At the time of maturity of the policy, the maturity benefit is offered as higher of fund value or assured vesting benefit.


Features of HDFC Life Click 2 Retire

  • The minimum age to take this plan is 18 years and maximum age is 65 years.
  • The low maturity age is 45 years and the maximum maturity age is 75 years.
  • The policy secures the retirement life of the policyholder with a guaranteed maturity benefit.

5. HDFC Life - Assured Pension Plan:

This Unit Linked Pension plan provides market-linked returns along with loyalty add-ons so that you can easily meet with your retirement goals. The plan helps the insured to accumulate fund in a long-term so that they can have a financially secured life after retirement.

Benefits of HDFC Life- Assured Pension Plan

  • This plan provides guaranteed vesting benefits with additional market gains.
  • The plan as well provides the death benefits to your beneficiary. The death benefit can be higher of 105% of the premiums paid till then or policy’s fund value.
  • The plan also provides tax benefits under Section 80C of the Income Tax Act, 1961.
  • The loyalty additions start from the 11th policy year and are provided in every alternate year.


Features of HDFC Life - Assured Pension Plan

  • The minimum age to get this plan is 18 years and the minimum maturity age is 45 years.
  • This one of the top pension plans offers a single and limited pay option.
  • The plan offers limited and single premium payment option.

6. ICICI Pru Easy Retirement:

This is the best pension plan in the equity category which enables you to get a regular income after retirement by investing your money in equity. The good long term returns generated by this plan offer protection against the volatility of the market.

Benefits of ICICI Pru Easy Retirement Plan

  • You can select monthly, yearly, or half-yearly premium payment mode.
  • The minimum premium that you can pay for this plan is Rs.48, 000/ year without any minimum limit.
  • The premium payment of the policy can increase or decrease based on the terms and conditions of the policy.


Features of ICICI Pru Easy Retirement Plan

  • The minimum entry age for this plan is 18 years and maximum age is 70 years.
  • The term of the policy may range from 10 years to 30 years.
  • The minimum vesting age for this plan is 45 years and the maximum is 80 years.
  • The plan also offers tax benefits.

7. LIC Jeevan Akshay 6 Plan:

As one of the best pension plan in India, this is an immediate annuity retirement plan that you can buy by paying a single premium of lump-sum amount. This LIC Pension Plan for Retirement is the best pension plan for the investor who needs immediate annuity. You can start availing the benefits of this plan immediately after purchasing the plan. The plan offers annuity payment in different frequencies like monthly, quarterly, half-yearly and annually. 

Benefits of LIC Jeevan Akshay 6 Plan

  • The premium is paid in a lump sum.
  • You can get the pension monthly, quarterly, yearly, or half-yearly.
  • There is no maximum limit for annuity or price of the purchase, etc.
  • The premium you pay is eligible for tax exemption

Features of LIC Jeevan Akshay 6 Plan

  • The minimum price to purchase this plan is Rs.1 Lakh for offline channels of distribution and for online distribution channels it is Rs.1.50 Lakhs.
  • You do not require undergoing any medical tests to avail of this policy.
  • The minimum age to take this policy is 30 years and the maximum age is 85 years.
  • It is mandatory to show the age proof.

8. LIC Jeevan Nidhi Plan:

This is one of the best pension plans wherein the accumulated amount is used for generating your pension according to your survival after the term of the policy. It is a deferred annuity pension plan which offers guaranteed profit to the policyholder and helps to secure the financial future after retirement.

Benefits of LIC Jeevan Nidhi Plan

  • The premiums that you pay are eligible for tax exemption under section 80CCC of the Income Tax Act, 1961.
  • For the first five years of the policy, you will get guaranteed additions at Rs.50/- per thousand Sum Assured for every completed year.
  • From the sixth policy year, the policy starts participating in the profits of LIC.
  • The policyholders are entitled to receive bonus as declared by the corporation.
  • There is no maximum limit for the sum assured amount

Features of LIC Jeevan Nidhi Plan

  • The policy term may range from 5 years to 35 years.
  • The minimum vesting age for this top pension plan is 55 years and the maximum is 65 years.
  • There is no maximum limit for the basic sum assured. However, the minimum sum assured offered by the company under this plan is Rs.1 Lakh, if you pay regular premiums. For single premium policies, the basic sum assured is Rs.1.50 Lakhs.

9. Max Life Forever Young Pension Plan:

This is a unit-linked non-participating pension plan, which helps the policyholder to accumulate funds for the retirement years while protecting themselves from the ups and downs of the equity market. The policy also offers additional annuity plan benefit to provide financial security to the family of the insured against any type of unforeseen event. The plan helps the insured to create large financial corpus so that they can achieve their retirement goals and live a stress-free life after retirement. Let’s take a look at the features of the policy.

Benefits of Max Life Forever Young Pension Plan

  • The plan offers an opportunity to create a retirement corpus by investing in market-linked securities
  • The insured can choose the retirement age when they will start receiving the annuity benefits as per their future goals.
  • With the add-on rider benefit of Partner Care, the insured can secure their spouse's financial future.


Features of Max Life Forever Young Pension Plan

  • The minimum entry age offered by the policy is 30 years, whereas the maximum entry of the policy is 65 years.
  • The policy offers a maximum vesting age of 75 years.
  • The plan offers 2 fund options to choose from.
  • In the event of the unfortunate demise of the insured person, the death benefit is offered to the beneficiary of the policy as higher of the fund value or 105% of the total premium paid including the top-up premium.

10. Max Life Guaranteed Lifetime Income Pension Plan:

As one of the best pension plan in India, this plan is a traditional non-linked annuity plan that ensures to provide you a regular income post your retirement. The plan is considered as one of the best pension plans in India and a lucrative option of investment.

Benefits of Max Life Guaranteed Lifetime Income Plan

  • This top pension plan gives pension until your spouse and you are alive.
  • You can receive a pension on a quarterly basis, monthly basis, yearly basis, or half-yearly basis.
  • Your nominee gets the purchase price of the policy after your death.
  • You can choose from four annuity options.
  • You can also select the one-time lump-sum payment option for purchasing the plan.


Features of Max Life Guaranteed Income Plan

  • The minimum entry age of the policy is 50 years whereas the maximum entry age of the policy is 80 years.
  • The plan offers the annuity option that provide a return of purchase price.
  • The plan offers guaranteed income to cater the needs of the annuitant after retirement.

11. Reliance Immediate Annuity Plan:

If you are looking for the best pension plan in India to gain immediate annuity, then you can consider investing in this plan. This is a non-participating non-linked immediate annuity plan, which helps to convert accumulated corpus into a regular income for life.

Benefits of Reliance Immediate Annuity Plan

  • The minimum amount of annuity instalments that can be made is Rs,1000, there is no limit on the maximum amount of annuity instalments.
  • The annuity can be paid out in annually, monthly, half-yearly or quarterly mode.
  • The insured can choose from 3 different annuity pay-out options i.e.
    • Life annuity
    • Life annuity with return of purchase price
    • Life Annuity guaranteed for 5 years, 10 years, 15 years and payable for life thereafter.


Features of Reliance Immediate Annuity Plan

  • The plan offers a minimum entry age of 20 years, whereas the maximum entry age of the policy is 80 years.
  • The minimum purchase price of the policy is Rs.1 lakh (excluding goods and service tax and cess, if any). There is no maximum limit of purchase price offered by the policy. 

12. Reliance - Smart Pension Plan:

As one of the best pension plan in India, this is a non-participating Unit Linked Best Pension Plan that enables you to save your money in a systematic manner so that you can build a lump sum amount in a systematic way. In this way, this plan enables you to get a regular income after your retirement.

Benefits of Reliance Smart Pension Plan

  • The plan offers single, limited and regular premium payment options.
  • This is a top pension plan that ensures you to provide guaranteed loyalty additions.
  • After completion of 6 year of policy, loyalty addition is paid at the end of every 3rd policy year.
  • The plan also provides income tax benefits under section 80C and 10A of the Income Tax Act.
  • As a Unit Linked Insurance plan, the plan helps you to gain high ROI by making investment in funds of your own choice.


Features of Reliance Smart Pension Plan

  • The term of this policy ranges from 10 years to 30 years.
  • The plan offers guaranteed annuity for 5,10 & 15 years.
  • With this plan, you become eligible to get double benefits of equity and capital guarantee.
  • The minimum vesting age of this plan is 45 years whereas the maximum vesting age is 75 years.
  • The plan offers additional 5 different rider benefit options to choose from.

13. SBI Life Saral Pension Plan:

It is an individual, non-linked, participating, traditional top pension plan that offers protection to you from volatility and fluctuation of the market. This top SBI pension plan offers guaranteed bonuses for the first five years.

Benefits of SBI Life Saral Pension Plan

  • Guaranteed bonuses are provided for the first 5 years.
  • You can also get the vesting benefits on the plan’s maturity.
  • The plan also provides loan tenure ranging from 10 years to 40 years.
  • The sum assured does not have any maximum limit whereas the minimum sum assured that you can expect from this plan is Rs.1 Lakh.



Features of SBI Life Saral Pension Plan

  • The minimum entry age for this top pension plan is 18 years and maximum age is 65 years.
  • The minimum premium that you can pay annually is Rs.7, 500 with no cap on the maximum limit.
  • The minimum maturity age of this plan is 40 years and the maximum age is 70 years.


Summit It Up!

These are some of the top pension plans available in India; you can select one as per your requirements to safeguard your future. This is because being financially independent is one of the biggest blessings that you can have while you are at your golden age i.e. your post-retirement life. So, do not hesitate to select a pension policy, purchase one and secure your future.

You may also like to read: National Pension Scheme (NPS)

Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
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