Retirement is a reality and we all plan for our retirement at the early stage of our careers. The market is filled with the various pension plan. Pension plans are also known as retirement plans, these plans are designed to assist you in setting away a percentage of your income during your earning years (called premium) to establish a monetary reserve that will provide you with financial assistance (annuity or pension) in your relaxing years of retirement.
The primary goal of a pension plan is to receive a regular paycheck after retirement. Given the ever-increasing inflation, investing in these programmes has become critical. Even if you have a large number of investment funds in your bank account, you may require one.
Pension plans are a kind of investment plan that allows you to save a portion of your assets over time in order to have a secure financial life post-retirement. Pension plans assist you in dealing with post-retirement uncertainties and provide a consistent flow of income after retirement.
Retirement planning is an important component of everyone's life plan!
Below are some of the best pension plans available in India that can you buy as per your needs:
Deferred annuities are insurance products designed to provide you with a monthly income at a later period. There is an accumulation phase in which you make payments for a certain number of years, followed by a payout period in which you can opt to receive a regular income.
The pension is paid out promptly under an instant annuity programme. The policyholder must pay a lump-sum payment, and the pension will be supplied instantaneously depending on the amount paid. The insured can pick from a variety of annuity choices under the instant annuity pension programme. Furthermore, the premiums paid are tax-free under the Income-tax Act of 1961.
The insurance policy is paid to the pensioner over a certain number of years under this pension plan option. The insured individual can select the time, and if they die before receiving the full payment, the annuity will be given to the policy's beneficiary.
Guaranteed Period Annuity
The pension is supplied to the policyholder for specific durations (5 years, 10 years, 15 years, or 20 years), regardless of whether the insured survives that duration or not.
The annuitant will receive the pension amount until death under the Life Annuity Plan. After selecting the option 'with the spouse,' the total amount of the pension benefits will be paid to the policyholder's spouse in the event of the policyholder's death.
NPS (National Pension Scheme)
The GOI launched the NPS to secure an individual's financial future after retirement. The policyholder can invest in the NPS. Individuals' NPS funds are invested in equities and debt funds based on their preferences in order to create returns on investment.
Other Notable Pension Plans
Other than the above-mentioned pension plans, a few other notable plans are also available for retirees. Life Annuity, Pension Funds, Whole Life ULIPs (Unit Linked Insurance Policies), Defined benefits plans, and some of the best pension plans you can think of as your retirement plan.