Everyone dreams of enjoying a stress-free and fulfilling retirement. To turn this dream into reality, having a solid financial plan, including a reliable pension, is a must. A pension provides the stability and lifelong income needed to enjoy your golden years with peace of mind.
To help you prepare for a financially secure future, we’ve curated a list of the top 10 pension plans in India that can offer the financial security you deserve for a worry-free retirement. These plans can serve as the foundation of your retirement strategy, offering a structured way to build your retirement corpus and enjoy peace of mind in your later years.
What are Pension plans?
Pension plans are specialized types of life insurance designed to provide financial security in one's golden years. The right plan is a safety net, offering stability and peace of mind after retirement. To benefit from the pension plan, you have to contribute a portion of your income to a pension scheme, either as a lump sum or through regular premium payments over time. Once the policy matures, it ensures a steady income flow to support you during your retirement. By investing consistently during your working years, you can build a substantial financial corpus to rely on after retirement.
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Axis Max Life Smart Guaranteed Pension Plan
The Axis Max Life Smart Guaranteed Pension Plan offers a secure way to build a retirement corpus with guaranteed income for life. Flexible premium payment options and the ability to choose your annuity payout frequency ensure financial stability in your retirement years.
Features & Benefits:
- Option for return of premium on death.
- Enhance the annuity amount with the top-up premiums.
- Receive your income on a yearly, half-yearly, quarterly, or monthly basis
- No medical examination for the issuance of the annuity plan
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HDFC Click 2 Life Retire Plan
It’s quite a basic unit-linked pension plan that assists you in meeting your retirement goals hassle-free. It offers market-linked returns and a guaranteed income option after retirement. Tax benefits and the ability to choose your annuity payout secure your financial future.
Features and benefits:
- No charges for entry, exit, and policy administration.
- Single-pay and Limited Pay options are available.
- Death benefits payable to the nominee will be 105% of the premiums paid up to that point.
SBI Life Saral Retirement Saver Plan
The SBI Life-Saral Pension is a single premium, individual, non-linked, non-participating immediate annuity plan. It ensures a steady income, with a return on the purchase price, allowing you to enjoy financial security during the retirement years.
Features and benefits:
- Offers insurance option with the SBI Life - Preferred Term Rider.
- You can avail income tax benefits according to the applicable Indian income tax regulations.
- Grow your retirement fund by receiving regular simple reversionary bonuses during the insurance term.
- The premium payment modes available are single, monthly, half-yearly, and yearly.
LIC New Jeevan Shanti Plan
It's a single premium plan where you can select between a joint life deferred annuity and a single life deferred annuity.
Features and benefits:
- Plan available both online and offline.
- Additional death benefits will be paid every month until the end of the waiting period if the policyholder passes away during that time.
- Annuity modes available are monthly, quarterly, half-yearly, and yearly.
- Policy loans can be availed after three months of policy conclusion.
Bajaj Allianz Life Long Life Goal
Bajaj Allianz Life Long Life Goal is a unit-linked, non-participating whole-life insurance plan designed to secure your future. It offers lifelong coverage, investment opportunities, and the flexibility to build a retirement corpus while ensuring financial stability for you and your loved ones.
Features and benefits:
- The plan is available in two variants: Long Life Goal with Waiver of Premium and Long Life Goal without Waiver of Premium.
- Four investment portfolio options are available.
- Loyalty Additions are offered every year from the fifth policy year to the 25th policy year.
- Partial withdrawals can be made after the fifth policy year.
ICICI Pru Easy Retirement Plan
ICICI Pru Easy Retirement Plan provides regular income to the policyholder, by offering investment opportunities in stocks.
Features and benefits:
- This plan has various payment frequency methods like biannual, monthly, and yearly
- Policyholders can pay premiums on a monthly, half-yearly, and yearly basis.
- As this is a pension policy, the insured can reduce their taxable income.
- The death benefit in this plan is equal to 105% of the total premium paid.
Aditya Birla Sun Life Empower Pension Plan
Aditya Birla Sun Life Empower Pension Plan is a retirement plan designed to build a secure retirement fund. It's a single premium payment plan, in return giving reliable income for your retirement years. It offers flexible payout options and investment choices to match your goals, ensuring a stable financial future.
Feature and Benefits
- Market-linked returns to grow your corpus.
- Loyalty additions to boost retirement savings.
- Tax-saving benefits under Section 80C.
Tata AIA Fortune Guarantee Pension Plan
Offers guaranteed income after retirement with flexible annuity options and death benefit protection.
Feature and Benefits
- Both Deferred and immediate annuity options are available
- Key payout options available- Monthly, quarterly, Annual, and yearly.
- The spouse option is also available for joint live coverage.
- Increase income by topping up premiums.
- Ability to obtain a loan against the policy.
HDFC Life Systematic Retirement Plan
The HDFC Life Systematic Retirement Plan is a deferred annuity plan designed to help you build a secure retirement corpus.
Key Features and Benefits
- Flexible Deferment Period
- Guaranteed Lifelong Income: Enjoy financial stability with limited premium payments.
- Flexible Payout Options
- Return of Premiums: Systematic Premium Payments:
ICICI Pru Signature Plan
ICICI Pru Signature Plan is a Unit Linked Insurance Plan (ULIP) that offers life coverage, potential wealth accumulation through market investments, and benefits like wealth boosters and tax savings.
Key Features and Benefits
- A unit-linked insurance plan offering wealth creation with life cover protection.
- Enjoy zero premium allocation charges, maximizing your investments.
- Flexible premium payment and withdrawal options to meet changing financial needs.
- Offers tax benefits on premiums paid and returns under applicable laws.
Bottom Line
Investing in the right pension plan is the first step towards a financially secure and stress-free retirement. These are just a few pension plans that offer guaranteed income, wealth-building potential, and flexibility, making them strong options for your retirement strategy. However, many other excellent plans are also available. Take the time to explore your options and select the plan that best matches your future goals to enjoy a carefree and fulfilling retirement!
FAQs
What is a pension plan? How it works
Pension plans are a type of life insurance plan that offers the dual benefit of insurance and investment. They offer a fixed percentage of income after retirement.
How to get a Rs 30,000 pension per month?
NPS: If you start investing Rs 2,650 per month in NPS at the age of 21 and invest for the next 39 years, you will end up generating a pension of Rs 30,000 per month by the retirement age of 60 years. Rs 30,000 pension per month, NPS pensions after retirement: Planning for retirement is a crucial step.
Can one invest in more than one pension plan in India?
Yes, individuals can invest in multiple pension plans in India, subject to certain limits and regulations. Investing in various plans can help diversify investment plans and reduce the overall risk of the individual.
