Retirement planning made simpler and comfortable; now more than ever
A pension plan is an investment instrument that allows you to cumulate the savings required to build a surplus corpus over a fixed interval of time. These pension investment schemes require you to invest capital regularly while you’re in your active age, working at a corporate.
This allows you to sustain a consistent source of income for your retirement days, and that’s why this financial instrument is also popularly known as a retirement planning scheme. The best part is – pension plan also feature compounding that may even help you to beat inflation.
Putting it simply, you’ll be able to manage the day-to-day expenses of your family while enjoying quality time relaxing after you’re no longer working. To make things even easier for you, here’s a list of the best pension plans in India that can help you build a financially free future:
- HDFC Life Click 2 Retire Plan
Along with a combined benefit of pension plans and market-related returns, this pension scheme by HDFC Life is a very affordable plan to plan for your post-retirement days. It requires a minimum age bar of 18 years and a maximum of 65 years for you to be eligible for this scheme.
This plan also offers you a death benefit that’s assured to be higher than the value of the fund. Alternatively, you can also choose to provide your nominee with 105% of the premiums you have paid over the tenure of your plan.
Moreover, the plan also offers you tax reduction and benefits under section 80CCC of the Income Tax Act of India. To prevent surrendering the scheme, you must make sure that you maintain a minimum maturity age of 45 years that can go until 75 years.
2. Max Life Guaranteed Lifetime Income Plan
If you’re looking for a scheme specifically to support the lifestyle of your spouse, this plan is certainly a perfect match for you. It keeps providing your pension payments until your spouse lives. To make it even better, it also provides a death benefit of the entire purchase price.
The plan also provides you variations of pension receiving timelines such as monthly, annually, quarterly, and semi-quarterly. It falls under traditional pension plans that allow you to gain a regular income after your retirement.
On top of that, the Max Life Guaranteed Lifetime Income Plan also provides you over six annuity options to choose from. So, make sure that you check it out if you’re looking for combined protection of you and your spouse.
3. SBI Life Saral Pension Plan
Being one of the most stable retirement planning schemes in India, the SBI Life Saral is a traditional, non-linked, and participating individual plan that keeps your fund safe from the volatile conditions and constant changes of the market.
It assures you a guaranteed income for the beginning five years of the tenure of your policy. After which, it starts paying 2.50% and 2.75% of the insured sum for the simultaneous three years and the rest of the tenure of your plan respectively.
Talking about the minimum tenure of this policy, you need to maintain at least five years of paid premiums to keep your scheme active. It can go as high as 40 years, and doesn’t allow you to extend the plan beyond it. This pension plan also requires you to have an upfront investment of Rs. 7,500 per annum. Furthermore, you need to be at least eighteen years and at max sixty-five years of age to be eligible for investing in this pension scheme.
4. Reliance Life Insurance Smart Pension Plan
Reliance Life Insurance is popular for its loyalty bonuses and additions. Following the same tradition, the Smart Pension Plan ensures guaranteed bonuses and additions for loyalty. The plan offers you two different policy tenures of ten and thirty years.
It also allows you to avail tax reduction and benefits under the section 10 (10D) and 80C of the Income Tax Act of India, established in 1961. Moreover, this pension plan also features optional riders that can be used to extend the coverage of your policy.
To successfully yield the benefits of this plan, you need to maintain a maturity age of at least 45 years that can go as high as 75 years. It’s a perfect plan to build a lump sum for your post-work days after getting retired from your primary profession.
5. Birla Sun Life Empower Pension Plan
With a varied policy tenure of five and thirty years, this unit-linked non-participating pension plan by Birla Sun Life is a perfect assisting financial tool to build a supple financial corpus that allows you to enjoy your post-retirement days with utmost ease.
The company has kept the minimum entry barrier to 25 years, along with a maximum restriction of 70 years. Moreover, you can also avail of premium paying options with the purchase of this plan. There are even self-managed options that help you choose your required fund option as per your risk appetite.
6. Canara HSBC OBC – Guaranteed Income 4 Life Plan
If you’re looking for a perfect retirement planning scheme to achieve your long-term goals, this non-participating, non-linked, and individual plan provides assured benefits along with a regular income that ensures both your long-term and short-term financial goals are achieved with ease.
It offers various customization features and you can choose from a variety of terms and premium payment options. This plan is ideally curated according to the various stages of your life and personalized as per your present situation to help you make the most out of it.
The Takeaway
Pension plans are an ideal way to achieve financial independence during your active age. This allows you to enjoy every bit of your retirement period and ensures that you never regret anything in your life. It’s a financial decision that you must plan for the financial stability of your life. Therefore, compare your shortlisted plans and choose the one that resonates with your requirements and goals in addition to your research.
