After retirement, your regular income stops but expenses don’t and thus you need to go wisely on retirement planning to manage your finances. Investing in a pension plan or retirement plan works towards securing your goals for the post-retirement phase. A pension plan provides the dual benefits of Return on Investment and Insurance cover. You only need to pick a right pension scheme for Disabled, Widow and Senior Citizens.
Investing a regular amount in a pension plan will help to accumulate a corpus that will ensure a steady flow of monthly pension after your retirement. The corpus that accumulates in a pension scheme will help to take care of increasing healthcare costs and other financial requirements.
Why buy a Pension Plan?
- Lead an Independent Life : Nowadays, people are seeking to lead an independent life. You need to invest in a pension plan that fulfills your post-retirement needs.
- Accumulate Corpus : Investing in a pension scheme will help to accumulate the corpus to meet your financial needs after retirement.
- Dual Benefit: A pension plan provides the assurance of regular pension and life cover.
- Confront Inflation: Inflation eats up your savings and it impacts the financial requirements for the future. Investing in a pension plan helps to beat the inflation factor.
How does the Pension Plan work for Widows, Disabled and Senior Citizen?
The current pension scheme for widows is applicable for widows aged 40 years and above who are below the poverty line. The amount given under this scheme is Rs. 300 per month till the age of 79 years and Rs. 500 for widows who are 80 years and above. Similarly, the current pension scheme for disabled is applicable for people aged 18 years and above with 80% disability, who are below the poverty line. The amount given under this scheme is Rs. 300 per month till the age of 79 years and after that, Rs. 500 is given. Now talking about a senior citizen, the pension scheme is applicable for people who are 60 years and above and are below the poverty line. The amount given under this scheme is Rs. 200 per month for beneficiaries aged 60-79 years and Rs. 500 for those who are 80 years and above.
But the government is looking to bring more people under this scheme by bringing changes in the definition of disability and reducing the age limit. For example, the government is planning to reduce the eligibility of 80% disability for pension benefits to 40%. To improve these schemes, the government is also planning to pay pension on a fixed day of the month.
Choose a Right Pension Scheme
You need to go through some of the best pension plans that will help to fulfill your financial goals after your retirement. Let’s look at some of the best pension plans available with different insurance companies.
HDFC Life Guaranteed Pension Plan
HDFC Life Guaranteed Pension Plan offers guaranteed returns and help you to accumulate a corpus to fulfill your retirement needs. It secures your retirement funds to ensure a worry-free retirement phase.
- Assured death benefit is payable to the nominee
- Guaranteed Additions is payable at maturity of the policy
- Vesting additions per year and payable at maturity of the policy
- One-third of the accumulated amount as a tax-free lump sum
Max Life Guaranteed Lifetime Income Plan
Max Life Guaranteed Lifetime Income Plan is an immediate annuity pension plan that guarantees you the self-dependence during your retirement years. Investing in this pension plan ensures a regular source of income and you can also meet your expenses easily.
- Guaranteed income to cater to your financial needs
- Flexible annuity options to fulfill your needs
- Multiple payout options
- Death cover for single life and joint lives
SBI Life Saral Pension Plan
SBI Life Saral Pension Plan provides security against market volatility and helps to accumulate funds for your retirement. By investing in this pension scheme, you will get assurance for regular income during the post-retirement life.
- Receive maturity benefit as accumulated funds
- Deferment of vesting/maturity benefits
- Death benefit to the nominee
- One-third of the benefit as tax-free lump sum amount
- Bonuses are payable.
ICICI Pru Easy Retirement Plan
ICICI Pru Easy Retirement is a ULIP pension plan which ensures equity-linked growth on your investment and the assurance of capital guarantee as well. This plan provides a sizeable retirement corpus so that you will receive a regular income after retirement.
- Build retirement corpus
- Protection for your savings
- Top-ups to boost your investment
- Multiple fund options to invest money
- Tax benefits
Everybody wishes for a secured and peaceful life after retirement or at a later stage of their life and that can be achieved with a proper pension plan. There are various options of pension plans available in the market which can fulfill your daily needs at an advanced age of your life. All you need to do is analyze and compare different plans and choose the best one according to your need and situation.