The 5 best guaranteed pension plan for retirements in India

The 5 best guaranteed pension plan for retirements in India

Retirement planning is a death step when your professional income starts to decline to make sure your lifestyle doesn’t get bogged down.
With the help of reliable pension plans in India, you can enjoy the lifestyle you want in your old age without compromising on your desires. With the ever-increasing cost of living and inflation, retirement planning has become more required than ever in today’s world.

5 best guaranteed pension plan for retirements in India

A person retires after working for a lifetime. After fulfilling your responsibilities towards your loved ones, you have the right to live in peace.

Ideally, your retirement should be the start of a fun phase in your life—you’re no longer responsible, you can do whatever you want, and you should have peace of mind.

Outline your retirement goals, invest in the best retirement plan in India, and monitor the growth of your investments, making sure your retirement planning is headed in the right direction.

What is a Pension Plan?

A pension plan is a financial product that’s designed to meet your specific financial security needs once the professional income has ceased.

A normal the best pension plan in India has the facility that you invest a small part of your current income in that plan for a long period. The accumulated wealth gets even better with the help of compounding benefits on it, and you can use it as monthly income once you retire professionally.

Type of insurance plan

There are different types of the best pension or retirement plans in India, they generally fall under the categories of Life / Immediate / Deferred Annuity, National Pension Scheme, Pension Fund, and ULIP.

Pension plan with/without life cover

In a pension insurance plan, you have the peace of mind that while on one hand, you are saving for your future, your life is covered on the other. In case of an unfortunate event, the beneficiary named in your insurance retirement policy gets a lump sum amount as Sum Assured.

Annuity Insurance Pension Plans

  • In an immediate annuity plan, you have to pay a lump-sum premium at the inception of the plan, in which you get the annuity immediately, and you choose how much time you get the amount.
  • A Deferred Annuity Plan has two special stages – Accumulation and Income. In such a pension plan, you build a corpus during the policy term, and then get a pension in the form of a periodic annuity payout at your chosen time in the future.

Traditional pension fund

Examples of pension funds are Public Provident Funds. A certain percentage of the salary of employees in EPF is contributed.

PPF is a well-known savings instrument, with a long lock-in period, benefits of compound interest, and an opportunity to maintain your accumulated capital.

National Pension Scheme (NPS)

NPS developed by the Government of India specifically caters to the needs of people who are looking to build a retirement corpus. This transparent instrument lets you choose between Auto and Active modes. Auto mode involves investing in corporate bonds, government bonds, and equities. In the active mode, 50% of the investment is inequities, and the rest is in bonds.

ULIP Pension Plan

Unit-linked insurance plans are products, which fulfill the twin need of protecting your life and investing your money actively. 

The premium is invested in bonds, securities, and stocks of your risk appetite.

The 5 best Pension Plan in India

1- Aditiya Birla Sunlife Empower Plan

  • Entry Age- 25- 70
  • Policy term – 5- 10 Years
  • Premium Amount – 18000 Rs

2- Bajaj Lifelong Goal Plan

  • Entry Age- 18- 65
  • Policy term – 10 – 25 Years
  • Premium Amount – 25000 rs
  • Sum insured – 10 times of premium

3- Adalwise Tokyo Life Wealth Ultima

  • Entry Age- 0 – 70
  • Policy term – 10 – 100 
  • Premium Amount – 48000

4- Cenera HSBC Invest 4 G Plan

  • Entry Age- minimum 18 years
  • Policy term – 5- 30 Years
  • Premium Amount – 50000

5- SBI Life – Retire Smart

Retire Smart ensures your investment against market volatility. Secure your future by accumulating retirement corpus through systematic investments during your income-earning years.

  • Entry Age – 30 Years
  • Annual Premium Range – 24000

SBI Life – Annuity Plan

With Annuity Plus, you get a wide variety of annuity options on payment of just a single premium. Hence, you can be sure of getting a regular annuity/pension for the rest of your life.

SBI Life – Saral Retirement Saver

Make sure your future is as comfortable as your present with SBI Life – Saral Retirement Saver. Through regular bonuses, you can now easily meet your post-retirement financial needs.

  • Entry Age – 18 Years
  • Annual Premium Range – 75000

Benefits of Pension Plan

  • By saving and investing in the best pension or Retirement Plans in India, you can systematically invest your small amounts today, so that you will not have to compromise on your lifestyle in the future.
  • Even the journey begins with just one step. Pension plans are long-term investment instruments, which help you invest small amounts regularly over a long period. In which the benefits of compound interest and potential bonuses are added to it, which increases even more. Get started today for a financially secure future.
  • You need a regular income source during your retirement, which should not let you miss your professional salary. Pension plans generate assured income during your retirement by helping you to invest and reinvest your corpus.
  • You can choose an annuity plan, which provides a secure retirement income to your dependents after you pass away.
  • If your retirement plan is properly taken care of, you can use your provident fund and gratuity payouts for anything of your choice.
  • An annuity insurance retirement policy can play a vital role in safeguarding your financial independence and ensuring peace of mind for your child.
  • You can get retirement insurance benefits and get tax exemption on the premiums deposited, as well as the maturity amount received on termination of the pension plan.

When should we take pension plan?

Most young professionals think that retirement planning is still a long way off from them. Well, there are many benefits to planning for retirement as early as possible—the younger you are, the better off you will be to start retirement planning.

  • Your home loan to matrimonial expenses, your financial responsibilities increase as you age. Therefore, planning for retirement at a younger age approach than at a higher age.
  • Get started today, no matter how small, before investing in the best pension or retirement plan in India rather than waiting to save a huge amount.
  • Even a small amount invested continuously for many years will turn into a substantial amount with the help of compound interest on pension plans in India. Compound interest gives you the best value for your time and money invested.
  • Most of the best pension plans in India offer tax benefits on the premium amount to be deposited and the maturity benefits.

FAQ/Frequently Asked Questions

Q.1- Why do you need a retirement plan?

A retirement plan ensures your financial security even after your retirement. It provides a stable and stable income over a long period depending on the amount of money you invest.

There are many benefits of investing systematically over a long period, such as increasing your corpus and getting the benefit of compound interest.

Q.2- What is the right age to invest in a retirement plan?

The sooner this is done, the better. Get started early to achieve a long-term investment goal. You can start investing in your retirement plan from the minimum age of 18 years.

Aim to start investing as early as possible, so that you have time to save a huge corpus, take advantage of compound interest, and use your investments when you reach your chosen retirement age. Insurance for senior citizens can be expensive, but it is also necessary.

Q.3- How do I start planning my retirement?

These factors should be considered while investing in a pension plan – your monthly expenditure, expected monthly expenses during retirement, inflation, risk appetite, potential for tax exemptions, and personal loan facility against retirement policy.

Q.4- What are the tax benefits I can get with a pension plan?

For the premium you deposit in IndiaFirst Life Pension Plan, you will get tax benefits under section 80C and section 10(10D) as per the current income tax laws and also on its maturity.


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