In the modern world, retirement is more than about sitting in a rocking chair or watching an old TV series one more time. It is the time when you can develop new interests, pursue an old hobby, or enjoy vacations. Well, all these activities require a decent financial basis, and the pension plan is the key to doing it.
The retirement plan in India that will work for you will guarantee you a pool of funds and your family’s security. Today, let us discuss the best retirement plan in India to find the one that will work for you and help you secure a happy future.
Exploring Types of Pension Plans in India
Just as Indian culture is diverse, there are several plans to consider as replacements for pensions. In addition to traditional plans, you can even leverage insurance investments that will cater to your golden year’s requirements.
Here are some of the top plans:
- Annuity Plans: Acting like pension plans, annuities offer a regular income stream in your golden years when invested at the right time.
- Unit-Linked Pension Plans: Your premiums are invested in a combination of stocks, bonds, and securities, depending on your risk appetite. This builds a corpus that is paid out at maturity.
These plans are great for long-term corpus growth. If your risk appetite and age allow for equity exposure, use Unit-Linked pension plans to build your retirement funds faster.
- Deferred Annuity: This is an alternative to a traditional pension plan in India where you invest, and it grows without tax till withdrawal. Such payouts usually start after an agreed deferment period, most commonly at retirement age. This plan will yield a constant stream of income even after retirement.
- Term Insurance with Return of Premium: While a term plan is not considered to be an ideal pension plan, it may act as one. It can be the best pension plan in India as it offers life cover and all the premium amount is returned as the maturity benefit. Moreover, the premiums paid will be tax-free under Section 80C, and the premium refund is also tax-free under Section 10(10D).
- Guaranteed Period Annuity: It refers to the annuity that will continue even if the policyholder dies within the guaranteed period. Usually, other annuities require the policyholder to submit proof of living every year to continue receiving an annuity. A guaranteed period annuity releases you from the obligation at least for a few years.
- Social Security Schemes: The government of India provides different social security schemes, including pension schemes. The idea is that you invest today to ensure your future. Some examples include the Atal Pension Yojana (APY), Pradhan Mantri Shram Yogi Maan-Dhan Yojana (PM-SYM), Pradhan Mantri Jeevan Jyoti Yojana (PMJJY), etc.
- Pension Plan with Cover: Several insurance providers offer a tailored pension plan that also offers insurance coverage. It is the best pension plan in India if you’re looking for an income source post-retirement while ensuring the financial security of your loved ones.
Your Retirement, Your Way
Planning for retirement should always start early, as it is a journey that requires time and careful budget consideration. The optimal and best pension plan in India depends on one’s specific objectives and desires for later years. It is worthwhile investigating, comparing various alternatives, and selecting the option that will help actualise one’s vision for retirement. You can end up searching for one of the best insurance companies, such as Canara HSBC Life Insurance.
Their official website features a variety of online plans that may be suitable insurance investments.
Visit their official website to buy a pension plan in India that meets your needs and preferences today!
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