Looking For a Beneficial Pension Plan? Read This

We work hard all through our lives to ensure that we can enjoy the little things in life, and provide all the comforts that modern day life has to offer to our loved ones. Then, what’s stopping us from living our lives in comfort during the older years of our life? Nothing, right? However, to do that we need to plan ahead in life to ensure that we have the resources and finances to sail through the golden years of our lives without having to depend on anyone for assistance.

One of the best ways of doing so is to invest in a pension plan. It helps create stability and guarantees returns so that you can continue to live your life as independently as you did while you were working. In this article, we will look at the best pension plan in India, and how it helps you sail through the second innings of your life.

What is a Pension Plan?

A pension plan is basically a fund that you invest in to ensure regular income/guaranteed returns post-retirement. Generally, there are two types of pension funds: Created by your employer, and created by yourself.

• Created by your Employer: This pension fund is provided by your employer where the major part of the investment is done by them. It goes towards creating your pension fund which is paid out once you achieve your superannuation.
• Created by Yourself: In this case, you would be making investment towards building your retirement corpus. There are various options such as NPS, money back plan, deferred annuity, life annuity, etc. that you can invest in for steady returns once the plan has matured.

If you want the best of both worlds, then it’s advised that you create your own corpus even if your employer has already created a pension fund for you. It will help you reap greater returns once both of them mature giving you access to a significant amount of money to take care of living expenses, medical emergencies, etc. once you retire. Moreover, it also helps you save taxes under the income tax slab FY 2021-2022.

Types of Pension Plans

You have multiple choices when it comes to a pension plan, so you need to choose one that you think is most relevant to the financial goals that you have in your mind. Let’s look at a few of them.

• NPS: The National Pension Scheme is a pension fund offered by the Government of India to help people build a retirement corpus. It is available to everyone, both employed and self-employed individuals, and offers you the option of a lumpsum payout along with a regular pension once you retire and the plan has matured.
• Deferred Annuity: On opting for a deferred annuity pension plan, you need to make single/daily premiums to build a corpus. It’s the best pension plan in India if you want significant savings to accumulate as pension over the longer run.
• Immediate Annuity: For people who have started late; the immediate annuity pension plan offers immediate annuity. However, you have to make a lumpsum payment to get returns under this scheme.
• Annuity Certain: This is for people who want regular payouts for a set number of years. You have the added option to choose the payment duration. If the policyholder passes away before maturity, then the nominee (s) are entitled to receive all of investments made as payout under this pension plan.
• Life Annuity: This pension plan comes with a ‘with spouse’ option and remains active as long as the policyholder is alive. In the unfortunate event of the policyholder passing away, their spouse is entitled to receive pension under the scheme. This ensures financial safety of that person’s spouse and is the best pension plan in India for people wanting to create a financial safety net for their spouses.

For anyone wanting to invest in a pension plan, these are some of the best options that are available. The small investments that you make throughout your working life goes towards creating a significant corpus that would be needed when the regular income stops. So, once you have stopped working, your hard-earned money would have already worked hard enough to ensure that you are never short of finances.

Max Life Insurance has the best pension plan in India that comes with guaranteed returns. So, in case you had been thinking of investing in your financial future, you should check them out. They have been industry leaders for decades with a rich track record of delivering on their promises, and they offer one of the best customer experiences in the industry.

A pension plan is not only a financial safety net; it’s your ticket to traveling the world, pursuing your hobbies, and doing the things that you always wanted to do, but seldom had the time. After all, retirement doesn’t mean that you have sit at home, it could also be one of the most exciting times of your life. The choice is yours, it’s time to take your pick!