What is a Pension Plan?
A pension plan is also referred to as a retirement plan. It is a plan that allows an individual to accumulate a corpus amount of money through the tenure so that it can be used in times after their retirement from their job. This amount can be collected for use during times with no income or savings or less savings or even to fulfill any post – retirement desires or wants or goals. It can also be sued to provide an income after retirement which is steady and provides a sense of security.
What are the types of pension plans I can choose from and invest into?
There are various types of pension plans available for you to choose from in accordance with your preferences and requirements. You can choose any type of pension plan to invest into after researching about which plan would be the best for you. There are a lot of plans available under the types as well. They are as follows:
- National Pension Scheme (NPS)
- With Cover and Without Cover Pension Plans
- Pension Funds
- Guaranteed Period Annuity
- Immediate Annuity
- Deferred Annuity
- Annuity Certain
- Life Annuity
Is a pension or retirement plan necessary to take if I have savings?
Saving a great but they obviously deplete through time, so you need a financially secure income which can be provided to you if you invest into a pension plan or retirement plan in the early stages of your work life. If the individual has certain amount of savings, a pension or a retirement plan can help them with the money they would require during times of distress or when any emergency situation arises which requires you shelling out a large sum of money which could probably drain your savings.
Best and ideal pension plans for 2019
There are a lot of pension plans that many financial companies have been offering to the public to take up and invest into. Few of the best ones to out your hard earned money into in the year 2019 in India are as follows:
- Personal Pension Plan by HDFC
HDFC offers people a really good pension plan to invest into. It is a retirement plan that functions on the basis of a single life. This plan offers great features as it has an option to take up the plan with EMI options. The premiums that have to be paid also have a very flexible frequency option that can be chosen by the policy bearer. The term of the HDFC personal pension scheme can be any number of years between the periods of 10 years to 40 years. This pension plan provides the family or the nominees of the policy holder with a death benefit of 101 % of the entire premium paid till that time, after the unfortunate death of the pension plan holder. HDFC also allows for this plan to be vested which is the shifting of the policy from the insured after they die to their family or nominee. Invest into this plan to get great benefits and have a smooth retirement.
- Retire Rich by Bajaj Allianz
Bajaj Allianz offers a pension plan under the name of Retire Rich. This is a type of annuity pension plan. This pension plan provides the family or the nominees of the policy holder with a death benefit of 105 % of the entire premium paid till that time, after the unfortunate death of the pension plan holder. The minimum premium payable annually has a really nominal amount of INR 15000. You can enter into the Bajaj Allianz retire rich pension plan from any age between 30 years to 73 years. It provides many benefits to the pension plan holder as well as their family by giving a death benefit, vesting option and also great tax benefits under the Section 80 CCC and Section 10 (10 A) of the Income Tax Act in India. This is one of the best plans to invest into in the year 2019 so that you can save money on taxes as well.
- HDFC Life Guaranteed Pension Plans
The HDFC life Guaranteed Pension Plan is one of the best retirement pension plans offered by HDFC. This retirement plan will help you to be able to build yourself a good amount of retirement fund. The term of the pension plan can be any number of years between 10 years to 20 years. This plan gives the plan holder, every years, an assured benefit which is 3 % of the sum assured if the insured pay premiums with tenures of 5, 7 or 10 years. This is a great benefit as your investments will keep benefiting you every year and you can see it for yourself. The minimum amount that one needs to pay as a premium amount per annum is as low as INR 24,000. The sum assured is subject to underwriting. A person can enter into the HDFC life Guaranteed Pension Plan between the ages of 35 years to 65 years.
- Reliance smart Pension plan
The Reliance smart Pension plan is a unit linked pension plan which is non – participating. It can be entered by anyone between the ages of 8 years to 65 years. The minimum amount that one needs to pay as a premium amount per annum is as low as INR 24,000 which is easily affordable. The option to vest is also available. Make the smart decision of getting the Smart Pension Plan by Reliance in 2019 to get the best benefits.
Retirement can be hard on you and your family. So, you could make sure that you as well as your family are at least financially secure post retirement with the pension plans. Invest into the best pension plans to make sure that you have a smooth retirement and an even smoother post retirement life. Pension plans can help you and your family out a great deal by making sure that you get a steady income even after your retirement.