Retirement Plan

Retire plans also known as retirement plans are investment plans that lets you allocate a part of your savings to accumulate over a period of time and provide you with steady income after retirement. During the course of life, savings get exhausted very fast and sometimes used in emergencies, so it is best option to select a pension scheme which helps you secure your cash flow for meeting basic daily needs post retirement. Pension plans help you to enjoy your post-retirement life without any tension. Retirement/Pension Plans can help you secure your retirement dreams by ensuring that you have enough funds when you finally decide to call it a day. So start planning for your retirement today by systematically investing in our Retirement Plans.

Importance of Retirement Plan

*Change of social structures:
In spite of family support, many retirees don’t prefer depending on the relatives or children for meeting post retirement expenses. So, it's important to get a retirement plan so you maintain your lifestyle independently.
*Desire to remain contributor:
The want to contribute to the family by providing and supporting the kids or grand kids at milestones of their life remains even after retirement is inevitable. Starting an independent venture is also an emerging trend. These can be fulfilled only when one is financially self-reliant.
*Shortfall in Employer Funded Pension/Pension Funds:
Many private sector firm don’t have pension fund for their employee thus, it is good to have pension or retirement plans to meet daily expenses post retirement.
*Rest and relaxation:
Once you retire you will build a retirement corpus from retirement plan which you can enjoy throughout your life till death.
*Lack of social security system:
There is no social security system in our country. Hence one has to plan to build the entire corpus to help meet the regular income or any contingency post retirement.
*Increase in life expectancy:
Our generation will live longer than previous ones due to improved medical and healthcare, implying the need to gather enough funds that can sustain longer life. This also implies that the healthcare needs and expenses are likely to haunt us.Our generation will live longer than previous ones due to improved medical and healthcare, implying the need to gather enough funds that can sustain longer life. This also implies that the healthcare needs and expenses are likely to haunt us.

Benefits of Retirement Plans

*Good alternative for people in private jobs:
Pension plans are a good way to earn pension for people employed in the private sector. Unlike the public sector like central or state allocates a certain percentage of the salary towards pension. Whereas, there is no such benefit in private sector. Thus, pension plans plays a vital role for people who are employed in private sector.
*Regular income:
Advantage of pension plans is that the policyholder and his family receive a regular income. Regular income helps to meet daily needs of the policyholder and his family. Income received to the policy holder can be monthly, quarterly, Half yearly or yearly. The regular income help the pensioner to live a comfortable life.
*Hassle-free income:
Once you buy a retirement or pension plan you don’t have to run from pillar to post. Whatever pension product you choose from any insurance company, the money will be deposited in the bank account you specify like clockwork. Most of the minimal paperwork would have been done at the time of buying the pension plan and after that you start getting your pension in your bank account. All you have to do is provide details of any change in address or bank account and give your acquiescence to the modalities of how and where you will receive your pension.
*Receive better returns in pension plans:
The guaranteed additions such as reversionary bonus and final bonus add to the overall payout at the end of the plan. Also, all details of reversionary bonus percentages are declared to the public each year, so policyholders know how much bonus they will be receiving through simple additions. This helps to receive much better returns to the policyholder.
*Availing Tax Benefits
This is one of the key features of retirement plans; they offer significant tax benefits. For deductions done towards payment of premium of retirement plans, benefits are available under Section 80C and 80D of the Income Tax Act. Pension schemes qualify for special benefit under the Section 80CC of the Income Tax Act. The withdrawals done from these products are exempt from taxation under Section 10 (10D) of the Income Tax Act.
*Guaranteed payouts:
Pension plans are guaranteed payout to the policyholder unlike ULIPs plans where the amount of payout is not certain. Pension received to the policy holder can be monthly, quarterly, Half yearly or yearly depend on the mode, the pensioner select while taking the pension plan.

Pension Plans FAQ's

*What is pension plan?
Pension plan offers the dual benefits of insurance and investment. In this plan, the policyholder regularly pays premium to the insurance company to build up corpus over the time. On maturity, this corpus is repaid to the policyholder in the form of regular income. However, in case the insured dies within the policy tenure, the nominee will be entitled to get the sum assured along with bonus.
*What is the accumulation phase?
When a person invests money in an annuity for the purpose of providing income for retirement they are at the accumulation period of the annuity's lifespan. The more invested during the accumulation phase, the more will be received during the annuitization phase.
*What is an annuity?
An annuity is the regular income or pension paid to the policyholder.
*What are the charges to be paid for paying premiums through net-banking/phone-banking?
Bank don’t charge anything from the policyholders.
*Why should I buy pension plans?
Nowadays, due to rising living cost, retirement plans have become an important part of financial planning. Pension plans offer dual benefits of insurance and investment, so that the policyholder continue enjoying his post retirement.
*What are the different options to pay premium of pension plan?
You can pay premiums monthly, quarterly, half yearly or yearly. Also it is possible to pay in one lump sum amount.
*Why should I buy pension plan when I already have a provident fund or National Pension Scheme?
Yes, you should buy pension plan even though you have a provident fund account or National Pension Scheme The rising inflation will make your PF or NPS amount relatively insufficient. As you grow old, you become more vulnerable to different ailments and it means an increase in your medical expenses. It is not a great idea to rely only on provident fund account or NPS to meet your rising lifestyle needs.
*If I fail to pay the premium of pension plan on time what will happens?
There is a grace period of 15-30 days which every insurance company gives once your premium is overdue. But if you do not pay premium within the grace period also your policy may get lapsed and you can surrender your policy.

"Successful Investing takes time, discipline and patience. No matter how great the talent or effort, some things just take time: You can’t produce a baby in one month by getting nine women pregnant."

By Warren Buffett

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Disclaimer: Insurance is the subject matter of solicitation. Mutual fund investments are subject to market risks. Please read all the scheme related documents carefully before investing.