A pension or retirement plan is an investment option that helps allocate savings to build a corpus over a fixed tenure. To get the maximum benefits post-retirement, you must invest regularly during your employment years. A suitable pension plan helps you beat inflation and assists you and your family in dealing with your needs during the post-retirement period.
At present, the insurance sector in India offers some of the best pension schemes for you to lead a financially secure life post-retirement. For your convenience, we have provided a list of the top 10 pension plans in India that you can consider for investing.
We have curated a list of the best retirement plans in India for you to choose from based on various key metrics such as the market reputation of the company, creditworthiness, number of branch offices, customer support quality, etc.
Plan Name | Type of Plan | Entry Age | Maturity Age | Policy Term | Premium Payment Term |
---|---|---|---|---|---|
LIC’s New Jeevan Shanti | Non-linked, Deferred Annuity | 30-79 years | 31-80 years | NA | Single |
HDFC Life Click 2 Retire | Market-linked | 18-65 years | 45-75 years | 10-35 years | Regular, Limited, Single |
SBI Life Saral Retirement Saver | Traditional savings | 18-65 years | 40-70 years | Max: 40 years | Regular, Single |
ICICI Pru Easy Retirement | Market-linked | 18-70 years | 30-80 years | 10-30 years | Regular, Limited |
Max Life Guaranteed Lifetime Income Plan | Immediate/Deferred Annuity | Immediate Annuity: 0-80 Deferred Annuity: 45-80 years | 46-90 years | NA | Single |
Bajaj Allianz Lifelong Goal | Market-linked | 18-65 years | 99 years | 99 minus entry age | 10 - 25 years |
Kotak Premier Pension Plan | Traditional savings | 30-60 years | 45-70 years | 10-30 years | Regular, Limited, Single |
ABSLI Empower Pension Plan | Market-linked | 25-70 years | 80 years | 5-30 years | Regular |
Tata AIA Life Insurance Guaranteed Monthly Income Plan | Non-linked, Traditional | 6-60 years | 65-68 years | 5,8,12 years | 5,8,12 years |
IndiaFirst Life Guaranteed Annuity Plan | Deferred life Annuity | 40-80 years | NA | NA | Single |
This section provides information on the key features of each of the above-mentioned pension plans. For further details, you can refer to the plan brochures on the companies’ websites or reach out to us at PolicyX.com.
The LIC New Jeevan Shanti Insurance Plan is a non-participatory, non-linked, single premium payment plan that offers the benefit of returns through deferred annuity options. You can avail of this policy through online as well as offline mode. Under this plan, the payout modes of a deferred annuity are divided into two options - Joint Life Annuity and Single Life Annuity.
Key Features
Know More About- LIC’s New Jeevan Shanti Plan
The HDFC Life Click 2 Retire insurance plan is a unit-linked online insurance plan that offers market-based returns and also assists the insured in meeting post-retirement needs.
Let’s understand this plan with a simple illustration. Mr. Verma purchases HDFC Life Click 2 Retire for 20 years term for Rs. 15 Lakh Single premium, the plan would provide a fund value of Rs 45,17,751 at 8% p.a. illustrative value.
Assumed rate of return @ 8% p.a.- Rs 45,17,751
Assumed rate of return @ 4% p.a.- Rs 21,23,802
Key Features
It is a participating, individual, non-linked, savings pension product. SBI Life Saral Retirement Saver helps policyholders create an income source during retirement. You can also avail a life cover along with this plan with an SBI Term Insurance Rider.
Key Features
ICICI Pru Easy Retirement helps provide a regular source of income to the insured through investment opportunities in stocks. The whole risk in this plan is borne by the policyholders as the returns depend on the market performance of your investments.
Key Features
The Max Life Guaranteed Life Income Plan is a traditional pension plan that assists policyholders in building a corpus toward a regular income post-retirement. You can also avail a joint life cover to ensure that you and your spouse are protected under the same plan
Key Features
Bajaj Allianz’s Lifelong Goal is a unit-linked, whole life cover that helps in creating a savings corpus and earning income till the age of 99. This plan has two options to choose from: LongLife Goal II without Waiver of Premium & LongLife Goal II with Waiver of Premium.
Key Features
Available online, Kotak Premier Pension Plan is a traditional, participating pension option for individuals looking to secure their retirement. This plan offers you guaranteed bonuses which is the fixed percentage of the basic sum assured.
Key Features
The Aditya Birla Sun Life Empower Pension is a unit-linked and non-participating pension plan. The plan helps you to build a financial corpus for the post-retirement days. This plan also offers you guaranteed additions that increase your overall benefits.
Key Features
The Guaranteed Monthly Income Plan offered by TATA AIA is a non-participating, non-linked, individual life insurance savings option. It helps you create a financial net to fall back on in the future.
Key Features
It is a deferred life annuity plan, under which policyholders can pay a single premium and receive lifelong benefits. The plan allows policyholders to choose from 12 different annuity options per their needs.
Key Features
Buying a retirement or pension plan in India offers a range of benefits. Let’s understand these benefits in detail:
The above-mentioned insurers have been selected on the basis of the highest income in terms of Annual New Business Premiums.
The following table highlights these insurers and the premium income generated by them in FY 2022-23.
Top Companies | Annual New Business Premium (Rs. in Crores) |
---|---|
LIC | 474668.14 |
HDFC Life | 57533.42 |
SBI Life | 67315.6 |
ICICI Prudential | 39932.78 |
Max Life | 25341.19 |
Bajaj Allianz | 19461.43 |
Kotak Mahindra | 15320.46 |
Aditya Birla Sunlife | 15069.69 |
Tata AIA | 20503.5 |
India First | 6074.53 |
While each plan comes with its own set of benefits, you must identify what your needs are. If you are the sole earning member of your family right now, or you have certain debt obligations to fulfill, or your kids’ education to plan, the pension amount should be more than all your potential expenses combined.
While market-linked investment options incur higher purchase prices, these plans are more likely to guarantee a larger corpus. However, if you are averse to risks and wish to remain protected from market volatility, a traditional savings/annuity plan is a good place to start.
The foremost factor, however, should be to lead a life without financial obligations post-retirement and the best option is the one that manages to fulfill your long-term goals. For more guidance on pension planning, visit PolicyX or call us at 1800-420-0269.
Investing in the best pension plan can provide several benefits, including tax savings, long-term wealth built-up, and financial security during retirement. Pension plans can also be customized to meet individual needs and preferences, and some programs offer additional benefits such as accidental death coverage or loan facilities also.
Pension plans are a type of life insurance plan that offers the dual benefit of insurance and investment. They offer a fixed percentage of income after retirement.
While choosing the best retirement plan, one should consider factors such as the expected returns, the fees and charges associated with the plan, the investment amount and frequency, the plan tenure, and the insurer track record. One should also assess their retirement goals to choose a plan that best suits their needs.
Yes, individuals can invest in multiple pension plans in India, subject to certain limits and regulations. Investing in various plans can help diversify investment plans and reduce the overall risk of the individual.
The amount one should invest in a pension plan in India depends on retirement goals, risk tolerance, and income level; the actual amount may vary depending on individual circumstances.
Yes, most pension plans in India allow for partial or complete withdrawal before maturity, please check for certain terms and conditions. However, early withdrawal may attract penalties or fees and may also affect the expected returns. It is advisable to read the terms and conditions of the plan carefully before opting for early withdrawal.
In the event of the policyholder’s death, the pension plan is typically paid out to the nominee or legal heirs as per the terms and conditions of the plan. Some plans even offer additional benefits such as accidental death coverage or guaranteed payouts to the nominee in case of the policyholder’s death.
The minimum age requirement to invest in a pension plan in India varies depending on the provider and the type of plan. The minimum age requirement is typically 18 years, but some providers may have higher age limits.
The minimum investment amount for a pension plan in India varies depending on the provider and the plan features. Some plans may have a minimum investment amount as low as Rs. 500 per month, while others may require a lump sum investment of Rs. 1 lakh or more.
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