Top 10 Pension Plans

A Pension or Retirement Plan is an Investment option that helps in allocating savings towards building a corpus over a fixed tenure. To reap maximum benefits post retirement, you must invest regularly during your years of employment. A suitable Pension Plan helps you to beat inflation and assists you and your family in dealing with the needs during the post-retirement period.

At present, the Insurance sector in India offers some of the best Pension Plans for you to lead a financially secure life post retirement. For your convenience, we have listed Top 10 Pension Plans in India that should help you reach your goals.

List of Top 10 Pension Plans in India

• LIC's New Jeevan Shanti
• HDFC Life Click 2 Retire
• SBI Life Saral Retirement Saver
• ICICI Pru Easy Retirement
• Max Life Guaranteed Lifetime Income Plan
• Bajaj Allianz Lifelong Goal
• Kotak Premier Pension Plan
• ABSLI Empower Pension Plan
• Tata AIA Life Insurance Guaranteed Monthly Income Plan
• IndiaFirst Life Guaranteed Annuity Plan

Note: All details of the products have been sourced directly from the official websites of the Pension Plan providers. The list should not be construed as definitive, considering that benefits and Annuity payouts tend to vary per individual factors such as age, gender, income, Sum Assured / invested and market volatilities (in case of ULIPs).

Brief Description of Top 10 Pension Plans in India

This section provides information on the key features of each of the abovementioned Pension Plans. For further details, you can refer to plan brochures on the companies' websites or reach out to us at PolicyX.com.

1. LIC New Jeevan Shanti Plan

   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

   • By making a one-time investment, you can avail of a long-term source of income.
   • Policyholders can avail of add-on cover for dependent people with disabilities under the plan.
   • The plan offers a discount on Annuity rates.
   • Policyholders can choose from four Annuity modes- monthly, quarterly, half-yearly, and annually.
2. Know More About: LIC New Jeevan Shanti Plan

3. HDFC Life Click 2 Retire 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 to meet the post-retirement needs.

   Key Features

   • The plan provides a death benefit that would be higher of the fund value or by 105% of the paid premiums.
   • The plan offers vesting benefits and no premium allocation charges can be imposed.
   • Policyholders can avail of tax benefits under section 80CCC of the Income Tax Act, 1961.

4. SBI Life Saral Retirement Saver

   It is a participating, individual, non-linked, savings pension product. SBI Life Saral Retirement Saver helps policyholders create an income source during retirement.

   Key Features

   • Corpus can be built with a simple reversionary bonus, added regularly throughout the policy term.
   • Life Cover can be availed with SBI Life - Preferred Term Rider.
   • Policyholders can avail of maturity as well as death benefits.
   • Policyholders can avail of tax benefits under section 80CCC of the Income Tax Act, 1961.

5. ICICI Pru Easy Retirement Plan

   ICICI Pru Easy Retirement helps provide a regular source of income to the Insured through investment opportunities in stocks.

   Key Features

   • The plan comes out with multiple payment frequency modes such as monthly, bi-annual, and annual. Premiums can be paid yearly, half-yearly or monthly.
   • The death benefit is equivalent to 105% of the total premiums paid.
   • With this pension policy, policyholders can reduce their taxable income.

6. Max Life Guaranteed Lifetime Income Plan

   The Max Life Guaranteed Life Income Plan is a traditional Pension Plan that assists policyholders in building a corpus towards a regular income post retirement.

   Key Features

   • The plan keeps on providing a pension until you and your spouse are alive.
   • In case of the death of the Insured, the plan provides the entire purchase price to the nominee.
   • You can receive a pension on a monthly, quarterly, semi-annually, or annually basis.
   • The plan offers six Annuity options.

7. Bajaj Allianz Lifelong Goal

   Bajaj Allianz Lifelong Goal is unit-linked, Whole Life Cover that helps in creating a savings corpus and earn income till the age of 99.

   Key Features

   • The plan offers guaranteed loyalty additions.
   • Policyholders are assured an income stream till 99.
   • Policyholders can also benefit from periodical return of Life Cover charges.
   • Policyholders can avail of Tax Benefits under Section 80C & 10(10D).

8. Kotak Premier Pension Plan

   Available online, Kotak Premier Pension Plan is a traditional, participating pension option for individuals looking to secure their retirement.

   Key Features

   • The plan offers guaranteed additions and accrued bonuses.
   • Policyholders can choose from multiple premium payment modes.
   • Assured benefit is calculated as 105% of total premiums paid on Death/Vesting.
   • Additional protection against accidental death and disability can be availed.

9. ABSLI Empower Pension Plan

   The Aditya Birla Sun Life Empower Pension is a unit-linked and a non-participating Pension Plan. The plan helps you to build a financial corpus for the post-retirement days.

   Key Features

   • The policy offers vesting benefits and additions on your Sum Assured.
   • The death benefit payable is calculated as the guaranteed Sum Assured or the policy fund value at inception, whichever is higher.
   • The plan offers a self-managed option that allows you to choose the desired fund option as per your risk appetite.

10. Tata AIA Life Insurance Guaranteed Monthly Income Plan

    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 offers monthly income for up to 288 months post retirement age.
    • Monthly income increases on paying a high premium amount.
    • Policyholders have the facility to avail loans against their policy.
    • Premiums can be paid annually, half-yearly, quarterly, monthly.

11. IndiaFirst Life Guaranteed Annuity Plan

    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

    • Return of Purchase Price facility can be availed on policyholder's death.
    • Joint Life Cover offers policyholders the option to support their loved ones under the cover.
    • Annuity amount grows constantly with the Escalating Life Annuity option.

Basis for Selection

The above mentioned Insurers have been selected on the basis of the highest income in terms of Annual New Business Premium.

The following table highlights these Insurers and the Premium Income generated by them in FY 2021-22.

To sum it up

While each plan comes with its own set of benefits, it is important that you identify what your needs are. If you are the sole earning member of your family right now, or you have certain debt obligations to fulfil, 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 volatilities, 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 fulfil your long-term goals. For more guidance on Pension Planning, visit