A pension plan or retirement plan is an investment option that helps in allocating savings to build a corpus over a fixed tenure. Under pension plans, you have to invest regularly during your employment years to reap benefits once you get retired.
It assists with a steady and regular source of income during post-retirement days. A suitable retirement plan will help you to beat the growing inflation rate and it will also assist you and your family to deal with the needs of the post-retirement period.
So, are you looking forward to a happy and relaxed retirement life? Well, you don’t have to worry about the same. Check this article to find out the top 10 pension plans in India that you can consider.
Note: All details of the products have been sourced directly from the official websites of the pension plan providers. Below mentioned plans are selected on the basis of coverage and policy tenure.
List of the Top 10 Pension Plans in India
- SBI Life Saral Pension Plan
- HDFC Life – Click 2 Retire
- HDFC Life – Assured Pension Plan
- ICICI Pru – Easy Retirement
- Reliance – Smart Pension
- Bajaj Allianz – Pension Guarantee
- Max Life Guaranteed Lifetime Income Plan
- Birla Sun Life Empower Pension
- LIC Jeevan Akshay 6 Pension Plan
- Jeevan Nidhi Pension Plan of the LIC
1. SBI Life Saral Pension Plan
The SBI Life Saral Pension Plan is a non-linked, participating and traditional individual plan that provides protection to you against market volatility. It offers a guaranteed bonus for the initial 5 years.
- Pay guaranteed premiums for the initial 5 years. For the initial three years, it is 2.5% of the sum insured and 2.75% of the sum insured for the rest of the years.
- The minimum tenure of this policy is 10 years and the maximum is 40 years.
- To invest in this plan, the minimum premium that you have to pay is Rs 7,500 per year whereas there is no limit for the maximum.
- The minimum entry age is 18 years and the maximum is 65 years.
- The minimum sum assured is Rs.1 lakh without any upper limit. Know More
2. HDFC Life Click 2 Retire
The HDFC Life – Click 2 Retire Plan is basically a unit-linked online insurance plan that offers market-based returns and also assists the insured to meet the post-retirement needs. This plan is available at affordable premium rates.
Features and Benefits
- The plan comes out with the benefit of pension plans along with market-linked returns.
- Minimum entry age is 18 years and the maximum is 65 years.
- The plan provides a death benefit that would be higher of the fund value or by 105% of the paid premiums.
- The minimum maturity age is 45 years and the maximum is 75 years.
- You will receive tax benefits under section 80C and 10 (10A) of the Income Tax Act of 1961.
3. HDFC Life Assured Pension Plan
The HDFC Life – Assured Pension Plan is again a unit-linked pension plan that provides market-based returns and loyalty add-ons that assist policyholders to meet the desired pension goals.
- The plan offers guaranteed vesting benefits along with market revenues.
- The plan provides loyalty additions from the eleventh year of the policy.
- The minimum age to invest in this plan is 18 years and the minimum maturity age is 45 years.
- The plan comes out with unique and limited payment options.
- The plan provides death benefits to the nominee that would be the higher of fund values or 105% of the previously premiums paid.
- Receive tax benefits under section 80C and 10 (10D) of the Income Tax Act of 1961.
4. ICICI Pru – Easy Retirement
ICICI Pru – Easy Retirement is one of the popular pension plans that provides a steady income to the insured when his/her salary ends after retirement by making an investment in stocks. This plan offers long-term returns and protects the insured against market volatility.
- The minimum premium amount that you have to pay is Rs.48,000 per year.
- The plan comes out with multiple payment frequency modes such as monthly, biannual, and annual.
- The minimum age to get insured under this plan is 35 years and the maximum is 70 years.
- The policy is available for 10, 15, 20, 25, and 30 years.
- Under this pension policy, the minimum maturity age is 45 years and a maximum of 80 years.
- The plan offers tax benefits on premiums and benefits as well. Know More
5. Reliance – Smart Pension
The Reliance Smart Pension Plan is a unit-linked and non-participatory pension plan that helps you to save systematically. It allows you to build a lump sum systematically which can provide regular income after retirement.
- You can choose a policy tenure of 10 and 30 years.
- The plan provides double benefit with the help of equity participation and capital guarantee.
- Under this plan, you will receive guaranteed loyalty additions.
- The minimum maturity age is 45 years and a maximum is 75 years.
- Avail tax benefits under section 80C and 10 (10A) of the Income Tax Act of 1961.
6. Bajaj Allianz – Pension Guarantee
The Bajaj Allianz Pension Guarantee Plan provides a regular income and immediate annuity benefits to you during the post-retirement period.
- The plan provides six pension options to choose from.
- The minimum age to insure yourselves under this plan is 37 years and the maximum is 80 years.
- The minimum purchase price is Rs 25,000 whereas there is no limit for the maximum.
- By investing in this plan, the minimum pension that you can receive is 1,000 rupees (monthly).
- The plan allows you to extend the pension to the spouse as well.
7. Max Life Guaranteed Lifetime Income Plan
The Max Life Guaranteed Life Income Plan is a traditional pension plan that assists the policyholder with a regular income after retirement.
- 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 pension on a monthly, quarterly, semi-annually, or annually basis.
- The plan offers four annuity options.
- You can also opt for a one-time lump sum payment to invest in the policy.
8. Birla Sun Life Empower Pension
The Birla Sun Life Empower Pension is a unit-linked and not a participating pension plan. The plan assists you to build a financial corpus for the post-retirement days.
- The policy tenure of the plan varies between 5 and 30 years. The maximum retirement age is 80 years.
- The minimum entry age is 25 years and the maximum age is 70 years.
- The plan provides regular premium paying options.
- The plan offers a self-managed option that allows you to choose the desired fund option as per your risk appetite.
- You can avail tax benefits under section 80C of the Income Tax Act.
9. LIC Jeevan Shanti
LIC Jeevan Shanti Plan is a non-linked and non-participating single premium annuity plan that provides the dual benefits of return through an immediate or deferred annuity. You can invest in the plan through the online mode. Under this plan, the payout modes of immediate and deferred are further divided into several options. Each of such options carries its own unique set of benefits.
- By making a one-time investment in this plan, you will get guaranteed life long income.
- The plan offers 9 different annuity options to choose that suits multiple needs of customers.
- The plan allows you to choose the Immediate Annuity option or postpone it to a future date as Deferred Annuity.
- The plan provides guaranteed additions during the deferment period.
- This policy can be taken on own life or as joint life with grandparent, parent, children, grandchildren, spouse or siblings.
- The loan facility will be available after completion of 1 policy year. Know More
10. Pradhan Mantri Vaya Vandana Yojana
Pradhan Mantri Vaya Vandana Yojana is a pension scheme which is specifically designed for senior citizens by the government of India. It is a great plan for senior citizens as it provides an assured return of 7.4 per cent per annum. The interest rate will keep varying depending on the financial year in which the investment is made. The scheme can be purchased online through Life Insurance Corporation of India as they have been given sole rights to operate it.
- There is no maximum age to invest in this plan.
- Under this plan, you will receive the maturity benefit.
- The scheme can be purchased by paying a lump sum amount ranging from INR 1.5 lakhs to INR 7.5 lakhs (maximum) for monthly pension.
- Pension payment would be made through NEFT or Aadhar card linked payment systems. Know More
Sum it up
There are numerous options for the pension plan in India. You are allowed to choose the desired one as per your needs for a secured future. Such pension plans help you with financial independence through which it will become quite easier for you to enjoy the golden period of your life. So, don’t wait and invest in an appropriate pension plan today to safeguard your future.