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.
|Company Name||Plan Name||Type of Plan||Entry Age||Maturity Age||Policy Term||PPT|
|LIC||LIC's New Jeevan Shanti||Non-linked, Deferred Annuity||30-79 years||31-80 years||NA||Single|
|HDFC Life||HDFC Life Click 2 Retire||Market-linked||18-65 years||45-75 years||10-35 years||Regular, Limited, Single|
|SBI Life||SBI Life Saral Retirement Saver||Traditional savings||18-65 years||40-70 years||Max: 40 years||Regular, Single|
|ICICI Pru||ICICI Pru Easy Retirement||Market-linked||18-70 years||30-80 years||10-30 years||Regular, Limited|
|Max Life||Max Life Guaranteed Lifetime Income Plan||Immediate/Deferred Annuity|| Immediate Annuity: 0-80
Deferred Annuity: 45-80 years
|Bajaj Allianz||Bajaj Allianz Lifelong Goal||Market-linked||18-65 years||99 years||99 minus entry age||10 - 25 years|
|Kotak Life||Kotak Premier Pension Plan||Traditional savings||30-60 years||45-70 years||10-30 years||Regular, Limited, Single|
|ABSLI||ABSLI Empower Pension Plan||Market-linked||25-70 years||80 years||5-30 years||Regular|
|Tata AIA||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||IndiaFirst Life Guaranteed Annuity Plan||Deferred life Annuity||40-80 years||NA||NA||Single|
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).
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.
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.
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.
It is a participating, individual, non-linked, savings pension product. SBI Life Saral Retirement Saver helps policyholders create an income source during retirement.
ICICI Pru Easy Retirement helps provide a regular source of income to the Insured through investment opportunities in stocks.
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.
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.
Available online, Kotak Premier Pension Plan is a traditional, participating pension option for individuals looking to secure their retirement.
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.
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.
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.
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.
|Top Companies||Annual New Business Premium (Rs. in Crores)|
|Aditya Birla Sunlife||12140.23|
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
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.
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's tenure, and the insurer's 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's 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.
Yes, most pension plans in India allow for switching between funds or portfolios within the plan, subject to certain terms and conditions. Switching may attract charges or fees, and it is advisable to read the plan's terms and conditions carefully before opting for a switch.
If the policyholder stops paying premiums for a pension plan in India, the plan may lapse, and the benefits may be compromised. Some plans may offer a grace period if you miss paying the premiums, while others may allow for policy revival with additional charges.
The process of applying for a pension plan in India varies depending on the provider and the plan's features. Typically, one can apply for a pension plan online or through an agent, and the application process may involve submitting personal and financial details, choosing the investment strategy and tenure, and paying the first premium.
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Naval Goel is the CEO & founder of PolicyX.com. Naval has an expertise in the insurance sector and has professional experience of more than a decade in the Industry and has worked in companies like AIG, New York doing valuation of insurance subsidiaries. He is also an Associate Member of the Indian Institute of Insurance, Pune. He has been authorized by IRDAI to act as a Principal Officer of PolicyX.com Insurance Web Aggregator.