Make a smooth and relaxed move to your annuity days without worrying about your future requirements with well-designed pension plans. With greater than before life span of people in India, it is really difficult to enter the phase of superannuation after a long journey of your working career.
Thus, it is always wise to start your retirement planning a lot earlier than your actual retirement. No matter how secure you feel today you must start building up enough corpuses for your superannuation days. Being a retiree in India, you not only need to take care of your basic needs at retirement but you would also need to fight against the ever increasing inflation and the rising costs of basic stuffs.
Why You Need a Pension Planning in India?
- To Meet Future Requirements – The pension obtained from your job will not be enough to meet the growing requirements of your old age in India. You have to consider making your own savings to cope the rising needs of your age. Since there is no old age security benefit in India, it is wise to secure enough money for your own to enjoy your retirement phase.
- Cope Increasing Inflation Rate – Good pension plans are required in the present scenario of India even more than ever. Considering the shifting paradigm of Indian economy, you should start saving money and building up wealth to cope the increasing inflation rates. Remember, even when the official inflation rate showed negative growth, the price of basic things was still rising.
- Family Liabilities – Retirement does not lower your family liabilities. It is not only about meeting needs for yourself but also about your family responsibilities. Prudent pension plans can easily take care of your liabilities without compromising your dreams.
Factors Leading to a Successful Annuity Plan
- It is never very early to initiate your retirement planning. The earlier you instigate saving for your post retirement days, more corpus you can accumulate by the time of superannuation phase.
- Try investing in high return investment plans that allow you to build up wealth. The unit linked plans and the mutual funds offer the best solution for higher returns.
- Make some long term investments to save money as well as to receive a big amount on maturity.
Various Kinds of Pension Plans in India
Make your post retirement days beautiful and stress-free by investing in various kinds of pension plans available in India. Long term plans and the investments that allow regular flow of money are the best annuity options you should look for.
- PPF Account – PPF account is the best device to multiply your money along with the privilege of EEE tax status. It offers a modest rate of interest (7.6 percent) considering the present scenario and a long term investment solution of 15 years as well. What makes it more alluring instrument is that you can enjoy full benefit of section 80C of income tax deduction i.e. ₹1lakh and 50 thousand every financial year. On the top of it, PPF allows complete tax exemption on the money you invest and the sum you receive at maturity.
- NPS – National Pension System being a government aided scheme, it allows you to raise your assets as part of pension plans. 10 percent of the salary has to be contributed to NPS is mandated for government employees. The government contributes similar amount with your contributed amount to build up a handsome amount by the time of your retirement. However, the private sector employees are also allowed to make investments in NPS.
- Deferred Pension Plans – You can now purchase various kinds of pension schemes from reputed investment and insurance companies like HDFC, Reliance, LIC, SBI Life, Bajaj Allianz and so on. A deferred annuity schemes offer the privilege of life coverage and permit you to raise your wealth either by single investment of a lump sum amount or by regular contribution. On the completion of the term you will start receiving pension.
- Life Long Pension Plans – In these annuity plans you will receive the pension amount till your death. You may add on pension payment for spouse as well in which your spouse will receive the pension after your demise.
- Atal Pension Yojana – This superannuation scheme by the government of India allows a fixed pension ranging between ₹1 thousand to ₹5 thousand every month once you attain the age of 60yrs. The pension amount will be decided by the amount you invested in the plan. However, public sector employees are not qualified to receive government contribution under this plan.
- Instant Pension – In these schemes, the pension starts instantaneously after the inception of the plan. However, no life coverage facility can be availed in this plan. The investor just needs to invest lump sum money to this scheme. Pension amount will be decided by the total invested sum. Furthermore, enjoy tax benefits offered by this pension scheme. On death of the pensioner, beneficiary will receive the amount.
- Pension Certain Plan – In this plan the pensioner receives pension only for a definite span of time. The pensioner is free to choose the number of years he wants to receive the pension amount. In case of demise of the pensioner before the completion of the term, the beneficiary is permitted to receive the remaining payments.