When you’re a senior citizen, there are several essential services that the government offers you for free. However, if you wish to spend your golden years without any financial constraints, you must work towards building a corpus today. In fact, considering evolving aspects of an economy, such as inflation also make it a must for you to have a pool of funds post retiring.
Now, the question is how you can do that. Whether it’s an investment that will help or an insurance that will give you coverage. Well, if you wish to secure your golden years, finding the best pension plan in India is crucial. Let’s take you through this quick guide to help you with the same.
Understanding What are Pension Plans
In simple terms, consider the best pension plan in India to be a financial instrument that has been specifically designed for your golden years. This investment will result in offering you a regular income stream once you’re retired. This income source is really helpful in maintaining your desired lifestyle and enjoying financial independence in your later years.
Finding Your Best Pension Plan in India
There are various plans available in India, each with its unique features and benefits. Here are some of them for you to explore:
| Type of Plan | Life Insurance Coverage | Return Type | Investment Flexibility | Liquidity | Tax Benefits |
| PPF | The purpose of investing in PPF is different from that of life insurance. It is for saving more funds in the long term. | The rate of interest is fixed here, and it is set by the government. While providing stability, it helps you gain clarity over the estimates of your retirement funds. | Under this investment plan, there’s nothing much to change, as you’re paying a fixed amount for a fixed tenure. | You may consider a PPF a pension plan. While it locks in your investments for 15 years, some companies may offer partial withdrawals every 5 years. | PPF is a popular option for those planning for a pension and looking for amazing tax benefits. The Income Tax Act of 1961 exempts premiums paid, maturity benefits, and even interest earned. |
| Deferred Annuity Plan | Deferred annuity plans focus on building a financial safety net for your golden years. They may or may not have insurance coverage. | This pension plan in India comes with a guaranteed maturity benefit and potential bonus interest. It’s a smart way to balance between stability and the possibility of higher returns. | This is a corpus that you build by starting early and as funds keep accumulating. You have the flexibility to choose an annuity option best suited to your requirements. | Funds will remain locked in until you choose an annuity option at maturity. | Tax benefits are on premiums paid, but it depends on which specific plan you have. |
| ULIPs | Investing in ULIPs is one of the ways to secure the best pension plan in India. They combine two saving components: investment opportunities and life insurance protection. | They are market-linked, meaning the return on investment may fluctuate based on the fund’s performance. This also means greater risk but with equal chances of higher-than-expected returns. | ULIPs are flexible pension schemes. They have a variety of equity and debt fund options to choose from. Some ULIPs, during the investment period, allow you to switch between different funds. | There might be charges applicable for withdrawing early, but still ULIPs offer more liquidity compared to a few other plans. | ULIP can be the best pension plan in India as it offers tax benefits along with the twofold benefit of investment and insurance. |
Tips for Enjoying a Secure Future
- Start Early: The concept of compound interest was popular in school days, but you can leverage the benefits of knowing it today. Investing early in the best pension plan in India helps you secure extra funds as it keeps accumulating.
- Invest Regularly: Set up an investment plan that renews each year for your golden years. This will help you ensure consistent contributions towards your retirement.
- Review and Rebalance: While discussing your retirement years, you must keep track of your investment’s performance.
Secure the Best Pension Plan in India Today!
Pension is a critical aspect of your golden years. While you may think it’s only about the funds, this planning and investment will help you secure your finances and well-being post-retirement. However, to secure the best plan, you must explore the options, and that too with a trusted insurance provider.
Their variety of online plans will leave you amazed and help secure the best pension plan in India. While each of them has distinctive features, some of them are Guaranteed Income4Life Plan, Invest 4G Plan, etc. Explore online pension and insurance plans on Canara HSBC Life Insurance and take charge of your golden years today!