PDF Archive

Why and How to Choose a
Retirement Plan

What is Pension Plan
Pension plan is exactly offered by life insurance companies
which helps to individuals plan effectively and carefully for
their retirement age. It gives a regular income to individuals
in their golden time and give chance to live a happy life with
their loved one, it also cover risk in case of unfortunate event.
At very early age it would be very good if you planned for any
Annuity or pension plan and start invest money in retirement
Plans. The benefits are different for every insurance company,
You need to compare a single plans of every insurance provider
And choose the best one which suit you.

Different Pension Plans
1. Traditional Plans- In which the plans benefit on retirement is
determined by a set use of formula, it does not depend on investment
returns. The amount of payout is almost guaranteed, It also called defined
benefits (DB). If you are completely risk averse, it maybe better go with
traditional based pension plans.

2. ULIP Pension Plan- In which the some part of amount paid as premium
every year and known as long term retirement or investment plans. These
are market-linked pension products which are offered by life insurance
companies. The purpose of these plans is provide to health and life cover
and a minimum guarantee of 4.5 percent. If your investment horizon is for
long years like 10 or more, it may suggested to go with the ULIP based
pension products.

It designed to helps
Employees save money
For retirement

It guarantee that the
Employee will get an
amount of benefits
Once he or she retires

Why
Pension Plan

In case of eventuality
Event, the nominee will
Receive the sum assured
Amount + the bonus and
Addition If any

Up to the one third of
Paid premium is tax free
Under the section 80CCC

Why Pension Plan is Necessary
•
•
•
•
•
•

Increase in life expectancy
Shortfall in Employer Funded Pension
Change of social structures
Lack of social security system
Desire to remain contributor
Rest and relaxation

Government Retirement
Schemes
•
•
•
•
•

Atal Pension Yojana
Mutual Funds ELSS
Pradhan Mantri Jan Dhan Yojana
National Pension Scheme
Public Provident Fund (PPF)

Pension Schemes By Others
•
•
•
•
•
•
•

Reliance Smart Pension Plan
HDFC Life Pension Super Plan
LIC Jeewan Akshay VI
SBI Life- Saral Pension
Bajaj Allianz Retire Rich
BSLI Empower Pension- SP Plan
LIC New Jeevan Nidhi

Short Term Savings Options
•
•
•
•

Post Offices Deposit
Government Bonds
Mutual Funds
Bank Fixed Deposit

Long Term Savings Options
•
•
•
•

Public Provident Fund (PPF)
Life Insurance Policies
Long Term Bank Deposit (FDs, RD,s)
Investment in Gold