Best Retirement Plans Available in India

LIC New Jeevan Shanti Plan

The LIC New Jeevan Shanti Plan is a non-participatory, non-linked, single premium payment plan that offers the benefit of returns through Deferred Annuity options. This is one of the best pension plans offered by LIC, the most trusted insurance company in India. You can avail of this policy through both online and offline modes.

Key Features

The plan allows for a minimum purchase price of Rs. 1.5 lakhs with no upper limit. Fixed annuity rates are determined from the inception of the policy. Policyholders can choose from four annuity modes: monthly, quarterly, half-yearly, and annually. Additionally, there is a discount on annuity rates and an option to add cover for dependents with disabilities.

Benefits

The LIC New Jeevan Shanti Plan offers regular income for a fixed period, with a guaranteed monthly income for life after a lump sum payment. Policyholders also benefit from the return of the purchase price on maturity, loan facilities, and tax benefits under Section 80C of the Income Tax Act.

LIC Jeevan Akshay 7 Plan

The LIC Jeevan Akshay 7 Plan is a traditional Non-Linked, Non-Participating, and Immediate Annuity Plan offered by LIC. It provides guaranteed returns on your investments, ensuring a substantial fund for your retirement life. This plan offers fixed annuity rates from the inception of the policy and includes 10 annuity options that cannot be changed once chosen.

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Key Features

The plan allows for fixed annuity rates from the start and offers 10 different annuity options. These options provide flexibility but must be selected carefully as they cannot be altered later.

Benefits

The LIC Jeevan Akshay 7 Plan ensures a secure monthly income for life after retirement. It also offers financial protection for your family in case of your death and provides tax benefits under Section 80C of the Income Tax Act.

Eligibility

Additional Features

The plan includes a life cover benefit during the premium payment term and optional riders for additional benefits. It also offers a loan facility and the option to choose different income payment frequencies.

SBI Life Saral Retirement Saver

SBI Life Saral Retirement Saver is a participating, individual, non-linked, savings pension product designed to help policyholders create a reliable income source during retirement. It allows you to build a retirement corpus for continuous income flow during your retirement period. The plan also provides assured protection to your family in case of any mishappening.

Key Features

The plan guarantees simple reversionary bonuses throughout the policy term. Additionally, policyholders can avail of maturity as well as death benefits. An optional life cover rider, SBI Life – Preferred Term Rider, can also be added for enhanced protection.

Benefits

The plan offers financial security throughout your retirement, protection against market fluctuations, and the potential for additional income through loyalty bonuses. Policyholders have the flexibility to choose the timing and type of annuity payouts.

HDFC Life Click2Retire

HDFC Life Click2Retire is a unit-linked online insurance plan that offers market-based returns and assists the insured in meeting post-retirement needs. HDFC Life is highly trusted in the insurance market for its retirement plans. This plan provides full life coverage to the policyholder and helps in meeting the post-retirement requirements of the customer and their family.

Key Features

The plan provides a death benefit that would be higher of the fund value or 105% of the paid premiums. It also offers vesting benefits and no premium allocation charges can be imposed. Additionally, it gives the policyholder the feature of an Assured Vesting Benefit.

HDFC Life Assured Pension Plan

The HDFC Life Assured Pension Plan is a market-linked ULIP plan designed for post-retirement planning. It offers the dual benefit of Assured Vesting Benefit and the potential to gain from market rises. This plan is ideal for those planning their retirement early and looking for higher returns through unit-linked investments.

Key Features

The plan provides the policyholder with the dual advantage of Assured Vesting Benefit and the opportunity to benefit from market growth. Additionally, it offers more rider benefits to secure the future in case of any mishap.

Investment Risks

In this policy, the investment risks in the investment portfolio are borne by the policyholder. This means that while there is potential for higher returns, there is also a risk associated with market fluctuations.

Ideal For

This plan is particularly suitable for individuals who are planning their retirement early and are looking for a structured way to build their retirement corpus through market-linked investments.

ICICI Pru Easy Retirement

ICICI Pru Easy Retirement helps provide a regular source of income to the Insured through investment opportunities in stocks. The plan comes out with multiple payment frequency modes such as monthly, bi-annual, and annual. Premiums can be paid yearly, half-yearly, or monthly. The death benefit is equivalent to 105% of the total premiums paid.

Key Features

The plan offers a non-linked guaranteed pension plan with a monthly income for life after a chosen premium payment term (5, 10, or 15 years). It includes a maturity benefit of 100% of the sum assured and a life cover benefit during the premium payment term. Optional riders for additional benefits are also available.

Premium Payment Term

The premium payment term can be regular or single, providing flexibility to the policyholder. Assured Vesting Benefit is also available, and you can top up the sum assured of your policy with any amount.

Tax Benefits

Tax benefits are available under Section 80C and Section 10(D) of the Income Tax Act, making it a tax-efficient investment option for retirement planning.

Bajaj Allianz Life LongLife Goal

Key Features

Bajaj Allianz Life LongLife Goal is a unit-linked, whole life cover plan that helps in creating a savings corpus and earning income till the age of 99. The plan offers guaranteed loyalty additions and an assured income stream till 99. Policyholders can also benefit from the periodical return of life cover charges and avail of tax benefits under Section 80C & 10(10D).

Premium Payment Term

The premium payment term ranges from 10 to 25 years, with the flexibility to choose the frequency of payments—yearly, half-yearly, quarterly, or monthly.

Investment Options

The plan offers a choice of investment funds with varying risk-return profiles, providing the potential for higher returns than traditional pension plans. Policyholders also have the flexibility to switch investment funds.

Additional Benefits

Partial withdrawals and surrender options are available, along with a guaranteed minimum maturity and death benefit. The plan also includes a return enhancer, adding to its attractiveness as a retirement solution.

Bajaj Allianz Life Pension Guarantee Plan

The Bajaj Allianz Life Pension Guarantee Plan is a non-linked retirement plan offering guaranteed monthly income for life after a chosen premium payment term (5, 10, or 15 years). This plan ensures a steady income stream throughout your retirement.

Key Features

The plan provides multiple annuity options depending on your lifestyle and goals. You also get the choice to postpone your annuity.

Benefits

The plan offers a regular income stream for retirement or other needs, financial security for your loved ones in case of your death, and tax benefits under Section 80C of the Income Tax Act.

Premium Payment Terms

Additional Benefits

The plan includes a waiver of premium benefit on death and a maturity benefit of 100% of the sum assured.

Max Life Guaranteed Lifetime Income Plan

The Max Life Guaranteed Lifetime Income Plan is a traditional pension plan designed to provide policyholders with a regular income post-retirement. This non-linked annuity plan ensures a guaranteed income stream for life after a single premium payment.

Key Features

The plan offers a choice between Single Life Annuity and Joint Life Annuity, allowing you to receive payouts for yourself or for both you and your spouse. Additionally, you can opt for an immediate annuity to start receiving income right away or a deferred annuity to begin payments at a future date. The plan also provides financial protection for your family, as the nominee receives the purchase price in case of the insured’s death before the annuity starts.

Tax Benefits

Policyholders can enjoy tax deductions on premiums paid under Section 80C of the Income Tax Act, making this plan not only a secure investment but also a tax-efficient one.

Kotak Premier Pension Plan

The Kotak Premier Pension Plan is a traditional, participating pension option available online, designed for individuals aiming to secure their retirement. This plan ensures a regular income and lifelong benefits for post-retirement life. Policyholders can benefit from guaranteed additions and accrued bonuses.

Key Features

The plan offers multiple premium payment modes, including annually, semi-annually, quarterly, and monthly. Additionally, the premium payment term can be chosen as Single Pay, Regular Pay, or Limited Pay. An assured benefit is calculated as 105% of total premiums paid on Death/Vesting.

Tax Benefits

Enjoy tax deductions on premiums paid under Section 80C of the Income Tax Act. This makes the plan cost-effective while providing a predictable income stream for retirement and protection against outliving your savings.

Annuity Options

The plan offers the flexibility to choose between an immediate or deferred annuity, allowing policyholders to receive income immediately or defer it for later.

Conclusion

In conclusion, selecting the best retirement plan in India is a crucial step towards ensuring a financially secure and comfortable post-retirement life. The various plans available offer a range of benefits, including long-term savings, tax advantages, and customizable investment options. By carefully considering factors such as expected returns, fees, investment amounts, and individual retirement goals, one can choose a plan that best suits their needs. With the right plan, individuals can look forward to a peaceful and stress-free retirement, supported by a steady flow of income and financial protection for their families. Investing in a well-chosen retirement plan today can pave the way for a fulfilling and worry-free future.

Frequently Asked Questions

What are the benefits of investing in a retirement plan in India?

Investing in a retirement plan in India provides several benefits such as tax savings, long-term wealth accumulation, and financial security during retirement. Additionally, some plans offer extra benefits like accidental death coverage or loan facilities.

Can I invest in more than one pension plan in India?

Yes, you can invest in more than one pension plan in India. Diversifying your investments can help you maximize your retirement corpus and reduce risk.

How do retirement plans in India offer financial security?

Retirement plans in India offer financial security by ensuring a steady flow of income post-retirement. These plans help you build a substantial corpus over time, which can be used to meet your financial needs during retirement.

What should I consider while choosing the best retirement plan?

While choosing the best retirement plan, consider factors such as expected returns, fees and charges, investment amount and frequency, plan tenure, and the insurer’s track record. Assess your retirement goals to choose a plan that best suits your needs.

Are there any tax benefits associated with retirement plans in India?

Yes, retirement plans in India offer tax benefits under Section 80C and Section 10(10D) of the Income Tax Act. These benefits can help you save on taxes while building your retirement corpus.

Can retirement plans be customized to meet individual needs?

Yes, many retirement plans in India can be customized to meet individual needs and preferences. Some plans offer additional riders like critical illness or disability coverage to enhance the plan’s benefits.