Pension plans for NRIs are financial instruments designed to help them accumulate funds for retirement. NRIs can contribute a portion of their earnings to these plans during their working years. The contributions are invested, generating returns over time to build a pool of funds that supports their retirement income needs.
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A pension plan is one of the best investment options for NRIs, offering a secure future by building a substantial corpus through lump sum or regular premium payments. This ensures NRIs have a guaranteed steady income stream during retirement, supporting their financial needs post-employment.
Consistent contributions to a pension plan over one's working years empower NRIs to construct a significant fund, addressing their financial necessities during retirement and beyond.
Here are some of the best pension plans in India available in the market.
| Insurer Name | Plan Name | Entry Age | Policy Term (PT) | Minimum amount to Invest (yearly) |
| Aditya Birla Life | Wealth Secure Plus | 18-45 Years | 100 Years – Entry Age | Rs. 33,600 p.a. |
| Bajaj Allianz Life | LifeLong Goal II | 18 – 65 years | 99 Years – Entry Age | Rs. 25,000 p.a. |
| Bajaj Allianz Life | Guaranteed Pension Goal II | 45 - 84 Years | 100 Years – Entry Age | Rs. 12,000 p.a. |
| Canara HSBC Life | Promise4Growth - Life | 18 – 60 years | 100 Years – Entry Age | Rs. 12,000 p.a. |
| HDFC Life | Click 2 Wealth | 18 – 60 years | 100 Years – Entry Age | Rs. 12,000 p.a. |
| HDFC Life | Smart Pension Plan | 25 - 70 Years | 5 to 55 years | Rs. 30,000 p.a. |
| ICICI Prudential Life | Signature | 18 – 60 years | 99 Years – Entry Age | Rs. 60,000 p.a. |
| ICICI Prudential Life | Signature Pension | 25 - 65 Years | 20 to 55 Years | Rs. 60,000 p.a. |
| ICICI Prudential Life | Guaranteed Pension Plan Flexi | 40 - 70 Years | 100 Years – Entry Age | Rs. 12,000 p.a. |
| Kotak Life | e-invest Retire Rich | 18 – 50 years | 99 Years – Entry Age | Rs. 12,000 p.a. |
| Max Life | Online Savings Plan | 18 – 60 years | 10 to 67 Years | Rs. 24,000 p.a. |
| Max Life | Flexi Wealth Advantage Plan | 18 – 50 years | 100 Years – Entry Age | Rs. 24,000 p.a. |
| Max Life | Guaranteed Lifetime Income Plan | 45 - 80 Years | 100 Years – Entry Age | Rs. 12,000 p.a. |
| PNB MetLife | Goal Ensuring Multiplier | 18 – 55 years | 39 to 99 years | Rs. 18,000 p.a. |
| Tata AIA Life | Smart Fortune Plus - Wealth Secure | 18 – 60 years | 100 Years – Entry Age | Rs. 12,000 p.a. |
Disclaimer: †† Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is done in alphabetical order (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer. The tax benefit is subject to changes in tax laws. *Standard T&C Apply
As an NRI planning for retirement in India, you have several pension options to consider.
Let's explore these pension funds in detail:
| Pension Plans | Description |
| Deferred Annuity |
|
| Immediate Annuity |
|
| Annuity Certain |
|
| Guaranteed Period Annuity |
|
| Life Annuity |
|
| National Pension Scheme (NPS) |
NRIs can use the NPS Calculator to easily calculate potential returns from the scheme. |
| Pension Funds |
|
| Whole Life ULIPs |
|
| Defined Benefit |
|
| Defined Contribution |
|
| SBI Life Insurance |
|
| Pension Plans Available in the UK | |
| State Pension |
|
| Workplace Pension |
|
| Personal Pension |
|
Benefits of buying the best Pension Plans online for NRIs:
Retirement Security: Pension plans provide NRIs with a secure source of income during retirement, ensuring financial stability.
Tax Efficiency: Pension Plans for NRIs offer tax benefits, helping them to optimize their savings and reduce their tax liabilities.
Currency Diversification: Pension plans allow NRIs to diversify their assets by investing in different currencies, potentially mitigating currency risk.
Long-Term Growth: Pension plans offer opportunities for long-term growth through investments in various assets, helping NRIs build wealth over time.
Flexibility: Some pension plans provide flexibility in contributions and withdrawals, allowing NRIs to adapt to changing financial needs and circumstances.
Convenience: NRIs can conveniently purchase pension plans online from anywhere in the world.
Flexible Annuity Options: NRIs can choose between immediate or deferred annuity based on their preferences and needs.
Generous Sum Assured: The sum assured is 10X the annual premium or fund value, and provides financial security to NRIs and their nominees.
Tailored Vesting Age: NRIs have the flexibility to select the vesting age, determining when they start receiving their monthly pension.
Long Accumulation Period: NRIs benefit from an extended accumulation period, allowing them to pay regular premiums towards their policy over an extended timeframe.
Surrender Value Option: NRIs have the option to receive surrender value if they decide to surrender the pension plan before maturity, providing financial flexibility.
The three main eligibility criteria for purchasing retirement plans in India are:
NRIs are eligible to buy Pension Plans.
Minimum entry age: 18 years (some plans may require 30 years).
Maximum entry age: typically around 70 years for NRIs.
Policyholders must pay a minimum premium, with pension amount determined accordingly.
Vesting age: generally set at 40 years but can vary among providers.
NRIs can plan retirement by considering these age-related factors and selecting a pension plan that is suitable for them.
With the rapidly changing economic landscape in the world, it has become important for NRIs to plan for a secure and comfortable retirement. Retirement planning for NRIs involves strategizing and investing to secure financial stability and independence during retirement while considering factors like currency fluctuations, tax implications, and long-term financial goals. It aims to ensure a comfortable lifestyle post-retirement regardless of geographical location.
Retirement planning for NRIs involves creating a comprehensive strategy that anticipates inflation, healthcare expenses, and evolving lifestyle demands. The objective is to generate adequate funds and assets throughout one's career to sustain financial independence during retirement.
It is important to start planning for retirement as early as possible to accumulate enough funds for future expenses and maintain a standard of living during retirement years.
For Non-Resident Indians (NRIs) looking to secure their financial future, pension plans in India present several advantages. Some of them are:
Pension plans in India are tailored for NRIs, ensuring continuous savings over time.
These plans focus on creating annuities for NRIs, generating reliable income post-retirement.
Indian pension plans for NRIs secure their future and offer the potential for better returns, making them a smart investment for retirement.
Besides retirement savings, these plans offer insurance coverage for the financial security of the policyholder's family.
Here are some key points to consider:
Define Your Retirement Goals: Evaluate the lifestyle you aim to sustain during retirement, factoring in expenses such as housing, healthcare, travel, and hobbies as an NRI.
Estimate Retirement Duration: Calculate the anticipated number of post-retirement years to ensure adequate financial provisions.
Factor in Inflation: Account for inflation's impact on your retirement savings to maintain purchasing power over time.
Step 1: You make regular contributions during your working years.
Step 2: Compound interest & market returns help your money grow over time.
Step 3: You stay invested for a certain period to be eligible for pension benefits.
Step 4: At your retirement age, start receiving a monthly pension.
Starting retirement planning early is important for several reasons:
Financial Security: Retirement planning ensures financial stability and security during post-career years.
Inflation Protection: Planning early helps offset the impact of inflation on retirement savings.
Long-term Goals: NRIs need to consider their long-term financial goals and lifestyle choices post-retirement.
Tax Efficiency: Early planning allows NRIs to explore tax-efficient retirement savings options.
Compound Growth: Starting early harnesses the power of compound interest, increasing retirement savings over time.
Unexpected Events: Planning mitigates the impact of unforeseen circumstances and emergencies during retirement.
Customized Strategies: Early planning allows NRIs to tailor retirement strategies to their unique circumstances and aspirations.
To buy a retirement plan, follow these steps:
Determine Your Retirement Needs: Determine your goals, lifestyle, and estimated expenses based on factors like age and financial obligations.
Research and Compare Plans: Explore different retirement plans, compare features, benefits, costs, investment options, and payout structures.
Review Terms and Conditions: Thoroughly examine the plan's terms, including vesting period, contribution limits, withdrawal restrictions, fees, and charges.
Monitor and Review: Regularly track your plan's performance, stay informed about any changes, and adjust contributions or investment strategy when needed.
State Pension: Government-provided based on National Insurance contributions, available at State Pension age.
Workplace Pension: Employer-sponsored scheme with contributions from you and your employer (usually mandatory).
Personal Pension: You set up yourself, offering flexible contributions and investment choices.
˜Top 5 plans based on annualized premium, for bookings made in the first 6 months of FY 24-25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
*All savings are provided by the insurer as per the IRDAI approved insurance
plan.
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
+Returns Since Inception of LIC Growth Fund
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.
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