Pension plans are designed to help individuals accumulate funds throughout their working years to support their retirement income needs. The primary goal of a pension plan is to provide a steady income stream, which is important for covering unforeseen medical and other emergencies. It also helps maintain a stable lifestyle by covering various expenses like utilities, groceries, property taxes, etc., ensuring financial security. Thus, a pension plan provides stability, preventing unpredictable retirement problems where financial hardship and unexpected costs can be hectic.
Peaceful Post-Retirement Life
Tax-Free* Regular Income
Wealth Generation to beat Inflation
A pension plan is a dedicated savings vehicle, designed to build a reliable income stream for your post-retirement life. It's an investment that grows through consistent contributions, ensuring financial stability in your later years. Starting early with a well-chosen pension plan allows you to build a substantial retirement fund.
Pension plans create retirement savings through various contribution methods. Some plans involve shared contributions between employer and employee, while others rely on individual deposits. At retirement, these funds can usually be converted into an annuity, providing regular income.
Therefore, it's important to research and select the most suitable pension plan to meet your individual needs.
The following list will help you to choose the best pension plan among various options available:
| Pension Plans in India | Entry Age | Maturity Age | Policy Term (PT) | Minimum amount to Invest (yearly) | |
| Bajaj Allianz Life LongLife Goal | 18 - 65 years | 99 years | 99 years minus Entry age | Rs. 25,000 p.a. | Get Details |
| Canara Promise4Growth - Life | 18 - 60 years | 18 - 80 years | 10-30 years | Rs. 12,000 p.a. | Get Details |
| Edelweiss Life Tokio Wealth Secure Plus | 18 - 60 years | 18 - 70 years | 5-25 years | Rs. 24,000 p.a. | Get Details |
| HDFC Life Click 2 Wealth | 18 - 60 years | 18 - 99 years of age | 20 - 64 years | Rs. 12,000 p.a. | Get Details |
| HDFC Life Smart Pension Plan | 25 - 70 years | 40 - 80 years | 10 - 55 years | Rs. 30,000 p.a. | Get Details |
| ICICI Prudential Life Signature | 18 - 60 years | 18 - 75 years | 10-30 years | Rs. 30,000 p.a. | Get Details |
| ICICI Prudential Signature Pension | 25 - 65 years | 40 - 80 years | 20 - 55 years | Rs. 60,000 p.a. | Get Details |
| Kotak E-invent - Retire Rich Plan | 18 - 50 years | 28 - 60 years | 10/ 12/ 15/ 20 years | Rs. 24,000 p.a. | Get Details |
| Max Flexi Wealth Advantage Plan | 18 - 50 years | 18 - 75 years | 10 - 40 years | Rs. 24,000 p.a. | Get Details |
| Max Life Online Savings Plan | 18 - 60 years | 85 years | 5 - 52 years | Rs. 12,000 p.a. | Get Details |
| Max Life SWP - Long Term Income Plan | 18 - 60 years | 60 - 85 years | 60 - 80 years minus Entry Age | Rs. 11,000 p.a. | Get Details |
| PNB Goal Ensuring Multiplier | 18 - 60 years | 99 years | 39 - 99 years | Rs. 18,000 p.a. | Get Details |
| Tata AIA Fortune Guarantee Pension | 18 - 75 years | 40 - 85 years | 5 - 15 years | Rs. 12,000 p.a. | Get Details |
| Tata AIA Fortune Maxima | 18 - 60 years | 100 years | 100 minus issue age | Single: Rs. 25,000; Limited: Rs. 12,000 p.a. | Get Details |
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
Following are the details of the best pension plans by insurance companies:
The Bajaj Allianz Life LongLife Goal is a non-participating Unit-Linked Pension Plan (ULPP) with guaranteed life cover and annuity payout.
Canara HSBC Promise for Growth is a retirement plan that helps you achieve your long-term financial goals while providing life insurance coverage for your family.
Edelweiss Life Tokio Wealth Secure Plus is a non-participating unit-linked best pension plan in India with guaranteed life cover and maturity benefits.
The HDFC Life Click 2 Wealth is a participating Unit-Linked Pension Plan (ULPP) with guaranteed life cover and loyalty additions.
HDFC Life Smart Pension Plan is a Unit Linked Pension Plan (ULPP) that helps you build a retirement corpus. It ensures regular income post-retirement and financial security during your golden years.
A participating Unit-Linked Insurnace Plan (ULIP) with guaranteed life cover and loyalty additions.
The ICICI Pru Signatrue Pension Plan is a Unit-Linked Pension Plan (ULPP) that helps you plan for a financially secure retirement. It combines market returns with flexibility to suit your retirement needs.
The Kotak e-Invest Retire Rich Plan is a type of investment plan that combines investing your money in the market with some life insurance protection.
A Unit Linked Insurance Plan (ULIP) designed to help you build a wealth portfolio for you and your loved ones for regular income during retirement.
Axis Max Life Online Savings Plan is a unit-linked, non-participating traditional investment plan that provides both life cover and wealth creation benefits.
Axis Max Life SWP, which stands for Smart Wealth Plan is a whole-life insurance based retirement plan in India that is designed to provide income for a long period.
PNB Goal Ensuring Multiplier (GEM) is a Unit Linked Insurance Plan (ULIP) that combines life insurance coverage with investment options, aiming to help you achieve your long-term financial goals.
Tata Fortune Guarantee Retirement Plan is an individual, non-linked, non-participating pension plan designed to provide you with a guaranteed income after retirement, along with life insurance coverage.
The Tata AIA Fortune Maxima is a participating Unit-Linked Pension Plan (ULPP) offering life insurance cover and market-linked returns.
A wide range of pension plans in India are available to meet various financial needs. These plans have multiple classifications based on the plan structure and benefits.
Let's explore these pension plans in detail:
| Pension Plans | Description |
| Public Provident Fund (PPF) |
|
| Employee Provident Fund (EPF) |
|
| National Pension Scheme (NPS) |
|
| Atal Pension Yojana (APY) |
|
| Mutual Fund Schemes |
|
| Deferred Annuity |
|
| Immediate Annuity |
|
| Annuity Certain |
|
| Guaranteed Period Annuity |
|
| Life Annuity |
|
| Pension Funds |
|
| Whole Life ULIPs |
|
| Defined Benefit |
|
| Defined Contribution |
|
In a pension plan, you contribute money over your working life, that money is invested to grow, and then you receive regular payments after you retire. This helps ensure financial security and stability in your post-work life.
You contribute regularly.
Your contributions are invested.
The investments grow over time.
You become eligible for benefits (vesting).
You may receive a guaranteed income (annuity).
You may be able to take a lump sum withdrawal
The three main eligibility criteria for purchasing retirement plans in India are:
In major cases, the minimum entry age for a Pension Plan is 18 years, but some plans require an entry age of 30 years. The maximum entry age is usually around 75 years.
Policyholders must pay a minimum premium for their Pension Plan, as the pension amount is based on the premium paid.
The age at which a policyholder begins receiving their pension is known as the vesting age, which is usually set at 40 years but can vary depending on the insurance provider.
Below are the key benefits offered on purchase of a retirement or pension plan:
The sum assured is a definite amount offered to the nominee of the plan at the end of the pension plan tenure. It is generally 10X the annual premium or the fund value of the policy.
Premiums paid qualify for tax deductions under Section 80C, and maturity proceeds can avail of tax exemption under Section 10(10D) of the Income Tax Act, 1961. For Pension plans without risk coverage, the customer gets tax-free maturity under section 10(10A) and Section 26AB.
An annuity is the fixed amount you will receive each year throughout your life tenure on the purchase of an annuity plan. The annuity can be immediate or deferred, depending upon the nature.
The surrender value of a pension plan is the amount the insurance company will pay you if you surrender the plan before its maturity.
Pension plans provide various options for premium payment (lump sum or periodic) and annuity payouts (monthly, quarterly, or annually).
Retirement plans may or may not include life insurance coverage based on the choice of the customer. In case the customer opts in for risk cover, it provides financial security to dependents.
Below is the list of people who should consider investing:
Maximize tax savings under Section 80C and Section 10(10D).
Start early to benefit from compounding interest and build a secure retirement fund.
Take control of your retirement savings, as there are no employer-sponsored plans available.
Don't rely solely on government schemes; secure your retirement with your own pension plan.
Ensure financial stability in your non-earning years by building a reliable corpus.
Protect yourself against rising costs of living with plans offering increasing annuities.
Consider the following factors before buying a pension plan:
Determine your desired retirement age and lifestyle you want post-retirement.
Assess future expenses like healthcare, inflation, and daily living costs to estimate your required retirement corpus.
Choose between traditional pension plans, market-linked plans (ULIPs), or annuity-based plans based on your risk appetite.
Ensure the premium amount fits within your current budget.
Evaluate tax deductions on premiums and exemptions on maturity.
Check for flexibility in annuity payouts—lump sum, monthly, or increasing annuities to combat inflation.
Look for plans that provide life insurance coverage along with retirement benefits.
Opt for plans that offer withdrawal options, top-ups, or riders for critical illness or disability.
Analyze historical returns for market-linked plans and the financial strength of the insurer.
Check if the plan allows borrowing against the policy in case of emergencies.
Ensure the plan offers features to keep up with rising costs, such as increasing annuities.
Consider your current debts and loans and plan to minimize or eliminate them before retirement to avoid financial burdens in your post-retirement years.
Deciding the amount needed for retirement is a personal matter and depends on various factors. To estimate the amount, keep in mind the following factors:
The earlier you start, the more time you have to build a corpus.
Set aside a good percentage of your total earnings for retirement.
Plan for the lifestyle you want after retirement.
Remember that the cost of living will increase.
Spread your investments across different asset classes to reduce risk.
Maintain consistent savings habits.
A pension plan calculator can help you plan better.
Regularly review and adjust your investments as needed
Retirement planning is the process of preparing your finances for the retirement stage of your life. It involves setting goals, estimating your income needs, and taking steps to accumulate and manage funds to support those needs throughout your retirement years.
It is important to have a well-thought-out retirement plan that considers factors such as inflation, healthcare costs, and changing lifestyle needs. Start planning for retirement as early as possible to accumulate enough funds for future expenses and maintain a standard of living during retirement years.
The importance of planning changes with different stages of life. Knowing these stages can help you make smart financial decisions for a comfortable retirement.
Let us have a look at the significance of retirement planning based on age and life stages:
To buy a retirement plan, you will want to start by finding out about your financial goals, then follow these steps:
You can check retirement plans on this page or through the Policybazaar homepage.
Check the features and premiums of different plans to find the best fit for you.
Pick and choose the most suitable plan that aligns with your goals and needs.
Think about adding on features or adjusting coverage if needed to modify the plan according to your situation.
Make your payment online and receive confirmation about your retirement plan.
Policybazaar offers you certain facilities that ease out your experience in purchasing a pension plan. Let us learn them below:
You can compare multiple pension plans from top insurers on a single platform.
Policybazaar allows you to compare features, benefits, and premiums of different plans to make an informed decision.
Find plans customized to your retirement goals, budget, and financial needs.
No hidden charges; all details are clearly presented before purchase.
Get guidance from financial advisors to choose the best retirement plan.
Round-the-clock assistance for queries, claim processes, and policy management.
Pension Plans play an important role in securing financial stability during retirement. With a diverse range of options, individuals can choose pension plans according to their choices to meet specific needs, ensuring a comfortable and worry-free post-retirement life. Planning ahead and selecting the right pension plan are essential steps towards a secure and fulfilling retirement journey.
˜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 investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CARG 8%; ₹50,45,591 @ CAGR 4%
^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.
¶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
**Returns are based on past 10 years’ fund performance data (Fund Data Source: Value Research).
Tata AIA
Max Life
Bajaj Allianz
SBI Life
HDFC Life
ICICI Prudential
Edelweiss Life
Kotak Life
Future Generali
PNB MetLife
Aditya Birla Sun Life
Aviva
Ageas Federal
Bandhan Life
Canara HSBC
IndiaFirst
Pramerica Life
Reliance Life
Sahara Life
Shriram Life
Star Union
The Indian government is actively exploring the implementation
Read more
The HDFC Life Group Unit Linked Pension Plan is a retirement
Read more
In today's uncertain economic climate, a reliable income stream
Read more
Do you want to receive a monthly pension of ₹25,000? With the
Read more
The SBI Life - Saral Retirement Saver is a non-linked
Read moreInsurance
Calculators
Payment Methods
Secured With
Follow us on
