Pension Plan
What is a Pension Plan?
A pension is a fixed amount received by people at regular intervals as a kind of regular income during one’s post-retirement years. A pension plan is an investment plan offered by many life insurance companies making it helpful to the people to create retirement. funds of their own so that they can be secured financially post- retirement without any dependence on anyone else during that phase. These kinds of pension plans provide a pre- specified and regular pension to avoid any type of financial shortfalls during one’s retirement days.
BEST PLANS
Best Pension Plans in India 2023
There are various retirement pension plans offered by many companies which have varying features based on different customer’s requirements. There are also plans which can be customized based on the customer’s interests and wants. Those people who expect a regular income during post retirement or post employment days, it is advised to them to start investing in their preferred pension plans in their youth . age itself so that in their retirement days they do not have to be dependent on anyone else for their basic survival needs. One’s savings for sure will get exhausted one day or the other and there won’t be any amount left at the time of emergencies, hence in the best interest of the people they should invest in the best pension plans which matches their investment capacity and income levels.
Types of Pension Plans in India
There are many types of pension plans based on time, term of the policy, insurance cover and mode of holding. A few major types include:
- Immediate and deferred annuity
- Life annuity
- Guaranteed period annuity
- Annuity certain
- With or without insurance cover
- Single or joint holder
Benefits of Retirement Pension Plans
Retirement pension plans have many benefits when the investment has been made from a very young age of any person.a person who would have invested in retirement pension plans while they were in their 20s and expected at least a small return to support a comfortable living after retirement. He enjoys the most advantages, such as steady post-retirement income that guarantees a reasonably nice living for everyone and allows him to meet his fundamental needs and wants.
Investing in pension plans ensures a risk free investment wherein the investor need not worry about the risks or losses to incur in this kind of investment. A person who would have invested in a pension plan, gets a fair insurance cover and his dependents will be getting an amount pre- specified on his death during the period.
If the person had been investing before his retirement in pension plans. then on his retirement he would be getting a lump sum amount and post retirement a regular income. A person also has the option of adding another person in his pension plans so that on his death or any other mishap. the amount is being received by the other person.
And lastly one of the major benefits is that the person who has invested in retirement pension plans, gets various tax benefits making a relief to the investor.