Hope for a Sustainable Lifestyle after Retirement

In life, change is the only constant and savings is one of that change, that eventually leaves an indelible mark in the way your lifestyle might change after retirement. To mitigate the financial burden without a regular income, one must be prepared beforehand with all the income avenues.

A pension is a kind of a fund into which a regular amount of money is put aside from your salary and is paid after retirement. It can be a benefit pension plan where a fixed sum is paid at regular intervals as per the contractual terms, or a contribution plan in which a fixed sum is paid, dependent on the contributed amount, at regular intervals and becomes available only at a retirement age.
Pension pay is different from redundancy or severance pay. In the involuntary termination, a one-time fixed amount is paid out in line with the period of employment.

Different Types of Pension

• Employment-Based: This fund is set up by the employers to contribute a part of their salary into it to avail benefits upon retirement. Quite often the employers also contribute towards the Employment pension plan.
• State Pension: It’s a contribution-based benefit in which the citizen is required to pay payment during the entire working life, thus utilizing the benefits later upon retirement.
• Disability Pension: Providing monetary benefits in the event of disability.

Pension Plans to Secure A Respectable And a Stress Free After Retirement Phase.
Pension plans are designed to cater for senior citizens as per their requirement. Pension plans or retirement plans comes armed with both investment and insurance options. The following are the  best pension plans, going around in the market according to PolicyX.com:

• HDFC Life-Click to Retire: It’s a type of Unit linked plan which provides the policyholder exposure to the market linked returns. The benefits are:
o Maturity age starts from 45 and extends till 75.
o The entry age is 18 which can go up to 65
o The benefits to the nominee will be higher than the fund value of 105% of the premiums paid.
o Tax benefits under section 80C

• ICICI Pru - Easy Retirement: The investment in this is done in equity, keeping in mind long-term returns and protection against market volatility. The benefits are:
o The payment frequency mode can be half yearly and Yearly
o Entry age is 18, the max it can go to is 75 years
o The minimum premium of Rs 48,000 is required. There is no upper limit.
o The duration of the policy is anywhere between 10-30 years
o Tax benefits

• Bajaj Allianz: Pension Guarantee: A guaranteed payment plan in which the policyholder is guaranteed a regular payment for the rest of his retirement life from the various annuity options. The following are the benefits:
o Multiple annuity options to choose from
o Minimum installment of annuity is Rs 1000
o Entry age of 37 and the maximum age is 80
o Minimum purchase amount of Rs 25000 with no maximum limit
o It can be extended to the spouse

• Birla Sun Life Empower Pension: It’s a ULP plan where the money invested is allocated to a fund, thereby increasing the exposure to the market, in turn, creating a higher chance of a higher payout post-retirement. There are 2 types of funds that the money is invested in:
o Maximizer Guaranteed
o Income advantage guaranteed
Benefits:
o Guaranteed additions take effect from the 6th year of the policy. They accrue @.25% from 6-10 years and @.35% from the 11th year onwards.
o The policy term is between 5-30 years
o Entry age is 25 years with the maximum age of up to 70 years
o The option to choose premiums is in your hands
o The policyholder has the option to choose the risk profile based on their risk appetite

Pension Plan: A Necessity That Must Be a Part of Your Retirement Agenda

Pension plans provide annuity payout post-retirement and it’s up to the individual to choose from a deferred annuity or immediate annuity depending on their situation. All the above-mentioned plans from various companies ensure the most comprehensive product portfolio which is at the customer's disposal. Almost all the insurance companies have an easy comparable user interface which provides a very detailed overview of the return on investment just by punching in some required parameters. You can also get your frequently asked questions answered through a helpline phone number or by sending them an email.