Which pension scheme is best in india

Tier-I or Tier-II. While the lock-in period on NPS schemes is until retirement, you can choose to withdraw your funds prematurely in specific cases to cater to unforeseen financial requirements.

The pension programme also gives you the benefit of choosing the allocation of your investments. The scheme gives you the option to select the funds either automatically or manually. While the active choice will allow you to determine the plan and percentage of your funds you wish to invest in, the auto choice will allocate your investments based on the risk assessment and your profile.

The fund mainly invests in the banking finance sector, government sector, and financial institutions. LIC Pension Fund also recorded the returns at 9. UTI Retirement Solutions generated the highest returns of 9. SBI Pension Fund followed it by generating 9. Live Blog. Stock Reports Plus. Candlestick Screener. Stock Screener. Market Classroom. Stock Watch.

Market Calendar. Stock Price Quotes. Markets Data. Market Moguls. Expert Views. Technicals Technical Chart. Commodities Views News. Forex Forex News. Currency Converter. For better user experience update your browser to Internet Explorer versions 9. You also have an option of a joint-life pension annuity plan under which annuity payments are made even during the lifetime of your spouse.

The purchase price of the annuity is payable in a single premium. The annuity payment frequency can be monthly, half-yearly, quarterly, or annually as per the choice of the Annuitant.

These annuities offer guaranteed income almost immediately and the premium paid is tax-exempted as per the Income Tax Act A Certain Annuity is offered by an Insurance Company limited. These are an investment in retirement income. A Certain Annuity option provides a guaranteed retirement income for a pre-specified period to the Annuitant or his nominees.

The annuity can also be taken as a Lump sum. Due to its set expiration date, these annuities provide higher returns than any other annuity option. These have high upfront fees and other charges as compared to other traditional annuities. Pension Plans with cover means the life of the Policy Holder is covered and upon his death, a lump sum amount is paid to his immediate family members also known as the nominees.

These plans are like the typical insurance plan but the amount paid under these plans is not considerable. The large amount invested in these plans goes to the building of the corpus rather than covering the life risk.

Pension Plans without Cover are those plans where the life of the Policy Holder is not covered. Upon the death of the Policy Holder, the nominee only gets the corpus so built during his lifetime. Only Long Term insurance plans have the option of life cover like Deferred Annuity Scheme, unlike Immediate Annuity which is short term and does not cover life. As the name suggests a Guaranteed Period Annuity is an annuity that offers guaranteed return.

This annuity ensures that the immediate family members of the Annuitant are benefitted even after the death of the Policy Holder throughout the entire period of guarantee of the annuity. Life Annuity is the most common type of Pension Plan.

Under this plan, a Policy Holder or Annuitant is guaranteed a life pension annuity income throughout his life. It also provides the option of Joint-Annuity where the annuity is paid to the spouse even after the death of the Policy Holder. These are offered by Insurance Companies. A portion of the investment made under these plans is utilized to provide life cover and the remaining is invested in Equity and Debt Funds.

There are certain charges levied on these schemes, unlike the traditional Insurance Policies. The returns under the Unit Linked Insurance Plan depends entirely on the market conditions and the risk of investment is solely borne by the PolicyHolder.

A Defined Benefit Pension Plan is one where a specified pension payment, lump-sum, or combination thereof is paid to the employee by his employer. These are employer-sponsored retirement plans. The benefit of an employee is computed taking into account his age, earnings, tenure of service, etc. The incomes under this plan are generated solely on the basis of your work. It is a joint contribution of both you and your employer that makes retirement much easier.

Defined Contribution Pension Plan requires one to contribute their own money towards a retirement plan. Here both the employer and the employee make contributions on a regular basis. Accounts are set up for each individual and benefits are calculated as per the credits held in these accounts through both employee and employer contribution.

This contribution can later be used as retirement benefits by an employee. Though the Scheme was initially applicable to Government Employees only later the same was opened for all the citizens of India in This Scheme was introduced to safeguard the retirement benefits of the individual post retirement.

Due to its tax savings benefit, NPS has become a popular investment scheme in recent times. Pension Funds are another type of Retirement Pension Plan which are popular among the investors.

These Funds usually have a large amount of money invested and the returns are higher as compared to the other retirement plans. Choosing the right plan as per the needs and financial goals can be a difficult but critical decision. The right decision made now benefits one in the future.

Likewise, a smart decision made now will lead to a better life post retirement. Hence, it becomes very important to select the best plan so as to secure your financial needs during old age. There are certain set eligibility criteria for a Retirement or Pension Plan.

Let us discuss the most prominent eligibility criteria for Retirements Plans followed in India. Like any other investment plan, there is an age criterion to be followed at the time of purchasing the Plan. Any individual who has attained the age of 18 years is eligible to purchase a Retirement Plan. While some companies have also set their minimum entry age at 30 years.

Likewise, there is also a maximum age limit to purchase a Pension Plan. Most of the companies have set the maximum age at 75 years. This is an age when the individual begins to receive the monthly pension. Most Pension Plans keep the minimum vesting age at 45 years while the maximum vesting age goes up to 80 years. To purchase a Pension Plan one has to pay a minimum premium amount. The premium may vary from policy to policy and also the tenure.

The premium has to be paid either monthly, quarterly, yearly or even a lump-sum amount can be paid for the chosen policy term. Usually, the policy term depends on the Pension Plan chosen. The term ranges from 10 years to 30 years. To secure the future one has to tactfully choose the right plan according to the investing capacity and financial goal one sets.

Most importantly one has to plan their retirement as early as possible. This will enable one to allocate their saving plan in proper channels which will further build a corpus. A suitable Retirement Plan will help one overcome inflation and also help in fulfilling the post retirement basic needs without being too harsh on the savings. This will assist in a fixed source of income post retirement when the actual income ceases.

Everyone wants to live a happy and relaxed retirement life. For this one can purchase a Pension Plan suitable for their needs and financial goals. Different Plans have different reaping benefits. There are many such options available for the Pension Plan. You can choose a plan as per your needs for a secure future. These Pension Plans help you achieve your financial independence so you can enjoy your golden days.

At Scripbox we understand that every individual has different post retirement goals. With the introduction of so many Pension Plan Schemes, it becomes extremely confusing to choose the right plan keeping in mind the financial goal and post retirement benefits. We at Scripbox help you put your practical action plan in place to achieve financial freedom.

Here we help you to estimate the right amount needed for your future financial security taking the inflation factor into consideration. We also have personalized retirement planning as per your goals. Use our advanced tools to create a personalized financial plan and investment to be made.

You can also keep track of your investments to know your actual gain. All you have to do is tell us a little about your retirement goal like your current age, age of retirement, current monthly expense, and the age you are planning retirement benefit.

Financially securing old age has become one of the major concerns among individuals. The very thought of not having saved anything for the future is alarming. Moreover, inflation and the economy hit the common man to the worst. Hence, a proper retirement plan saves one from this distress in the future.

This is one of the foremost criteria to be taken into consideration before selecting a Retirement Plan. The higher the life expectancy the higher the retirement financial goal of an individual.