Being employed is great! You can manage all your expenses and fulfil your dreams and goals through the paycheque that you receive in your bank each month. However, when you retire, the goals and objectives would continue, but the account wouldn’t have the regular paycheques coming in. That is where planning for your future becomes so important. And luckily, we have some of the best pension plans in India to help you keep your money coming in the account even though you are not working. But for that, you have to ensure that the investment you put in the pension plan is a wise one. So, here are the top 5 best pension plans in India that you should definitely check if you are looking to secure your future through them.
- National Pension Scheme — The Government of India offers a centralised plan called the National Pension Scheme for various employees in various occupations. The Pension Fund Regulatory and Development Authority is in charge of it. When a person chooses NPS, they must begin making contributions while they are employed by the government or other organisations. Essentially, a set amount is deducted from your paycheque each month and invested in either mixed debts or equity funds. When you hit retirement age, you can easily take a lump sum withdrawal for your personal use while keeping the remainder for your recurring annuity payments.
Annuity Plans — You can get excellent retirement coverage from the annuity options as well. The annuity plan is split into two parts: the immediate portion, which allows you to pay a certain amount and immediately begin receiving a monthly or yearly annuity. The other is a deferred plan, in which you invest for a set length of time but either in a lump sum or over time cycles.
Pension plans that also provide life insurance — Some pension plans that you choose can serve as excellent life insurance policies for your loved ones in addition to providing you with a monthly or annual income in your account after you resign. A portion of your money is saved safely for your life insurance coverage under the retirement plan. The remaining portion is put into your chosen fund. After you reach 60, you regularly receive a monthly annuity under the pension plan. Your candidates will also get the insurance payout if you pass away.
- Defined benefit pension plan — This is one of the best pension plans in India because here, an employer is responsible for providing the pension for you. (It can either be a lump sum amount or the monthly premiums.) Of course, the amount you would be getting in your pension plan totally depends upon your nature of work, service tenure and performance as an employee.
- Unit linked investment plan — The ULIP is also one of the most preferred and best pension plans in India as it offers both the cover amount after your retirement and even the option to invest some amount in the market for equity or debt funds. You can even add an option of life insurance with this policy where your family gets a cover amount after your death because of this plan.