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How to Choose the Right Pension Plan?

Published On Jul 01, 2021

Retirement is certain and sure, everyone who is a working employee has to retire one day and return back to the basics, usually. The key factor for a carefree and successful retirement is proper planning and preparing for your retirement, both mentally and financially. You might be ready for your retirement financially, but your mind might not be accepting the fact that you'll be superannuating soon and vice versa.

If you choose to ignore it, you may find yourself in a very bad dilemma once you retire. Hence it is advised to start preparing for your retirement at a very early age. One of the very basic factors of having a successful retirement is owning a good pension plan but the trick here is the presence of so many lucrative pension plans which tends to confuse the buyer.

How To Choose The Right Pension Plan?

There are certain market factors that make a pension plan suitable for you. Following these tips might help you in choosing the best plan according to your needs and of course under your budget:

  • Availability Of Inflation Adjusted Returns

One of the main and the most prudent factors that help you choose the best pension plan for you is to keep an eye on the fact that your chosen policy offers you inflation-adjusted returns. This means that the pension plan you have chosen must provide you with the returns which won't get affected by the prevailing inflation post your retirement, the value of your invested money should keep rising with the rising level of the costs of goods. 

  • Guaranteed Pension For The Insured And His Spouse 

After working tirelessly for so many years, one wants to live a happy and independent life without any hassles. You might want to spend your retirement solely with your spouse and children and spend the funds on them which is justified but what if you happen to pass away in an event of misfortune. To ensure your family's and direct nominee's financial stability, you should check if your chosen plan offers a guaranteed pension for your spouse in case of your demise. This way you are securing their life in both your presence and absence.

  • Flexibility To Increase Premium Amounts

Every individual is expected to start saving from a very early period of his career so by the end of the tenure he has a great corpus amount. However it is very much possible that you started saving and investing late so your corpus might not account to too much a sum. Many pension plans come with the flexibility of increasing the premium amounts so that when you have a good sum of money or when your income hikes, you can increase your premium which in turn will increase your corpus.

  • Frequent Bonuses And Other Benefits

Pension plans can be much more worth it if they offer you bonus incentives and the best part about this is that many insurance companies provide frequent bonuses and many other monetary incentives to its policyholders. Hence, you should try to choose a policy that provides you with a loyalty bonus, maturity bonus etc. which will provide you with added benefits.

  • Guaranteed Income Option

It does not matter how much you are saving throughout your career as there is always a potential risk that you might run out of the specified sum of money eventually. Hence it is important that you should choose a pension plan that comes with a guaranteed income option and provides you with a monthly income throughout your life post retirement to ensure you have a secure future.


These are the most popular factors that affect your pension plans and provide you with more and more benefits in your retirement period. Choose a plan which suits your needs and live a carefree life. 

Also read 

Key Tips For Retirement Planning

Best Life Insurance Retirement Plans 2021

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.        

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