Is There A Monthly Pension Scheme?

The pension plan you choose will rely on your resources, needs, and risk tolerance, among other things. You can look at government programmes that give a monthly stipend after you reach retirement age for people who are risk-averse. There are also conventional annuity plans that provide insurance coverage.

Retirement ULIPs that provide both a life insurance policy and market-linked investments are an option for those who are ready to face certain risks in order to expand their assets. These policies offer alternatives for monthly annuities that last until the policyholder's death. To know more about the monthly pension scheme, read on.

What Are Some Monthly Pension Schemes That One Can Look For?

Following are some monthly pension schemes that one can look for -

• National Pension Scheme -

Now, a senior citizen between the ages of 60 and 65 can create an account with NPS. The policy's term may last until they become 70 years old. This permits investors five to ten years to put money aside and reap the rewards of investing in assets that are related to the market, such as stocks, corporate bonds, government bonds, etc. The policyholder may withdraw 60% of the total money once the account reaches maturity. However, in order to buy an annuity plan, a minimum of 40% of the income must be invested. Senior folks will have a source of monthly income for the rest of their life thanks to this.

• Pradhan Mantri Vaya Vandana Yojana -

This pension plan is available to anybody 60 years of age or older who wants to guarantee a monthly income for life. The fixed policy duration for this monthly pension programme for seniors is 10 years. The bare minimum required to invest in a monthly pension is Rs. 1.62 Lakhs. The maximum buying price is 15 lakh rupees. Investing can be done every month, every quarter, every half-year, or every year. You would be eligible for a pension with a matching minimum and maximum of Rs. 1000 and Rs. 9250 each month. The policyholder also receives life coverage for the whole period of the policy term, which is a significant advantage. If the pensioner passes away, the nominees will be given the entire purchase price.

• Indira Gandhi National Old Age Pension Scheme (IGNOAPS) -

The policyholder also receives life coverage for the whole period of the policy term, which is a significant advantage. If the pensioner passes away, the nominees will be given the entire purchase price.

What Are Some Other Schemes That One Can Look For?

Following are some of the other schemes that one can look for -

• ABSLI Guaranteed Annuity Plus -

It offers a guaranteed income for as long as you or your spouse is alive. It comes with 10 payout options that you can choose per your needs. For instance, you can choose to receive a fixed monthly income for life, or have the sum increase at 3-5% after a period of time. It is a single premium policy, meaning that you would have to pay a lump sum at the time of policy purchase.

• HDFC Life Pension Guaranteed Plan -

For a senior person, the maximum admission age is set at 85 years old. Your lifetime monthly income will be guaranteed by a single premium payment under this plan. Either a delayed annuity or an instant annuity option is available. Additionally, your wife can have this coverage purchased for her. This guarantees that the income advantage will continue even after your death for as long as she is alive.

• ICICI Pru Guaranteed Pension Plan -

For older individuals who want insurance cover in addition to a pension payment after retirement, this is a monthly pension plan. The ICICI Pru Guaranteed Pension Plan offers more than 10 annuity alternatives, and its top-up feature also enables you to raise your monthly income. If you select the instant annuity option, you will begin getting a monthly check as soon as the transaction is made. You have the opportunity to pick when the payouts under the delayed annuity option will be made. In both situations, the pension payment is made as long as you are alive.

Endnotes

You now understand what a pension is and how it works. It guarantees your financial security after you reach retirement age, enabling you to enjoy a happy and fruitful retirement.

Also Read: 

Everything You Need to Know About Annuity Plans

How Can I Use NPS To Make A Monthly Pension Of Rs 50,000?