Top 5 Pension Plans in India 2024

Retirement is one of the most crucial phases of life, and planning for it is of the utmost importance. With each passing year, we’re closer to our retirement phase. It is therefore time for you to act, given the inflation in India's various sectors. Life insurance companies provide pension and retirement plans to financially secure you for your golden years. In this article, you’ll learn about the top pension plans in India. However, before that, let’s understand why it's important to buy pension plans for retirement. 

Why Purchase Pension Plans In India In 2024? 

Here are some key benefits of purchasing pension policy plans: 

• Promote Saving Habits:
  • Pension plans are long-term investments in which the policyholder pays regular premiums to the insurance company. As a result, when you buy a pension plan, it will inculcate a savings habit in you, and you will be able to create a corpus of funds. 
• Earn Compounding Interest: 
  • Another reason to buy a pension plan is that, in addition to securing your future financially, pension plans will help you create wealth through the power of compounding. 
• Flexible Investment: 
  • Pension plans are flexible. Therefore, you can choose the most suitable plan for yourself depending on your risk appetite. Moreover, you can switch between funds according to your convenience to bear the risk. As pension plans are long-term investments, you will be able to create a corpus of funds in the long run. 

List of Top Pension Plans in India 2024

Numerous life insurance companies offer top pension plans to meet people's individual retirement needs. Listed below are some of the top pension plans in India. 

1. LIC New Jeevan Shaanti Plan: 

It is a non-linked, non-participatory, single-linked premium life insurance policy that provides return benefits through a deferred annuity option. You can buy this plan either online or offline, according to your convenience. Key features of the LIC New Jeevan Shaanti Plan are listed below. 

1. You can create long-term wealth by making one-time investments. 
2. Disabilities add-on cover for dependents can be bought by the policyholders. 
3. The policyholders are eligible for discounts on annuity plans. 
4. There are four annuity modes- monthly, quarterly, half-yearly, and annually. 

The eligibility criteria for the LIC New Jeevan Shaanti Plan are as follows: 

2. HDFC Life Click 2 Retire Plan: 

It is a Unit Linked Insurance plan (ULIP) pension plan that provides market-linked returns at minimal charges. The policyholders can accomplish all their financial goals post-retirement through the HDFC Life Click 2 Retire Plan. The minimum entry age to invest in this life insurance policy is 18 years. Key features of this plan are listed below. 

1. Policyholders receive a death benefit equal to the fund value or 105% of their paid premiums. 
2. The policyholders can avail of vesting benefits with no premium allocation charges. 
3. The policyholders are eligible for tax benefits under Section 80CCC of the Income Tax Act, 1961. 
4. There are multiple premium payment options available such as Regular, Single, and Limited pay. 

3. SBI Life Saral Retirement Saver: 

It is a traditional, participating life insurance pension plan that will provide you coverage and peace of mind in your golden years. Key features of the SBI Life Saral Retirement Saver plan are as follows: 

1. You can create a corpus of funds as this plan is safe from market volatility. 
2. The policyholders get guaranteed simple reversionary bonuses for the first five years. 
3. Nomination choice is given under Section 39 of the Insurance Act, of 1938. 
4. Free look-up period for up to 30 days 

4. Max Life Guaranteed Lifetime Income Plan: 

It is a non-linked traditional annuity plan that ensures that you receive regular income post-retirement. Moreover, the policyholders have the flexibility to choose the type of payout mode on a monthly, yearly, half-yearly, and quarterly basis. Key features of the Max Life Guaranteed Lifetime Income Plan are listed below. 

1. The policyholders can choose between joint life annuity and single life annuity plans. 
2. The purchase price of the policy is given to the nominee after the demise of the policyholder. 
3. The policyholders get guaranteed payouts depending on the premium payout mode they have chosen. 
4. There is no minimum or maximum premium payment limit. 

5. ICICI Prudential Easy Retirement Plan: 

It is a non-participating unit-linked pension plan that provides two fund options for investment: an easy retirement balanced fund and an easy retirement secure fund. The policyholders can choose from limited and regular premium payment options. Listed below are the key features of the ICICI Prudential Easy Retirement Plan. 

1. The policyholder's beneficiaries receive the greater of the fund value or the guaranteed death benefit, whichever is higher. 
2. The policyholders below 55 years of age can reduce the vesting period of their life insurance policy. 
3. The policyholders get a 101% guaranteed return on the premium paid. Therefore, the market risk is lower. 
4. The accumulated value is payable on vesting. 

Conclusion 

As numerous life insurance companies provide retirement plans, it is crucial to compare different policies and choose the one that best suits your requirements. The policyholders may have to pay a huge premium if they opt for market-linked pension plans. 

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