Retirement Insurance Plans are Pension Plans that help you build a corpus for your retirement. These Pension Plans helps you set-aside money in your prime years. Click to know more https://www.bajajallianzlife.com/retirement-plans/retirement-plans.jsp
2. • After retirement, everyone needs a flow of money to maintain their existing
lifestyle. Everyone knows how important it is to plan for your retirement, but is
often clueless where to begin. One of your first steps should be to estimate
how much income you’ll need to fund your retirement. That’s not as easy as it
sounds, because retirement planning is not an exact science where you put a
formula and you get the exact answer. Your specific needs depend on your goals
and many other factors. There are many private and public insurance
companies that offer retirement pension plans to take care of your expenses
during the retiring days. These pension plans offer other benefits like tax
savings as well.
• The article discusses what pension plans are and few types of plans available in
insurance market.
3. • Retirement pensions also known as annuity plans are designed to offer regular
income to people after retirement. These pension plans allow the policyholder
to choose the date from which they can start receiving the pension. It need not
be after retirement, at times can be earlier as well. Insurance companies offer
some of the best pension plans to customers with customized benefits that will
fulfill their requirement and most importantly fit into the budget.
• Immediate Annuity
• In Immediate Annuities, consumer has to make a one-time investment in
lumpsum and they receive a regular payout called “pension” for the rest of
their lives. The pension can start with immediate effect as well which could be
monthly, quarterly, semi-annually or yearly. These plans are ideal for those
who wish to ensure they receive regular income after retirement. But you can’t
withdraw the investment amount or cancel the annuity.
4. • Deferred Annuity
• In deferred annuity the payment of income are delayed until the investor
choose to receive it. There are two phases: Savings or accumulation phase
and income phase. In saving or accumulation policy holder pays premium at
regular intervals for specific term. At the end of phase, the income phase
begins wherein 1/3rd of the money accumulated can be withdrawn, while
the remainder is used to buy an annuity product.
• Traditional Retirement Pension Plan
• In these plans, the investment is mostly in debt-oriented funds such as
government securities. Low risk associated with such financial products
makes these plan most preferred option for risk-averse investors.
• ULIPs
• These are designed for those who want to plan their retirement early. Due to
market-linked fund the returns expected could be higher compared to
traditional retirement plans. Under ULIPs investors can choose to allocate
their investment in various asset classes such as equity, debt or balanced
funds.
5. • Tax Benefits
• Under section 80CCC, income act 1961 the contribution towards pension funds
can be deducted from the gross income, leading to tax savings. As of 2015, the
maximum deduction allowed for investment in pension funds would be Rs 1.5
lakh per annum.
• One of the important advices would be plan for your retirement early. This way
you will get to experiment with funds well enough and gain profits in time. You
will also enjoy the benefits of compound earnings. While considering ULIPs
never get too emotional and pool all your money in one particular fund, else
sell funds due to any panic all. Also, consult your financial expert who have
studied market well, its volatility and future projections before picking the best
Retirement Plans of your life.
