Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term

Protect Your family’s financial future with Kotak e-Term. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Lifetime Income Plan

Retirement years are the golden years of life. Know more

Close

Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

Advantages of Pension Schemes and Retirement Plans

One of the best ways to start planning your retirement is by investing in a feature-packed pension plan. Here are five benefits that make pension plans a must for every individual.

  • Dec 15, 2021
  • 1,608 Views

Retirement planning is necessary to ensure that you enjoy your post-retirement life just as you have imagined. With the rising medical costs and inflation, the sooner you start planning your retirement, the more secure your sunset years can be.

One of the best ways to start planning your retirement is by investing in a feature-packed pension plan. These plans help you accumulate and invest a fixed portion of your savings during your pre-retirement years for a financially secured future.

Here are five benefits that make pension plans a must for every individual concerned about retirement-

1.Disciplined Saving for Steady Future Income

While most people want to save and invest regularly, not many can maintain the level of discipline needed for such long-term financial commitments. A pension plan inculcates the habit of saving before spending so that you can stick to your long-term saving plan with utmost discipline.

After reaching your retirement age, the savings will be repaid to you in the form of a regular income, along with additional benefits. This makes these pension plans a practical way to secure your retirement life financially

2.Smoother Transition to Retirement Life

After working for 30-35 years, switching to a life where you don’t work anymore could be challenging. One of the biggest concerns during this transition is your financial stability. Having a pension plan that you have dedicatedly invested in over the years could help make this transition smoother.

It will eliminate the need to rely on your family members for financial support or liquidate your assets to manage basic and age-related expenses. 

3. Range of Add-ons to Choose From

While the primary objective of a pension or retirement plan is to provide policyholders with a steady source of income in the later years of life, some insurers also offer a wide range of add-ons. For instance, a pension plan could be purchased along with a life cover. With this plan, the policy nominee will receive a lump sum amount after the policyholder’s demise.

There are other add-ons such as permanent disability rider and accidental death rider for enhanced security. 

4.Tax-Efficient Retirement Planning

Pension plans are also highly tax efficient. With retirement plans , you get to choose from immediate annuity and deferred annuity. You invest a lump sum amount in immediate annuity plans and start receiving pension or annuity almost immediately after investing. While the interest you earn from an immediate annuity plan is taxed like any ordinary income, the principal is tax-exempt. 

In deferred annuity plans, there are two stages- accumulation and income. During the accumulation stage, the policyholders pay premiums at regular intervals. In the income phase, they can withdraw a specific portion from the saved money while the rest is invested to generate a steady source of income. The income grows without any tax deductions during the accumulation period. 

5.Lower Premiums for Younger Policyholders

Like health insurance and life insurance products, the premium in pension plans increases with age. By purchasing a retirement plan when you are in your 20s or 30s, you can take a step towards securing your retirement living at a lower cost compared to buying the plan in your 40s. 

Moreover, most insurers also let you choose assets in which your premiums would be invested. When you start early, you can choose more aggressive assets that often generate higher returns

Build the Retirement of Your Dreams with a Retirement Pension Plan

A pension plan is a product that has been created with the sole goal of providing financial security in the later stages of life. Many insurers also offer additional benefits, like guaranteed additions, annual bonuses, add-ons, and more, to help you secure your financial future and build the retirement of your dreams. 

Get in touch with a reputed insurer to know more about these benefits and understand how they can help supplement your retirement planning. 

In this policy, the investment risk in the investment portfolio is borne by the policyholder.

Kotak e-Invest

Download Brochure

Features

  • Return of Mortality Charges*$
  • Enhanced Protection
  • Multiple Plan Options
  • Zero Premium Allocation Charges
  • Tax Savings^

Ref. No. KLI/22-23/E-BB/521

T&C

- A Consumer Education Initiative series by Kotak Life

Similar Articles

Why You Should Invest In An Annuity Plan?

How Does ULIP Work in India?

Is it Advisable to Withdraw the ULIP Insurance Policy After 5 Years?

Saving for approaching retirement with retirement insurance

Un-Retirement - Are You Ready For It?

Worried About Running Out of Money in Retirement? 4 Tips to Avoid This Crisis

Save Early to Keep Living Your Dreams Post Retirement

How To Keep Your Retirement Accounts from Being Hacked?

5 Retirement Planning Tips for a Financially Controlled Post-Employment Life

Are Annuities Great For Early Retirement?

Single Premium ULIP or a PPF - Which One is Better?

What Are Superannuation Benefits?

5 Reasons Why ULIP Plans are One of The Best Retirement Planning Instruments

What tax benefits are there on saving for retirement?

How Has NPS Performed in Comparison with Other Instruments?

5 Reasons to Buy ULIP for a Secured Financial Future

What is Partial Withdrawal in ULIPs?

Different Types of Retirement Schemes

What are ULIPs and their Types?

What Happens to ULIP Premiums Paid if the Market Crashes?

Can I Surrender My ULIP Policy after 2 Years?

What are the Benefits of ULIP - Explained

10 Steps to Figure Out How Much Money You Will Need For Your Post Retirement Plans

What is the Estimated Return Percentage on ULIP? Do Investors Get Compound Interest?

What Happens If I Stop Paying My ULIP Policy Premium After Paying the First Premium? Will I Still Get The Return?

What is the difference between Life Insurance and ULIP?

How can NPS help you save tax?

The Significance of Number 8,000 in Retirement Planning

Types of Retirement Plans

FAQs on Taxation of ULIPs

Why Should Retirement Planning Be on Top of Your Priority List?

Why Should You start Retirement Planning as soon as you start a job?

Why ULIP Should Be a Part of Your Investment Portfolio?

Retirement Planning Guide: These 5 Steps Will Help You Towards a Safe, Secure and Fun Retirement

Understanding Annuity Plans

What are the Rules for Exit From NPS?

What are the minimum and maximum investment in ULIP? Would the Whole Amount Insured in The ULIP Insurance be Invested in the Market?

Know Why You Should Stay Invested in Your ULIP Plan

Here's What Retirement Would Look Like 30 Years From Now

Retirement and Pension Plans in India- What are Your Options?

Does Having Both ULIP Plan and Other Health Insurance Plan Make Sense?

Meaning of Sum Assured in a ULIP

What are the things to consider before buying ULIPs?

Importance of financial Planning for Retirement

What Are Retirement Pension Plans?

Retirement Planning: Use our Retirement Calculator to Plan Ahead

Calculating a Retirement Corpus that can Support Your Lifestyle

How to Maximize Your Retirement Savings with a Pension Scheme in India

Difference Between Unit-Linked Insurance Plans and Non-Linked Plans

Tips to invest your voluntary retirement scheme money

Retirement Planning at 50? You Are Still Good to Go

Who Gets the Benefit After the Maturity of ULIP: The Proposer or The Life Insured?

Is It Worth Buying ULIP Plans For 10 Years?

Invest for your second innings with a guaranteed savings plan

How to Win at Retirement Savings?

What is a Defined Benefit Plan and How it Works?

Top Investment Options for Retirement Planning

Retirement: A New Start to Life!

What is an Annuity Plan, and How Does Annuity Plan Work?

How Does NPS Work?

What are the Chances of Losing all my Money in ULIP and How Much Return Should I Expect?

5 Steps to Gift a Smart Retirement Plan to Your Parents

What To Do With Your Retirement Accounts During An Employment Lapse?

What is a Retirement Plan - What are its Features?

5 Common ULIP Myths That You Should Stop Believing

Types of Annuity Plan | Annuity Definition - Meaning & Key Benefits

Benefits of Early Retirement Plans

A Beginner's Guide to Understanding 401k Retirement Plan

6 Signs That You Are Not Financially Ready For An Early Retirement

Different Types of ULIP Investments in India

How To Calculate The Present Value And Future Value Of Annuities?

NPS for Housewife

EPF Grievance Management: All You Need to Know

How to Build a Tax-Free Pension Income for Retirement?

ULIP Plan or Traditional Insurance Plans - Which is better?

Do ULIPs Give Good Returns On Investments?

Are You Planning an Early Retirement? Here's Why Buying Annuity Plan Will Make Sense

How Do Annuity Options Work In NPS

5 Notable Investment Options for Retirees

Best Insurance Plans for a Guaranteed Monthly Income After Retirement!

7 Secrets that can Make Your Post-Retirement Phase Prosperous

Retirement planning with a systematic life insurance plan

Why Should You Invest in NPS?

How Does Pension Plans in India Works?

यूलिप और उनके प्रकार क्या हैं?

How Quickly is Fund Switch Effected in ULIPs? Is it Done the Same Day or After a Particular Number of Days?

Important Questions To Ask Yourself Before Choosing A Good Retirement Plan

How has ULIP Grown Over the Last 3 years?

Inflation: A Key Factor to Consider into Retirement Planning

Is ULIP a Good Option for People Above 60?

10 Steps to Figure Out How Much Money You Will Need After You Retire

How To Make Most of Your Money After Retirement?

What are the Charges Levied on ULIP?

Long Term Investment Guide for Your Retirement

What are the Differences Between ELSS ULIP and Mutual Funds?

Ten Signs That You're Ready to Retire

What is the Death Claim Payable in the Case of ULIP?

At What Age Should You Start Your Retirement Planning?

Do Pension Plans Allow any Death Benefits?

Is ULIP a Complex Financial Product?

Retirement Planning Guide for Working Men and Women

How Much Corpus Does One Need for Retirement?

Importance of Retirement Planning

How To Choose The Right Pension Plan?

ULIP Tax Benefits: यहां निवेश करने पर मिलते हैं 5 बड़े फायदे

How Safe is it to Invest in ULIP plans?

What are Fixed Maturity Plans and Why Should I Invest in Them?

What are the Uses of ULIP?

What is Lock-In Period in ULIPs?

Annuity Plan | How to Choose the Right Annuity Plan | Kotak Life

Retirement Planning - How To Calculate Your Retirement Premium in India?

How Can I Achieve My Wealth Goal with ULIP Investment?

Top 4 Mistakes To Avoid While Planning For Your Retirement

Benefits Of Retirement & How Investments Can Help You Enjoy Them

Demystifying the Retirement Planning Process

Looking for Ways to Earn Lifetime Income in Retirement? Here Are 6 of the Top Options

Pros and Cons of Retirement Annuities

Top 6 Reasons Why You Should Get A Pension Plan

How should one decide on fund allocation within NPS?

Which Is Better: ULIP or SIP?

What is Premium Redirection in ULIPs Plans | ULIP Insurance Plans | Kotak Life Insurance

A Quick Guide to Retirement Plans

ULIP: Can You Surrender ULIPs or Withdraw Money from It?

Can NRIs Invest in ULIP Plans Offered in India?

Is it possible to live a financially independent life, even after you retire?

ULIPs or Pension Plans – Which is a Better Retirement Plan?

Top 6 Flexible Benefits That ULIPs Offer

Is ULIP Better Than FD?

What is Fund Value in ULIP?

Getting Close to Retirement? Six Key Retirement Planning Tips That Can Help You Retire

Benefits of Early Retirement Planning in India

What is the Difference Between EPF, VPF, and PPF? What are Their Tax Benefits?

How Can ULIPs Help You Plan for Your Child's Future?

What are the Instruments Available for Building a Retirement Corpus?

Top 4 Myths About ULIP Investments You Should Know

Is it Suggestible to Take a ULIP Plan Linked with a Term Plan?

Which Pension Plan Suits You best?

What are the 4 Financial Phases of Retirement? How to Budget For Each One?

Give Your Retirement Savings A Booster-Shot with Annuities

ELSS vs ULIP: Which is a Better Investment?

Is ULIP A Good Investment Option?

Terminologies You Should Understand About Retirement Plans

What Are Mortality Charges In ULIP?

What is the Minimum Lock-in Period for ULIP?

यूलिप में 8 शुल्क जो आपको अवश्य जानना चाहिए

Types of Pension Plans for Your Retirement

Retirement Planning for Millennials