Advantages of Pension Schemes and Retirement Plans
Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term Plan

Protect Your family’s financial future with Kotak e-Term Plan. 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 Health Shield

Insurance against medical expenses related to heart, brain, liver and Cancer. Know more

Advantages of Pension Schemes and Retirement Plans

Advantages of Pension Schemes and Retirement Plans
  • 15th Dec 2021 |
  • 776

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. 

Kotak e-Invest

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

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

Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

5 Steps to Gift a Smart Retirement Plan to Your Parents

यूलिप के 8 शुल्क

What tax benefits are there on saving for retirement?

How Safe is it to Invest in ULIP plans?

Is ULIP a Complex Financial Product?

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

How Can I Achieve My Wealth Goal with ULIP Investment?

Understanding Annuity Plans

Is ULIP Better Than FD?

What Are Mortality Charges In ULIP?

Which are the Best ULIP Plans in India for Children?

Top Investment Options for Retirement Planning

How Do Annuity Options Work In NPS

Which Pension Plan Suits You best?

How To Make Most of Your Money After Retirement?

Is It Worth Buying ULIP Plans For 10 Years?

What Are Superannuation Benefits?

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

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

What are the Instruments Available for Building a Retirement Corpus?

Why Are ULIPs Called Flexible Investments?

What is ULIP and Its Benefits?

How Does Pension Plans in India Works?

How Much Corpus Does One Need for Retirement?

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

Saving for approaching retirement with retirement insurance

Importance of Retirement Planning

A Quick Guide to Retirement Plans

Benefits of Early Retirement Planning in India

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

यूलिप के फायदे (Benefits of ULIP in Hindi)

Top 6 Reasons Why You Should Get A Pension Plan

Invest for your second innings with a guaranteed savings plan

How should one decide on fund allocation within NPS?

FAQs on Taxation of ULIPs

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

Importance of financial Planning for Retirement

How Has NPS Performed in Comparison with Other Instruments?

7 Secrets that can Make Your Post-Retirement Phase Prosperous

A Beginner's Guide to Understanding 401k Retirement Plan

At What Age Should You Start Your Retirement Planning?

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

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

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

How is ULIP NAV calculated? How is the return calculated in ULIP?

Give Your Retirement Savings A Booster-Shot with Annuities

Top 4 Mistakes To Avoid While Planning For Your Retirement

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

Why ULIP Should Be a Part of Your Investment Portfolio?

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

What is Fund Value in ULIP?

Retirement Planning Guide for Working Men and Women

Why are ULIPs One of the Best Tax Saving Instruments?

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

How to Win at Retirement Savings?

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

What is NAV in ULIP, and How is it calculated?

Do ULIPs Give Good Returns On Investments?

Different Types of ULIP Investments in India

What are the Advantages and Disadvantages of ULIP?

Calculating a Retirement Corpus that can Support Your Lifestyle

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

Tips to invest your voluntary retirement scheme money

What are ULIPs and their Types?

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

What is an Annuity Plan and How Does Annuity Plan Works | Kotak Life

Retirement planning with a systematic life insurance plan

Important Questions To Ask Yourself Before Choosing A Good Retirement Plan

Do Pension Plans Allow any Death Benefits?

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

What is Lock-In Period in ULIPs?

How To Choose The Right Pension Plan?

Long Term Investment Guide for Your Retirement

5 Common ULIP Myths That You Should Stop Believing

What is Partial Withdrawal in ULIPs?

Is the ULIP Policy Surrender Value Taxble?

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

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

Benefits Of Retirement & How Investments Can Help You Enjoy Them

Retirement Planning at 50? You Are Still Good to Go

How Does ULIP Work in India?

Why Should I Invest in ULIP?

How To Keep Your Retirement Accounts from Being Hacked?

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

What are the Uses of ULIP?

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

Ten Signs That You're Ready to Retire

Why You Should Invest In An Annuity Plan?

Is ULIP a Good Option for People Above 60?

What is the difference between Life Insurance and ULIP?

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

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

Top 4 Myths About ULIP Investments You Should Know

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

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

Types of Retirement Plans

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

The Significance of Number 8,000 in Retirement Planning

Top 6 Flexible Benefits That ULIPs Offer

What are the things to consider before buying ULIPs?

NPS for Housewife

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

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

What is the Minimum Lock-in Period for ULIP?

Save Early to Keep Living Your Dreams Post Retirement

Know Why You Should Stay Invested in Your ULIP Plan

Can I Surrender My ULIP Policy after 2 Years?

Managing Your Retirement Income with an insured retirement plan

How can NPS help you save tax?

Retirement: A New Start to Life!

Can NRIs Invest in ULIP Plans Offered in India?

What are the Rules for Exit From NPS?

What are the Charges Levied on ULIP?

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

Meaning of Sum Assured in a ULIP

Which Is Better: ULIP or SIP?

What Are Retirement Pension Plans?

Terminologies You Should Understand About Retirement Plans

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

5 Reasons to Buy ULIP for a Secured Financial Future

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

5 Notable Investment Options for Retirees

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

Best Insurance Plans for a Guaranteed Monthly Income After Retirement!

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

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

How Does NPS Work?

Different Types of Retirement Schemes

Is ULIP A Good Investment Option?

How to Choose the Best ULIP Plans to Invest in 2022?

How To Invest Money In ULIP?

Demystifying the Retirement Planning Process

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

8 Charges in ULIP That You Must Know

What Happens to ULIP Premiums Paid if the Market Crashes?

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

Retirement Planning for Millennials

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

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

Types of Pension Plans for Your Retirement

How has ULIP Grown Over the Last 3 years?

How Is ULIP Different from Other Life Insurance Plans? Where Can I Invest - ELSS, ULIP, or PPF?

What are the Differences Between ELSS ULIP and Mutual Funds?

What is a Retirement Plan - What are its Features?

Pros and Cons of Retirement Annuities

What are the Benefits of ULIP - Explained

ELSS vs ULIP: Which is a Better Investment?

ULIP Plan or Traditional Insurance Plans - Which is better?

Why Should You Invest in NPS?

Are Annuities Great For Early Retirement?

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

What are the Maturity Benefits in a ULIP Plan: Fund Value Sum Assured or Only Fund Value?

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

Benefits of Early Retirement Plans

Inflation: A Key Factor to Consider into Retirement Planning

Un-Retirement - Are You Ready For It?