Different Types of Retirement Schemes
Close
Close

Buy a life insurance plan in a few clicks

Now you can buy life insurance plans completely online right here.

  • Icon for Kotak Preferred e-Term Plan

    Kotak e-Term Plan

    Kotak e-Term Plan is a pure term plan that provides a high level of protection to your loved ones in your absence.

  • Icon for Kotak Preferred e-Term Plan

    Kotak Health Shield

    The Kotak Health Shield Plan helps secure your finances in times of sudden medical expenses related to illness such as Cardiac, Liver, Neuro and Cancer (all early and major stages of illness /conditions of Cancer); along with offering protection for Personal Accident - in case of accidental death or disability.

  • Icon for Kotak Preferred e-Term Plan

    Kotak Lifetime Income Plan

    Kotak Lifetime Income Plan gives you the assurance of your income continuing throughout your life and in your absence throughout the lifetime of your spouse!

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.

Back

Different Types of Retirement Schemes

View Plans
  • 24th Sep 2021
  • 237
Different Types of Retirement Schemes

Retirement plans are schemes that are designed in a way so as to pay a lifelong monthly income to you after you have fully retired from your active work life. By investing in a retirement scheme, you have to pay a specific amount of money from your savings until the time you retire and this accumulated money is later given back to you as pension. Not only do these plans financially secure your future but they also enable you to maintain the lifestyle you always have. There are various retirement plans that differ on the following basis:

  • Payout requirements of the subscriber (lump sum/annuity)
  • Insurance inclusive or non-insurance inclusive
  • Payout timing (deferred/immediate)
  • Returns on the plan
  • Risk Appetite

8 types of retirement schemes - Infographic

By continuously investing in a retirement plan, the amount multiples over the years due to compounding. It is one of the best kinds of investments for the long haul. Here are a few types of the best retirement plans in India.

1. DEFERRED ANNUITY

In this type of scheme, you have to pay a regular premium or a single premium over the policy term to build a corpus. Post completion of the policy tenure, you receive the money as pension. Furthermore, there is the benefit of tax exemption - one-third of the corpus is tax-free on withdrawal.

2. IMMEDIATE ANNUITY

In this type of retirement insurance policy, you have to pay a specified amount in lump sum and avail the pension immediately. Here, you have a range of annuity options to choose from and the premiums paid are tax exempted. Additionally, your nominee is liable to receive the money in the case of an eventuality.

3. WITH COVER/WITHOUT COVER

With cover pension plans are one of the best as they come with a life cover. In case of your demise, a lump sum payout is made to your nominee. Without cover plans do not come with a life cover and in case of your demise, your nominee gets the corpus (up until the date of the eventuality).

4. ANNUITY CERTAIN

In this pension scheme, the annuitant is paid the annuity for a certain number of years. The term period to be chosen is upon the annuitant and in the case of your sudden demise, your beneficiary is entitled to receive the annuity.

Basics of Financially Secure Retirement planning - Infographic

5. GUARANTEED ANNUITY

Under this kind of pension scheme, you are entitled to receive pension for time periods like 5 years, 10 years, 15 years, or 20 years - regardless of whether you have survived the term period or not.

6. LIFE ANNUITY

This is one of the best income policies as you will continue to receive your pension up until you live out your years. This scheme also provides you with the option wherein you can choose your spouse as your beneficiary. After your demise, he/she will continue to receive the pension.

7. NATIONAL PENSION SCHEME (NPS)

This is a retirement scheme initiated by the government. Here, the money you invest is put into debt funds and equity funds so that you generate larger returns. However, the proceeds post maturity are not tax-free. Do note, you can withdraw up to 60% of your investments post-retirement.

It is advisable to start early on your retirement planning as the younger you begin, the better it is. Despite the fact that you can look into plans and tailor them to best fit your needs, you should remember certain thumb rules so as to reap the maximum benefits. Start today!

Understanding different retirement plans - Infographic

- A Consumer Education Initiative series by Kotak Life

Tags

Also read

  • Why Should Retirement Planning Be on Top of Your Priority List?
    • 30th Nov 2021
    • 7

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

    Improper retirement planning makes it difficult for many people to live their retired life as they've always imagined. Here are the reasons why should...

    Read more
  • Saving for approaching retirement with retirement insurance

    Saving for approaching retirement with retirement insurance

    Are you maximising today for a happy tomorrow?

    Read more

Related Plans

  • Kotak e-Term Plan - Online Term Insurance

    Kotak e-Term Plan - Online Term Insurance

    Kotak e-Term Plan is a pure term insurance plan that provides a holistic life protection at affordable prices. Find out the eligibility criteria, key ...

    Know more
  • Kotak Gratuity Plus Group Plan

    Kotak Gratuity Plus Group Plan

    Kotak Gratuity Plus Group Plan is a unit-linked group gratuity plan that helps you fund for the gratuity obligation systematically & effectively and r...

    Know more
  • Kotak Complete Cover Group Plan

    Kotak Complete Cover Group Plan

    Kotak Complete Cover Group Plan is a non-participating single-premium plan that provides life cover to a group of borrowers of the credit /lending ins...

    Know more