Retirement And Pension Plans in India- What Are Your Options?
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

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

Retirement and Pension Plans in India- What are Your Options?
  • 27th Aug 2021 |
  • 560

Whether you have a booming business or a secured job in the government or private sector, your income is bound to fall once you retire. A good retirement/pension plan can help you plan your finances for the post-retirement years to stay self-reliant and enjoy your retired life. Read further to explore the different types of retirement plans available in the market.

Post-retirement time is an excellent opportunity to focus on your happiness, pursuing hobbies, spending time with friends, and most importantly, having good leisure time. But it is crucial to have an income source post-retirement to make the most of your time without worrying about your living expenses. Retirement plans or pension plans that banks and financial institutions offer can be a great way to secure your post-retirement years financially. It is a kind of investment plan that allows you to grow your funds over the years, which is paid back in monthly, quarterly, or yearly pensions. But before opting for a plan, it is essential to understand the different types of retirement plans to select a suitable one.

Let’s look at some of the common types of pension plans available in the market-

Traditional Pension Plans:

  • It is one of the popular pension types that allows an individual to invest in the plan by paying premiums for a chosen tenure, depending upon the corpus required at retirement. The vesting benefits are available once the term completes.
  • Traditional plans may be participating or non-participating- A participating plan offers bonuses/dividends in addition to the guaranteed benefits. And a non-participating plan offers only the guaranteed benefits.
  • It may be offered with additional riders such as death benefit rider, disability benefit rider, etc.
  • These plans invest in comparatively safer funds such as government securities and bonds.

Immediate Annuity Plans:

  • It is a single premium plan with no accumulation phase. After the single purchase price, the annuity starts immediately after a month or so, as per the policy.
  • There may be different options available with the plan, such as lifetime income, the continuation of payouts to the spouse in case of death of the primary annuitant, etc.

National Pension Scheme (NPS):

  • It is a social security initiative by the Govt. of India and available to employees in public, private, and unorganised sectors.
  • It is similar to a systematic investment plan where you invest monthly and avail yourself regular pension during your retirement years.
  • A portion of the NPS fund is invested in equities that can deliver better than traditional instruments such as FDs or PPFs.

Life Annuity:

  • It is the most common pension plan that guarantees the annuitant a lifetime income after retirement.
  • It often comes with a joint-annuity option that allows the spouse to receive the pension income in case of the policyholder’s death.

Read through the Detail Features Before Selecting a Plan

The features of the different types of retirement plans discussed above, though distinct, can overlap under a single policy. For example, a traditional plan or an immediate annuity plan can also offer lifetime income (Life Annuity). In our discussion above, we have included the generic features of these plans, but detailed terms and conditions may vary with different banks/financial institutions. Hence, you must carefully study the offerings of each plan before buying one.

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

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

Benefits of Early Retirement Planning in India

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

What is the Minimum Lock-in Period for ULIP?

Top 4 Myths About ULIP Investments You Should Know

Know Why You Should Stay Invested in Your ULIP Plan

Calculating a Retirement Corpus that can Support Your Lifestyle

Is ULIP A Good Investment Option?

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

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

Are Annuities Great For Early Retirement?

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

Is It Worth Buying ULIP Plans For 10 Years?

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

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

Top 6 Flexible Benefits That ULIPs Offer

Why Should You Invest in NPS?

What Happens to ULIP Premiums Paid if the Market Crashes?

Retirement: A New Start to Life!

5 Steps to Gift a Smart Retirement Plan to Your Parents

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

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

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

5 Common ULIP Myths That You Should Stop Believing

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

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

Meaning of Sum Assured in a ULIP

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

8 Charges in ULIP That You Must Know

Give Your Retirement Savings A Booster-Shot with Annuities

7 Secrets that can Make Your Post-Retirement Phase Prosperous

What are the Advantages and Disadvantages of ULIP?

How Safe is it to Invest in ULIP plans?

Why Should I Invest in ULIP?

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

ELSS vs ULIP: Which is a Better Investment?

What are the Differences Between ELSS ULIP and Mutual Funds?

At What Age Should You Start Your Retirement Planning?

What is the difference between Life Insurance and ULIP?

What tax benefits are there on saving for retirement?

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

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

What is ULIP and Its Benefits?

Do Pension Plans Allow any Death Benefits?

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

How Has NPS Performed in Comparison with Other Instruments?

What is Partial Withdrawal in ULIPs?

How To Make Most of Your Money After Retirement?

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

Benefits Of Retirement & How Investments Can Help You Enjoy Them

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

A Beginner's Guide to Understanding 401k Retirement Plan

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

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

Importance of Retirement Planning

How to Win at Retirement Savings?

Is ULIP a Good Option for People Above 60?

How To Keep Your Retirement Accounts from Being Hacked?

Do ULIPs Give Good Returns On Investments?

FAQs on Taxation of ULIPs

Inflation: A Key Factor to Consider into Retirement Planning

यूलिप के 8 शुल्क

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

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

How To Invest Money In ULIP?

Advantages of Pension Schemes and Retirement Plans

What is Lock-In Period in ULIPs?

How Can I Achieve My Wealth Goal with ULIP Investment?

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

A Quick Guide to Retirement Plans

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

What are ULIPs and their Types?

Which Pension Plan Suits You best?

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

How should one decide on fund allocation within NPS?

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

Ten Signs That You're Ready to Retire

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

Pros and Cons of Retirement Annuities

Retirement Planning Guide for Working Men and Women

How Does NPS Work?

Is ULIP a Complex Financial Product?

How has ULIP Grown Over the Last 3 years?

Demystifying the Retirement Planning Process

Un-Retirement - Are You Ready For It?

How Does Pension Plans in India Works?

Why ULIP Should Be a Part of Your Investment Portfolio?

Long Term Investment Guide for Your Retirement

5 Notable Investment Options for Retirees

How can NPS help you save tax?

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

How Much Corpus Does One Need for Retirement?

What are the things to consider before buying ULIPs?

Is ULIP Better Than FD?

यूलिप के फायदे (Benefits of ULIP in Hindi)

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

Different Types of ULIP Investments in India

Retirement Planning for Millennials

Save Early to Keep Living Your Dreams Post Retirement

What is Fund Value in ULIP?

Managing Your Retirement Income with an insured retirement plan

Types of Pension Plans for Your Retirement

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

How Do Annuity Options Work In NPS

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

Benefits of Early Retirement Plans

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

What is a Retirement Plan - What are its Features?

Retirement planning with a systematic life insurance plan

Types of Retirement Plans

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

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

What Are Mortality Charges In ULIP?

Top 4 Mistakes To Avoid While Planning For Your Retirement

Why You Should Invest In An Annuity Plan?

Different Types of Retirement Schemes

Can NRIs Invest in ULIP Plans Offered in India?

ULIP Plan or Traditional Insurance Plans - Which is better?

Understanding Annuity Plans

Top Investment Options for Retirement Planning

Tips to invest your voluntary retirement scheme money

Important Questions To Ask Yourself Before Choosing A Good Retirement Plan

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

5 Reasons to Buy ULIP for a Secured Financial Future

Why are ULIPs One of the Best Tax Saving Instruments?

Retirement Planning at 50? You Are Still Good to Go

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

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

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

Why Are ULIPs Called Flexible Investments?

NPS for Housewife

The Significance of Number 8,000 in Retirement Planning

What are the Uses of ULIP?

Can I Surrender My ULIP Policy after 2 Years?

Which Is Better: ULIP or SIP?

Which are the Best ULIP Plans in India for Children?

What are the Charges Levied on ULIP?

Importance of financial Planning for Retirement

Top 6 Reasons Why You Should Get A Pension Plan

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

What Are Retirement Pension Plans?

Best Insurance Plans for a Guaranteed Monthly Income After Retirement!

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

Invest for your second innings with a guaranteed savings plan

How To Choose The Right Pension Plan?

Terminologies You Should Understand About Retirement Plans

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

What Are Superannuation Benefits?

What are the Benefits of ULIP - Explained

What are the Instruments Available for Building a Retirement Corpus?

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

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

How Does ULIP Work in India?

What are the Rules for Exit From NPS?

Is the ULIP Policy Surrender Value Taxble?

Saving for approaching retirement with retirement insurance