Top 6 Reasons Why You Should Get A Pension Plan
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

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.

Kotak e-Invest

Top 6 Reasons Why You Should Get A Pension Plan

A pension plan, also known as a retirement plan, is an investment plan where a certain amount is invested in return for periodic payments in post-retirement. Read to know more.

  • Nov 25, 2021
  • 941 Views

There comes a time when you must hang your boots. While we all have to face this inevitability, the steps we take now can significantly impact how we live our life post-retirement. One of the ways to financially secure your future is investing in a suitable retirement plan.

What is a Retirement Plan?

A pension plan, also known as a retirement plan, is an investment plan where a decided amount is invested in return for periodic payments, lump-sum, or a combination of both post-retirements. These plans are aimed at securing your financial future post-retirement.

Why Should you Invest in a Retirement Plan?

1. Guaranteed Pension or Income

Pension plans are not market linked and provide a fixed pension after retirement for a specific period or throughout the lifetime. The annuity period could be deferred or immediate depending on the type of plan you select. A guaranteed income allows you to plan your retirement years and stay one step ahead in the financial game.

2. Security of Savings and Assets

In the absence of any concrete financial arrangement, the assets and funds remain prone to pilferage and leakage. Therefore, a pension fund helps you secure your future and provides a haven for your savings in the present.

3. Grow Your Savings

You save your hard-earned money to use the same during your later years. Pension plans can make your post-retirement years comfortable by compounding your savings over the long term. The earlier you start investing your savings in a pension corpus, the more will be the power of compounding.

4. Tax Benefits

Pension plans come with many tax benefits, such as

  • Investments up to Rs 1.5 lakhs in retirement plans are eligible for tax deduction under section 80CCC.
  • One-third of the corpus received post-retirement is tax-free, and only the rest is taxable.
  • In the union budget of 2021, section 194P has been added to provide relief to retirees above 75 years old. Under the section, if the retired individual only earns
    income from pension and interest, the bank will deduct TDS, and the individual is exempt from filing income tax returns.

5. Enhance Your Plan with Insurance Covers

Some retirement plans come with the ability to add insurance covers to your plan, which help in providing complete financial security in your retirement years. You can choose from a wide range of insurance covers, including:

  • Death benefit
  • Accidental Death Benefit
  • Permanent Disability Cover

6. Diversify Your Investments

Many pension plans allow you to choose the asset class you want to invest in based on your risk profile and financial objectives. You can select from equity, debt, or a mix of both to diversify your investments.

Live a Worry-Free Life with a Pension Plan

Different pension plans may have varying features, and you can choose the one to best suit your specific needs. As a preparation for your retirement days, invest in a suitable retirement fund that helps you meet your objectives. You certainly cannot work forever, but that should not stop you from enjoying your life once you retire.

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

Retirement planning with a systematic life insurance plan

What are the Charges Levied on ULIP?

What are ULIPs and their Types?

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

Long Term Investment Guide for Your Retirement

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

What is Lock-In Period in ULIPs?

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

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

Why You Should Invest In An Annuity Plan?

Pros and Cons of Retirement Annuities

5 Reasons to Buy ULIP for a Secured Financial Future

Which Pension Plan Suits You best?

Top 6 Flexible Benefits That ULIPs Offer

What is a Retirement Plan - What are its Features?

How Do Annuity Options Work In NPS

Top 4 Mistakes To Avoid While Planning For Your Retirement

Is It Worth Buying ULIP Plans For 10 Years?

Different Types of Retirement Schemes

Benefits Of Retirement & How Investments Can Help You Enjoy Them

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

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

What Are Retirement Pension Plans?

Understanding Annuity Plans

Is the ULIP Policy Surrender Value Taxable?

Know Why You Should Stay Invested in Your ULIP Plan

A Quick Guide to Retirement Plans

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

Top 4 Myths About ULIP Investments You Should Know

Do Pension Plans Allow any Death Benefits?

How should one decide on fund allocation within NPS?

Why Should You Invest in NPS?

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

What Are Mortality Charges In ULIP?

8 Charges in ULIP That You Must Know

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

Saving for approaching retirement with retirement insurance

How Has NPS Performed in Comparison with Other Instruments?

What are the Benefits of ULIP - Explained

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

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

Top Investment Options for Retirement Planning

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

Save Early to Keep Living Your Dreams Post Retirement

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

What are the Rules for Exit From NPS?

How Does ULIP Work in India?

5 Common ULIP Myths That You Should Stop Believing

What are the Differences Between ELSS ULIP and Mutual Funds?

What is the difference between Life Insurance and ULIP?

Invest for your second innings with a guaranteed savings plan

How Can I Achieve My Wealth Goal with ULIP Investment?

Is ULIP a Complex Financial Product?

At What Age Should You Start Your Retirement Planning?

How To Keep Your Retirement Accounts from Being Hacked?

ELSS vs ULIP: Which is a Better Investment?

What tax benefits are there on saving for retirement?

Advantages of Pension Schemes and Retirement Plans

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

Retirement Planning at 50? You Are Still Good to Go

What is the Minimum Lock-in Period for ULIP?

Benefits of Early Retirement Plans

Calculating a Retirement Corpus that can Support Your Lifestyle

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

Tips to invest your voluntary retirement scheme money

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

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

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

What is Fund Value in ULIP?

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

What Are Superannuation Benefits?

Do ULIPs Give Good Returns On Investments?

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

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

यूलिप के फायदे (Benefits of ULIP in Hindi)

How Does Pension Plans in India Works?

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

Terminologies You Should Understand About Retirement Plans

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

How can NPS help you save tax?

Different Types of ULIP Investments in India

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

5 Notable Investment Options for Retirees

Types of Retirement Plans

Demystifying the Retirement Planning Process

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

Un-Retirement - Are You Ready For It?

Retirement Planning Guide for Working Men and Women

Is ULIP a Good Option for People Above 60?

Benefits of Early Retirement Planning in India

What are the Advantages and Disadvantages of ULIP?

यूलिप के 8 शुल्क

Types of Pension Plans for Your Retirement

Retirement Planning for Millennials

What are the things to consider before buying ULIPs?

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

A Beginner's Guide to Understanding 401k Retirement Plan

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

Give Your Retirement Savings A Booster-Shot with Annuities

How To Make Most of Your Money After Retirement?

NPS for Housewife

How Does NPS Work?

Importance of financial Planning for Retirement

Importance of Retirement Planning

What is Partial Withdrawal in ULIPs?

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

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

ULIP Plan or Traditional Insurance Plans - Which is better?

Why ULIP Should Be a Part of Your Investment Portfolio?

5 Steps to Gift a Smart Retirement Plan to Your Parents

How Safe is it to Invest in ULIP plans?

Inflation: A Key Factor to Consider into Retirement Planning

Retirement: A New Start to Life!

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

Meaning of Sum Assured in a ULIP

Can NRIs Invest in ULIP Plans Offered in India?

What Happens to ULIP Premiums Paid if the Market Crashes?

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

Ten Signs That You're Ready to Retire

How To Choose The Right Pension Plan?

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

The Significance of Number 8,000 in Retirement Planning

FAQs on Taxation of ULIPs

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

Is ULIP A Good Investment Option?

7 Secrets that can Make Your Post-Retirement Phase Prosperous

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

Are Annuities Great For Early Retirement?

How Much Corpus Does One Need for Retirement?

What is a Defined Benefit Plan and How it Works?

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

Important Questions To Ask Yourself Before Choosing A Good Retirement Plan

Is ULIP Better Than FD?

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

How to Win at Retirement Savings?

What is ULIP and Its Benefits?

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

How has ULIP Grown Over the Last 3 years?

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

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

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

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

What are the Uses of ULIP?

What are the Instruments Available for Building a Retirement Corpus?

Best Insurance Plans for a Guaranteed Monthly Income After Retirement!

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?

Can I Surrender My ULIP Policy after 2 Years?

Which Is Better: ULIP or SIP?