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.

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
  • 1,440 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

Benefits Of Retirement & How Investments Can Help You Enjoy Them

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

Long Term Investment Guide for Your Retirement

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

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

How Has NPS Performed in Comparison with Other Instruments?

Retirement Planning Guide for Working Men and Women

Demystifying the Retirement Planning Process

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

FAQs on Taxation of ULIPs

What Are Mortality Charges In ULIP?

NPS for Housewife

Is ULIP Better Than FD?

Benefits of Early Retirement Plans

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

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

What is a Retirement Plan - What are its Features?

Why Should You Invest in NPS?

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

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

Do ULIPs Give Good Returns On Investments?

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

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

Top Investment Options for Retirement Planning

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

A Quick Guide to Retirement Plans

Retirement: A New Start to Life!

Important Questions To Ask Yourself Before Choosing A Good Retirement Plan

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

What are the Uses of ULIP?

What is a Defined Benefit Plan and How it Works?

Meaning of Sum Assured in a ULIP

यूलिप और उनके प्रकार क्या हैं?

What are the things to consider before buying ULIPs?

5 Steps to Gift a Smart Retirement Plan to Your Parents

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

Why ULIP Should Be a Part of Your Investment Portfolio?

Give Your Retirement Savings A Booster-Shot with Annuities

What are the Instruments Available for Building a Retirement Corpus?

How has ULIP Grown Over the Last 3 years?

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

The Significance of Number 8,000 in Retirement Planning

A Beginner's Guide to Understanding 401k Retirement Plan

What are the Rules for Exit From NPS?

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

What Are Superannuation Benefits?

Best Insurance Plans for a Guaranteed Monthly Income After Retirement!

Why You Should Invest In An Annuity Plan?

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

How Does ULIP Work in India?

Do Pension Plans Allow any Death Benefits?

Retirement Planning for Millennials

How Does Pension Plans in India Works?

Types of Pension Plans for Your Retirement

Top 6 Flexible Benefits That ULIPs Offer

How To Keep Your Retirement Accounts from Being Hacked?

Benefits of Early Retirement Planning in India

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

Understanding Annuity Plans

ULIP Plan or Traditional Insurance Plans - Which is better?

Retirement Planning: Use our Retirement Calculator to Plan Ahead

Top 4 Myths About ULIP Investments You Should Know

What are the Charges Levied on ULIP?

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

Retirement planning with a systematic life insurance plan

Terminologies You Should Understand About Retirement Plans

7 Secrets that can Make Your Post-Retirement Phase Prosperous

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

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

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

What is the Minimum Lock-in Period for ULIP?

What are the Differences Between ELSS ULIP and Mutual Funds?

Inflation: A Key Factor to Consider into Retirement Planning

How Can I Achieve My Wealth Goal with ULIP Investment?

Un-Retirement - Are You Ready For It?

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

Is ULIP a Complex Financial Product?

5 Notable Investment Options for Retirees

Are Annuities Great For Early Retirement?

Pros and Cons of Retirement Annuities

How To Make Most of Your Money After Retirement?

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

How Do Annuity Options Work In NPS

What Happens to ULIP Premiums Paid if the Market Crashes?

5 Common ULIP Myths That You Should Stop Believing

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

Which Is Better: ULIP or SIP?

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

Calculating a Retirement Corpus that can Support Your Lifestyle

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

Retirement Planning at 50? You Are Still Good to Go

EPF Grievance Management: All You Need to Know

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

Different Types of Retirement Schemes

How Much Corpus Does One Need for Retirement?

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

Can I Surrender My ULIP Policy after 2 Years?

Invest for your second innings with a guaranteed savings plan

Save Early to Keep Living Your Dreams Post Retirement

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

Advantages of Pension Schemes and Retirement Plans

Is ULIP a Good Option for People Above 60?

यूलिप में 8 शुल्क जो आपको अवश्य जानना चाहिए

5 Reasons to Buy ULIP for a Secured Financial Future

Know Why You Should Stay Invested in Your ULIP Plan

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

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

What is Lock-In Period in ULIPs?

Is ULIP A Good Investment Option?

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

What Are Retirement Pension Plans?

What are ULIPs and their Types?

How Does NPS Work?

Top 4 Mistakes To Avoid While Planning For Your Retirement

How should one decide on fund allocation within NPS?

What is the difference between Life Insurance and ULIP?

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

What are the Benefits of ULIP - Explained

ELSS vs ULIP: Which is a Better Investment?

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

Saving for approaching retirement with retirement insurance

What is Partial Withdrawal in ULIPs?

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

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

How To Choose The Right Pension Plan?

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

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

Different Types of ULIP Investments in India

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

At What Age Should You Start Your Retirement Planning?

Importance of financial Planning for Retirement

How can NPS help you save tax?

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

Ten Signs That You're Ready to Retire

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

Importance of Retirement Planning

What is Fund Value in ULIP?

How to Win at Retirement Savings?

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

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

Is It Worth Buying ULIP Plans For 10 Years?

Tips to invest your voluntary retirement scheme money

Types of Retirement Plans

What tax benefits are there on saving for retirement?

How Safe is it to Invest in ULIP plans?

Can NRIs Invest in ULIP Plans Offered in India?

Which Pension Plan Suits You best?