Types of Pension Plans for Your Retirement

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


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

Types of Pension Plans for Your Retirement

Understanding the types of pension plans for retirement can help you narrow down the search for the right plan for a financially independent retirement.

  • Oct 10, 2021

Retirement can open up some new exciting possibilities in life. However, it is essential to be financially independent and stable during your retirement to enjoy your newfound freedom from the responsibilities you have shouldered all your life.

For this, it is vital to have a pension plan that can take care of your regular finances through regular pension pay-outs once your retirement commences.

While people today are interested in exploring different pension plans on offer, understanding the types of such plans can help narrow down the search for the right one significantly.

Participating Pension Plans

Participating pension plans share the fund’s profit with the insured person in the form of bonus payment. The bonus is provided in addition to the sum assured and death benefits.

Additionally, the insured person can opt for some optional riders as well.

Non-Linked Non-Participating Plans

  • Immediate Annuity Plans

  • One of the most popular pension plans in India, here an individual pays a one-time lump sum amount as premium payment and immediately starts receiving a fixed pension until his/her death or 99 years of age, whichever is earlier

    The amount of pension to be received depends upon various factors such as The premium amount The chosen annuity option, such as

      The age of the policyholder during the purchase of the plan.

      Lifetime pension

      Lifetime pension with cash-back

      Lifetime pension with term guarantee

      Lifetime pension with a full pension to the surviving spouse

      Lifetime pension with a half pension to the surviving spouse

      Cash-back to the nominee after the death of both spouses

  • Deferred Annuity Plans

  • In these plans, the individual starts getting a pension after a pre-agreed deferment period, varying from 1 to 10 years. The rest of the terms and conditions are similar to that of an immediate annuity plan.

Other Government Schemes

Apart from the pension plans discussed above, there are also some government schemes and plans like EPF, PPF, or NPS.

While government pension plans can also be a good option, they generally have a maximum cap on investing. For instance, you can’t invest more than Rs. 1,50,000 in a PPF account in a financial year.

Therefore, you might fall short of achieving your retirement corpus by solely relying on government plans.

Get an Edge over Market-Linked Financial instruments with Pension Plans

While market-linked financial instruments can help you get potentially higher returns, they also come with risks related to market volatility. On the other hand, pension plans provide the safety of stable returns that are completely insulated from market volatilities. Hence, it is important to include a mix of both while building your retirement corpus.
Therefore, start by analysing your finances and choose the type of pension plan that suits your needs. After all, you don’t just buy a pension plan, you invest in the peace of mind in old age.

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

Kotak e-Invest

Download Brochure


  • Return of Mortality Charges*$
  • Enhanced Protection
  • Multiple Plan Options
  • Zero Premium Allocation Charges
  • Tax Savings^

Ref. No. KLI/22-23/E-BB/521


- A Consumer Education Initiative series by Kotak Life

Similar Articles

What are the Advantages and Disadvantages of ULIP?

What is a Defined Benefit Plan and How it Works?

Benefits Of Retirement & How Investments Can Help You Enjoy Them

What are the Differences Between ELSS ULIP and Mutual Funds?

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

Tips to invest your voluntary retirement scheme money

Types of Retirement Plans

How should one decide on fund allocation within NPS?

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

What are the Instruments Available for Building a Retirement Corpus?

Save Early to Keep Living Your Dreams Post Retirement

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

Know Why You Should Stay Invested in Your ULIP Plan

Retirement: A New Start to Life!

Can NRIs Invest in ULIP Plans Offered in India?

What is Partial Withdrawal in ULIPs?

What are the Benefits of ULIP - Explained

A Quick Guide to Retirement Plans

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

Retirement Planning for Millennials

What are ULIPs and their Types?

What is Lock-In Period in ULIPs?

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

Is ULIP a Good Option for People Above 60?

NPS for Housewife

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

How can NPS help you save tax?

Give Your Retirement Savings A Booster-Shot with Annuities

यूलिप के 8 शुल्क

How Do Annuity Options Work In NPS

Can I Surrender My ULIP Policy after 2 Years?

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

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

5 Notable Investment Options for Retirees

Top 6 Reasons Why You Should Get A Pension Plan

Do ULIPs Give Good Returns On Investments?

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

What are the things to consider before buying ULIPs?

What is the Minimum Lock-in Period for ULIP?

What are the Charges Levied on ULIP?

The Significance of Number 8,000 in Retirement Planning

5 Reasons to Buy ULIP for a Secured Financial Future

Saving for approaching retirement with retirement insurance

Terminologies You Should Understand About Retirement Plans

How To Keep Your Retirement Accounts from Being Hacked?

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

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

How To Make Most of Your Money After Retirement?

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

How has ULIP Grown Over the Last 3 years?

How to Win at Retirement Savings?

Importance of Retirement Planning

How To Choose The Right Pension Plan?

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

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

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

Different Types of Retirement Schemes

Ten Signs That You're Ready to Retire

Which Pension Plan Suits You best?

5 Steps to Gift a Smart Retirement Plan to Your Parents

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

Inflation: A Key Factor to Consider into Retirement Planning

Which Is Better: ULIP or SIP?

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

7 Secrets that can Make Your Post-Retirement Phase Prosperous

FAQs on Taxation of ULIPs

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

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

Retirement planning with a systematic life insurance plan

What are the Rules for Exit From NPS?

ELSS vs ULIP: Which is a Better Investment?

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

Is the ULIP Policy Surrender Value Taxable?

What Are Mortality Charges In ULIP?

Why Should You Invest in NPS?

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

How Does NPS Work?

How Does Pension Plans in India Works?

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

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

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

Is ULIP a Complex Financial Product?

What Are Retirement Pension Plans?

Is ULIP A Good Investment Option?

How Much Corpus Does One Need for Retirement?

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

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

5 Common ULIP Myths That You Should Stop Believing

Benefits of Early Retirement Planning in India

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

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

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

Calculating a Retirement Corpus that can Support Your Lifestyle

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

Top 4 Myths About ULIP Investments You Should Know

Advantages of Pension Schemes and Retirement Plans

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

Important Questions To Ask Yourself Before Choosing A Good Retirement Plan

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

यूलिप के फायदे (Benefits of ULIP in Hindi)

Is It Worth Buying ULIP Plans For 10 Years?

What are the Uses of ULIP?

Different Types of ULIP Investments in India

Top 4 Mistakes To Avoid While Planning For Your Retirement

Top Investment Options for Retirement Planning

Invest for your second innings with a guaranteed savings plan

How Can I Achieve My Wealth Goal with ULIP Investment?

8 Charges in ULIP That You Must Know

Retirement Planning Guide for Working Men and Women

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

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

At What Age Should You Start Your Retirement Planning?

Meaning of Sum Assured in a ULIP

ULIP Plan or Traditional Insurance Plans - Which is better?

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

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

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

Best Insurance Plans for a Guaranteed Monthly Income After Retirement!

Is ULIP Better Than FD?

Are Annuities Great For Early Retirement?

Why You Should Invest In An Annuity Plan?

Top 6 Flexible Benefits That ULIPs Offer

Demystifying the Retirement Planning Process

Do Pension Plans Allow any Death Benefits?

How Safe is it to Invest in ULIP plans?

What is Fund Value in ULIP?

A Beginner's Guide to Understanding 401k Retirement Plan

What Happens to ULIP Premiums Paid if the Market Crashes?

Importance of financial Planning for Retirement

Retirement Planning at 50? You Are Still Good to Go

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

Understanding Annuity Plans

What tax benefits are there on saving for retirement?

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

What is ULIP and Its Benefits?

How Has NPS Performed in Comparison with Other Instruments?

How Does ULIP Work in India?

What is the difference between Life Insurance and ULIP?

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

Un-Retirement - Are You Ready For It?

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

Benefits of Early Retirement Plans

What is a Retirement Plan - What are its Features?

Long Term Investment Guide for Your Retirement

Pros and Cons of Retirement Annuities

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

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

Why ULIP Should Be a Part of Your Investment Portfolio?

What Are Superannuation Benefits?