Top Retirement Plans To Buy In 2022

Pension plans are sometimes known as retirement plans. You can contribute a portion of your pay to the allotted plan in this way. The main goal of a pension plan is to provide a regular income after retirement. Given the ever-increasing rate of inflation, investing in these programmes has become essential. Even if you have a large amount of investing funds in your bank account, you may require one.This is due to the fact that most investment monies are used to meet unanticipated needs. As a result, the ideal pension plan will support you when all other sources of income are no longer available.

• LIC’s Jeevan Nidhi Plan

This is a traditional profit-sharing pension plan that includes both protection and savings features.

Advantages of the Plan

• Vesting Benefit

The amount of the vesting benefit payable is equal to the Basic Sum Assured plus accrued Guaranteed Additions, vested Simple Reversionary bonuses, and any Final Additional bonuses, if any.

• Death Benefit

In the event of death during the first five years of the policy, the nominee will receive the Basic Payment Assured plus any accrued Guaranteed Addition in the form of a lump sum or an annuity, or a portion of the lump sum and the remainder in the form of an annuity.

• Rider Add-on

Accidental Death and Disability Benefit Rider from the Life Insurance Company.

Eligibility Details

1. Assured Minimum Base Sum
2. Regular Premium plans are worth Rs. 1,000,000. Under single premium policies, the sum insured is Rs 1,50,000.
3. Assured Minimum Basic Sum
4. There is no upper limit (the basic sum promised must be multiples of Rs. 5000/-) (in years).

Minimum Age of Entry

20-year

Maximum Age for Entry

Single Premium: 60 (nearest birthday) Regular Premium: 58 (nearest birthday).

• HDFC Life - Click2Retire

This is an online unit-linked pension plan that provides market-linked returns as well as a steady stream of income.

Product Benefits:

• Vesting Benefit

The higher of the fund value or the assured vesting benefit will be paid, with the assured vesting benefit calculated as follows: [101 percent +1 percent * (Policy Term minus Premium Paying Term)] * This is the total amount of premiums that have been paid.

• Death benefit

The fund value or 105 percent of the premiums paid will determine the death benefit payable..

Tax Benefits

They are eligible for deductions under Section 80C and Section 10(10A)(iii) of the Income Tax Act of 1961.

Eligibility Details

1. Entry Age: 45-75 years Vesting Age: 45-75 years
2. 18 to 65 years old at the time of entry
3. Payment Schedule for Premiums: Single Pay|8 Pay|10 Pay|15 Pay

• HDFC Life - Assured Pension Plan

This is a unit-linked pension plan that includes pension multipliers as a loyalty bonus.

Product Benefits are as follows:

• Vesting Benefit

The higher of fund value or assured vesting benefit will be paid, with assured vesting benefit computed as: [101 percent +1 percent * (Policy Term minus Premium Paying Term)] * Total amount of premiums paid.

• Death benefit

The fund value or 105 percent of the premiums paid will determine the death benefit payable.

• Tax Benefits

As permitted by Section 80C and Section 10(10A)(iii) of the Income Tax Act of 1961.

• Pension Multiplier

Beginning at the end of the 11th policy year, Loyalty Additions will be made.

Eligibility Details

1. Vesting Age :45 - 75 years
2. Entry Age:18 - 65 years
3. Premium Payment Term :Single Pay: 10|15 to 35 years 

8 Pay: 10|15 to 35 years10 Pay: 10|15 to 35 years 15 Pay: 15 to 35 years

• ICICI Pru - Easy Retirement

This is a unit-linked pension plan that guarantees you a return on your investment.

Product Benefits are mentioned below:

• Assured Benefit

You will receive an assured benefit or fund value at maturity, including the following assured benefits: 101 percent of the Assured Benefit (sum of all premiums paid and Top ups, if any)

• Death benefit

Fund Value or Guaranteed Death Benefit, whichever is greater, shall be paid, with Guaranteed Death Benefit being 105 percent of the Fund Value (sum of all premiums paid and Top ups, if any)

• Top ups

Make a minimum investment of Rs. 2,000/- in top-ups.

Eligibility Details

1. Premium: Rs. 48,000 No such limit on maximum
2. Premium Payment Frequency :Annual/Semi-Annual/Monthly
3. Age at Entry :35 - 70 years
4. Vesting Age :45 - 80 year
5. Premium Payment Term :5|10|Full Policy Term

• Max Life Guaranteed Lifetime Income Plan

This is a non-linked, non-participating instant annuity that provides a steady income stream for the rest of your life.

Product Benefits are as given below:

Annuity Options

1. Lifetime Annuity for a single person (without any death benefit)
2. A single life annuity that pays a Return of Premium (ROP) on death.
3. For the rest of your life, a joint life annuity (without any death benefit).
4. Joint Life Annuity with Return of Premium (ROP) payable on the death of the last survivor for the rest of their lives.

Payouts

For Single Life / Joint Life Annuity Plans with Return of Premium, the nominee will receive 100% of the purchase price (minus all relevant taxes, cess, and levies levied by the government) in the event of death (ROP).

Eligibility Details

1. Age :50 - 80 years
2. Premium: A minimum of Rs. 100,000 There is no maximum limit.

Take Away

A retirement plan can help you build a long-term financial cushion so that you can retire with a secure financial future. The insured must contribute a set amount on a regular basis until the time of retirement in a retirement plan.

Also read: How Can You Use Retirement Plans In Different Ways?

Mistakes You Must Avoid While Purchasing A Retirement Plan

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.