Pension plans from Insurance companies are structured in such a manner that they provide you financial security when your regular income ceases. These plans offer a financial security in the event of unfortunate demise of the life assured. And on successful completion of the term of the policy provide you a corpus which then is invested in a regular income scheme to provide you a regular income (annuity) post your retirement.
The need for Retirement planning
has increased many folds because of the lack of social security scheme and reliable pension schemes. From the year 2003 onwards even the Govt jobs aren't pensionable and one can opt for the new pension scheme on a contributory basis. As most of us are employed in private sector, and hence there is no pension post retirement one must opt for a retirement plan
and start early for one’s retirement planning. Given the higher inflation even the employer pensions are not sufficient enough to meet your regular expenses post retirement. With increased life expectancy and higher cost of living retirement planning is more critical today. You can buy a standalone retirement plan or a pension plan or opt for a sound retirement planning with the help of an Expert in retirement planning.
Mutual Funds also offer pension plans, but they are linked to the market and there is no fixed return available on such instruments. Before an investor decides to buy a standalone pension plan, he may look at evaluating other options which can be used in a combination to reduce the cost and maximize the returns on the investment portfolio.
The first step before an investor buys a pension plan is to check his current position and future requirements. You can do it through our Retirement Planning Calculator
. Consult our Financial Planning Expert now, before you buy a pension plan. We have done a comparative study of various options available in the market and the solutions are tailored to your requirement.