We work all our lives so that we could enjoy and live a comfortable life and provide for our family or for the ones who are dependent on us even after we stop working and go into retirement period. That is where retirement investment plans and financial planning after your retirement come in. Retirement plans should be an included investment in almost every individual’s life. It is crucial and significant to save enough when it’s time for your retirement.
Once you stop earning it’s obvious that your income stops and without having a saved-up amount and different financial plans it would be quite difficult for you to sustain without any income. Hence, there are different types of retirement investment plans that have different benefits and work differently as per your and your family’s needs.
It’s always a wiser option to have the knowledge and learn more about the types of investment plans that are there so that you make a good choice. However, first, learn what are retirement investment plans and why are they important for every individual.
What Is Retirement Investment Plan and Why Is It Important?
Retirement plans or commonly known as pension plans are the types of financial investment plans and policies that help you to accumulate and gather a part of your personal savings in small chunks over a long period of time so that you have a secured financial state even when the income stops coming. Retirement planning, initially, is a lifelong process and you can start planning it at any time of your career. However, it works best and more efficiently if you include it in your investments from the very beginning.
That is the exact best way to ensure and secure a safe and easy way to continue your income even long after you stop working. Once you reach your retirement age, you are no longer required to pay, you are now getting what you have paid all those years helping you to have a comfortable retirement.
Hence, experts and financial agents, and planners say that you should start with it as early as possible. Because the earlier, the better. What is the better way to be prepared for your life after the paid work comes to an end for both your financial life and another lifestyle that you prefer?
List of The Best Retirement Investment Plans In India That You Can Prefer
Now, that we are acquainted with the concept of retirement and pension plans and their importance in every individual’s life, let’s look at some of the best retirement investment plans for you to invest in –
LIC Jeevan Akshay VI Plan
The Jeevan Akshay VI Plan housed and offered by the LIC company is an immediate annuity plan. It means that you can buy this plan at once with a lump sum amount and this plan gets started right after you pay in the money. The features and benefits this plan offers us that there is no necessity for a medical examination to be held of the person holding the plan. The minimum entry age of this plan is 35 years and that can last till when a person turns 85 years. The pension plan annuity income can be availed either quarterly, monthly, or annually, as the plan holder wants.
SBI Life Saral Pension Plan
SBI is one of the most trusted companies in India that enjoys a very large customer base. The SBI life Saral pension plan can simply be the most advantageous of the plans because it is non linked, individually participated, traditional pension plan which allows the policyholder the protection from the fluctuations and Volatility that the share market causes. This plan also offers a guaranteed bonus for the first five years of the plan at the rate of 2.50% of the sum assured for the first three years and 2.75% for the rest of the two years. The minimum policy term is 10 years to 40 years, the minimum entry age is 18 goes to 65 years.
LIC Jeevan Nidhi Plan
This is a with a profits pension plan. The amount that is accumulated over the years in this plan is then used to generate a certain amount if pension for the policyholder based on his/her survival amount. The policyholder under this policy is guaranteed to have an addition of Rs. 50/- for the first five years per thousand sum that is assured as each year gets completed successfully. The policy term here ranges from 5 years to 35 years. Moreover, there is no maximum limit to the sum assured. Although, the minimum basic sum assured is Rs. 1 lakh for normal premium and Rs. 1.5 lakh for single premium policies.
HDFC Life – Assured Pension Plan
This assured pension plan housed by HDFC company is a unit-linked plan that offers the policyholders a market-linked profit with other bonus and loyalty additions to help the clients to meet their desired retirement goals. The minimum entry age of the policyholder ranges from 18 years to 45 years. The nominee will also be offered death benefits with the returns of 105% of the premium paid by then. After the policy goes beyond its 11th year, there are loyalty additions every alternate year.
Reliance Smart Pension Plan
The reliance smart plan is a non-participating unit-linked plan for retirement that allows the policyholder to save their amount in a systematic manner to achieve their goals of retirement as it generates a regular income after the retirement by building up a lump sum amount. The term of this policy ranges from 10 years to 30 years. The best part is it provides the holder the double benefit of equity participation and also capital guarantee in return. Moreover, the minimum vesting age is that if 45 years which also ranges to 75 years.
We sincerely conclude this blog and hope that by now you might have understood the meaning and importance of a retirement plan to include in your financial lessons and tabs. However, apart from choosing to invest in a plan, you should also take care and make a wise decision while which plan to choose to have maximum gains.