What is a Pension Plan?
A pension plan ensures retirement income from insurance companies on a regular or lump sum basis for premiums paid over time. These plans help people who want to plan a peaceful retirement with much-needed financial freedom.
Why Should You Take a Pension Plan?
When you retire or grow old, the chances of earning money are slim, and you might have to depend on other family members for your financial needs. A pension plan provides financial freedom even in old age. You can go on a trip with your friends or you can invest or buy something useful for your grandchildren.
Types of Pension Plans in India
- ULIP Investments
- Deferred Annuity
- Immediate Annuity
- Guaranteed period annuity
- Pension plans with life cover
- Annuity certain
- Life annuity
Who Should Buy a Pension Plan?
Every individual who wants a reasonable living standard post retirement with fixed returns every year should buy a pension plan. You can buy a pension plan even at the age of twenty. So, plan early rather than never and opt for a pension plan for a secured post-retirement life.
