Pension Plans - Buy Best Retirement Plans in India 2026

Retirement And Pension Plans

Embrace your retirement years with confidence and security. Continue living the life you’ve always aspired to live, even after retirement. Our Retirement & Pension Plans are crafted to provide a stable and comfortable lifestyle, ensuring your hard-earned savings continue to work for you. Secure your future today, for a worry-free tomorrow with our comprehensive retirement planning solutions.

Guaranteed income post-retirement
Flexible premium payment options
Joint life coverage for loved ones
Return of purchase price benefits
Critical illness protection
Lifelong income stream

What are Pension Plans and Retirement Plans?

Pension or retirement plans are long-term financial products that help individuals build a dependable income stream for their post-working years. The plans involve periodic contributions during an individual's working years, which then accumulate over time to build a substantial retirement corpus. Upon maturity, the accumulated funds are used to provide either a lump sum or regular payouts, based on the chosen plan.

By having an early start and being consistent, you can build a solid retirement corpus that can give you long-term financial stability. Retirement plans and pension schemes for senior citizens can be especially useful for maintaining your current lifestyle after retirement while also allowing you to be prepared for unexpected costs. They help individuals sustain their standard of living without relying on others.

These plans often include life insurance components, offering death benefits to the nominee in the event of the policyholder's demise.

In India, pension plans are broadly classified into two types:

Deferred annuity plans, which allow savings accumulation over time and give payouts after a certain amount of time,
Immediate annuity plans, which begin payouts immediately upon investment.

Each type has specific benefits catering to varied retirement needs. It is advisable to research and select the right plan that meets your distinct needs.

Feature	Pension Plans	PPF (Public Provident Fund)	NPS (National Pension System)	Saral Pension Yojana
Core Benefit	Regular income + life cover	Safe long-term savings	Market-linked retirement savings	Immediate annuity after lump-sum investment
Type of Plan	Insurance-linked retirement + protection plan	Government-backed small savings scheme	Government-managed contributory pension scheme	Standardised pension plan regulated by the IRDAI
Eligibility	Usually 18–65 years (varies by plan)	Indian residents above 18 years	Citizens aged 18–70 years	Minimum age 40 years; no maximum age
Tax Benefits	Under Sections 80C and 10(10D)	Under Section 80C; EEE benefits	Sections 80CCD(1), 80CCD(1B)	Under Section 80C and 10(10D)
Premium/Contribution	Monthly/Quarterly/Annual or Lump sum	Minimum ₹500/year; maximum: ₹1.5 lakh/year.	Minimum ₹1,000/year (Tier I); No upper limit	One-time lump sum investment of ₹12,000.
Returns	9%–15% (approximately), depending on fund choice	Around 7.1% p.a. (fixed by the government)	Market-linked; average 8%–12% historically	Fixed annuity (rate varies by provider)
Risk Profile	Moderate	Very low	Moderate (market-dependent)	Very low
Payout Options	Lump sum, annuity, or combination	Full maturity value at the end of 15 years.	Up to 60% lump sum; rest in the form of annuity after retirement	Fixed monthly/quarterly/half-yearly/yearly pension
Withdrawal Flexibility	Partial/surrender on the basis of policy terms	Allowed after the 5th year on specific terms and conditions.	Partial withdrawal after 3 years (Tier I), on specific terms and conditions.	Surrender allowed under specific conditions
Lock-in Period	Varies per policy (typically 5–10 years)	15 years (extendable)	Until age 60 (Tier I)	Lifetime annuity starts immediately after the purchase
Death Benefit	Yes (if life cover is included)	No life cover, but the nominee receives full accumulated value	No life cover but the remaining pension corpus is paid out to the nominee	Return of purchase price to the nominee on the demise of the insured. Joint Life annuity options also available.
Best Suited For	People seeking insurance + retirement savings	Risk-averse, long-term savers	Individuals wanting flexible, market-linked pension	Those seeking simple, no-frills annuity plans

Feature

Pension Plans

PPF (Public Provident Fund)

NPS (National Pension System)

Saral Pension Yojana

Core Benefit

Regular income + life cover

Safe long-term savings

Market-linked retirement savings

Immediate annuity after lump-sum investment

Type of Plan

Insurance-linked retirement + protection plan

Government-backed small savings scheme

Government-managed contributory pension scheme

Standardised pension plan regulated by the IRDAI

Eligibility

Usually 18–65 years (varies by plan)

Indian residents above 18 years

Citizens aged 18–70 years

Minimum age 40 years; no maximum age

Tax Benefits

Under Sections 80C and 10(10D)

Under Section 80C; EEE benefits

Sections 80CCD(1), 80CCD(1B)

Under Section 80C and 10(10D)

Premium/Contribution

Monthly/Quarterly/Annual or Lump sum

Minimum ₹500/year; maximum: ₹1.5 lakh/year.

Minimum ₹1,000/year (Tier I); No upper limit

One-time lump sum investment of ₹12,000.

Returns

9%–15% (approximately), depending on fund choice

Around 7.1% p.a. (fixed by the government)

Market-linked; average 8%–12% historically

Fixed annuity (rate varies by provider)

Risk Profile

Moderate

Very low

Moderate (market-dependent)

Very low

Payout Options

Lump sum, annuity, or combination

Full maturity value at the end of 15 years.

Up to 60% lump sum; rest in the form of annuity after retirement

Fixed monthly/quarterly/half-yearly/yearly pension

Withdrawal Flexibility

Partial/surrender on the basis of policy terms

Allowed after the 5th year on specific terms and conditions.

Partial withdrawal after 3 years (Tier I), on specific terms and conditions.

Surrender allowed under specific conditions

Lock-in Period

Varies per policy (typically 5–10 years)

15 years (extendable)

Until age 60 (Tier I)

Lifetime annuity starts immediately after the purchase

Death Benefit

Yes (if life cover is included)

No life cover, but the nominee receives full accumulated value

No life cover but the remaining pension corpus is paid out to the nominee

Return of purchase price to the nominee on the demise of the insured. Joint Life annuity options also available.

Best Suited For

People seeking insurance + retirement savings

Risk-averse, long-term savers

Individuals wanting flexible, market-linked pension

Those seeking simple, no-frills annuity plans

What is Retirement Planning or Pension Planning?

Retirement or pension planning is a strategic approach to ensuring financial stability and security in one’s later years when regular income from employment ceases. It involves setting aside funds and investing in structured plans during one’s working life to create a steady income source for retirement. Such proactive planning allows individuals to maintain their desired standard of living, cover daily expenses, and manage healthcare costs, which often increase with age.
Retirement planning typically includes a combination of savings, investments, and contributions to retirement-specific financial products such as pension plans, Employee Provident Fund (EPF), and the National Pension System (NPS). Pension plans, in particular, are designed to provide periodic payouts or lump-sum payments once the individual reaches a specified age, known as the vesting age.
Pension planning is essential for financial independence, especially given rising inflation rates and healthcare expenses. It also enables individuals to take advantage of tax benefits. Many retirement plans in India offer deductions under Sections 80C, 80CCC, and other applicable sections of the Income Tax Act. Starting early provides the added benefit of compounding returns. It makes it easier to build a larger retirement corpus over time and ensure a comfortable, worry-free retirement.

Retirement Planning

Queries on Pension Plans

Retirement Corpus

Miscellaneous

When should I start planning for retirement?

Answer: In India, it’s advisable to start planning for retirement as early as your 20s or 30s. Early planning allows you to take advantage of compounding interest, ensuring a sufficient retirement corpus. Assess your financial goals and create a systematic investment plan aligning with your desired retirement age. Use a pension calculator to understand the sort of returns offered by the long-term plans.

What is the best retirement plan if I am self-employed?

Answer: Individuals in India who are self-employed can go for the National Pension System (NPS) or a Public Provident Fund (PPF). The NPS offers tax benefits and flexibility in investment choices. The PPF provides a safe, government-backed savings option with attractive interest rates and tax deductions under Section 80C.

How much should I save each month for retirement?

Answer: A good rule of thumb is to save at least 15% of your gross income each month for retirement in India. Depending on your retirement goals and current age, you may need to adjust this percentage. Consider investing in a mix of equity and debt instruments for optimal growth. Use a retirement or pension calculator to understand how your chosen plans will yield returns.

Can I have multiple pension plans?

Answer: Yes, you can have multiple pension plans in India. There’s no limit on the number of pension schemes you can invest in. Having multiple plans can diversify your retirement portfolio, helping you manage risks and achieve a larger retirement corpus over time.

What is participating and non-participating pension plan?

Answer: Participating pension plans in India allow policyholders to share in the insurer’s profits through bonuses, enhancing the overall returns. Non-participating plans, on the other hand, do not offer such bonuses and provide guaranteed benefits. Choose based on your risk appetite and expected returns.

Is there any Guaranteed Maturity Benefit (GMB) in Retirement Plans?

Answer: Many retirement plans in India offer a Guaranteed Maturity Benefit (GMB). It ensures you receive a predetermined sum at the end of the policy term, regardless of market performance. This provides financial security and peace of mind as you plan for retirement.

Can I take my pension at 55 and still work?

Answer: In India, you can choose to withdraw your pension at age 55 while continuing to work, but it may impact your future pension benefits. If you withdraw from a scheme such as the NPS, ensure you understand the implications on your retirement corpus and any tax consequences.

What is the Vesting Date or Vesting Age?

Answer: The vesting date in India refers to the period after which you have a legal right to your retirement benefits. In schemes such as the NPS, vesting occurs upon retiring or at the age of 60. For employer-contributed funds in EPF, you typically become vested after completing a certain number of years.

What happens to my pension plan if I change jobs?

Answer: If you change jobs in India, your pension plan may remain with your previous employer, or you can choose to transfer it to your new employer’s scheme. For EPF, you can transfer the accumulated balance to your new account to maintain continuity and avoid taxation.

What happens to a retirement fund if I die before withdrawing the money?

Answer: If you pass away before withdrawing from a retirement fund in India, the balance is typically transferred to your nominated beneficiary. For schemes such as NPS, the nominee will receive the accumulated corpus, and the process is governed by the scheme’s rules and applicable tax regulations.

Can I use a retirement account to finance real estate?

Answer: In India, certain retirement accounts, such as the Employee Provident Fund (EPF), allow for partial withdrawals to purchase a home. However, funds from accounts, such as the National Pension System (NPS), cannot be directly used for real estate investments until retirement.

What if I become disabled before retirement age and have to take disability?

Answer: If you become disabled before retirement, you may be eligible for disability benefits under the Employees' State Insurance Act or via private insurance policies. Additionally, you can withdraw from your provident fund without penalties if you provide medical proof of disability.

What are the penalties for withdrawing retirement funds early to buy your first home?

Answer: In India, withdrawing from your Employee Provident Fund (EPF) for purchasing your first home is allowed without penalties. However, if you withdraw from other retirement accounts, you may incur taxes and penalties. For EPF, ensure you meet the minimum service requirement of five years.

Is a spouse automatically the beneficiary of a retirement account owned by the other spouse?

Answer: In India, for many retirement accounts, the accountholder must designate a beneficiary explicitly. While spouses are commonly chosen as beneficiaries, it’s essential to complete the necessary paperwork to ensure your spouse inherits the funds in the event of your demise.

Can I change the Nominee of the policy?

Answer: Yes, in India, you can change the nominee of your retirement policy. Most retirement plans allow policyholders to update beneficiary details by submitting a request to the insurance provider. Ensure that you follow the specific procedures outlined by your plan for a seamless update.

Are retirement plans in India regulated?

Answer: Yes, retirement plans in India are regulated by the Insurance Regulatory and Development Authority of India (IRDAI) and the Pension Fund Regulatory and Development Authority (PFRDA). These regulatory bodies ensure retirement products are compliant, transparent, and protect the interests of policyholders.

How will my tax bracket be affected after I retire?

Answer: Your tax bracket in retirement will depend on your sources of income, such as pension, interest, or withdrawals from retirement accounts. If your post-retirement income is lower than your pre-retirement income, you may fall into a lower tax bracket. Ensure to plan withdrawals strategically to minimise tax liability.

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Retirement And Pension Plans

What are Pension Plans and Retirement Plans?

Why Do You Need Retirement Plans?

Financial Independence

Healthcare Needs

Unforeseen Expenses

Peace of Mind and Security

How Do Pension Plans Work?

Contribution Phase

Accumulation Period

Vesting Age

Annuity Options

Death Benefits

Example

Policy Starts with the Contribution Phase

Investment Phase Begins

Vesting Period Begins at Age 60

Annuity Options

Death Benefits

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Types of Retirement and Pension Plans in India

Deferred Annuity Plans

Immediate Annuity Plans

National Pension System (NPS)

Employee Provident Fund (EPF)

Unit Linked Insurance Plans (ULIPs) for Retirement

Public Provident Fund (PPF)

Senior Citizens Savings Scheme (SCSS)

Atal Pension Yojana (APY)

National Savings Certificate (NSC)

Pension Plans Vs. PPF Vs. NPS Vs. Saral Pension Yojana

Benefits of Retirement Plans or Pension Plans

Financial Security in Retirement

Protection Against Inflation

Tax Benefits

Wealth-Accumulation Over Time

Customisable Options for Payouts

Legacy and Estate Planning

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Who Should Invest in Retirement Plans?

Salaried Employees

Self-Employed Professionals and Business Owners

Young Professionals

Middle-Aged Individuals

Individuals Without Employer-Provided Pension Plans

People Looking for Tax-Saving Opportunities

Features of Pension Plans

Regular Income After Retiring

Flexible Premium Payment Options

Choice of Annuity Options

Tax Benefits

Nomination and Legacy Planning

Pension Plans – Eligibility Criteria

Age Requirement

Nationality

Income Documentation

Medical Requirements

IndiaFirst Finds

What is Retirement Planning or Pension Planning?

Reasons to Start Retirement Planning Today

Compounding Returns

Inflation

Tax Benefits

Long-Term Goals

What is the Right Amount to Save for Retirement?

Importance of Retirement Planning for Different Ages

Your 30s: Building the Foundation

Your 40s: Strengthening Your Portfolio

Your 50s: Optimise and Protect

60s and Beyond: Enjoy and Manage

How to Choose the Right Retirement or Pension Plan in India?

Assess Your Retirement Goals

Evaluate Risk Appetite and Investment Horizon

Compare Plan Features and Benefits

Analyse Returns and Fees

Consider Tax Benefits

Consult a Financial Advisor

Steps to Buy a Retirement Plan

Step 1

Define Investment / Income Goals