Top 10 Pension Plans In India You Should Choose In 2022

A pension plan or retirement plan is the most preferred investment option that has gained enormous popularity over the past few years.  The best pension plans in India are ideal for those who want to save a considerable amount for their healthy retired life.

A pension scheme in India not only offers financial assistance to a person but also helps overcome all untoward expenses due to an emergency after retirement. The pension plans in India are a boon for senior citizens. These types of retirement plans in India also allow a flow of income even after retirement.

What is a pension?

A pension plan helps you to accrue a portion of your savings over a long-term period. This amassed amount will fortify your financial status in the future.

In retirement investment plans, a customer needs to pay a certain amount regularly till the time of retirement. This accumulated amount is returned to the insured person as pension or annuity at regular intervals. The best retirement plan in India helps a person to face all eventualities without any financial stress after retirement.

Types of Pension Plans in India

Let’s consider various types of retirement pension plans in India before identifying which one of them is the best pension plan in India:

• Deferred Annuity
• Immediate Annuity
• Annuity Certain
• Life Annuity
• Nation Pension Scheme (NPS)
• Pension Funds
• Whole Life ULIPs
• Defined Benefit
• Defined Contribution

Popular pension plans that you must consider in 2022

Let us now have a look at the best retirement plans to rule in India in 2022:

1. Aditya Birla Sun Life Empower Pension Plan

This is a popular non-participating unit-linked pension plan that inspires you to save a certain amount so that you can lead a healthy retired life.

Some features are:

•       The minimum entry age is 25 years and the maximum age is 70 years
•       The insured person is free to choose from 2 different annuity pay-out options (assured option and self-managed option)
•       Apart from investment returns, the plan also offers insurance coverage
•       Since this is a deferred annuity plan, hence the accumulation period can be from 5years (minimum) to 30 years (maximum)

2. LIC Jeevan Akshay 6 Plan

If you want the best retirement planning schemes in India, then you must opt for this plan. This plan is ideal for those who need an immediate annuity. Once you purchase the plan, you will start receiving a pension.

Some features of the plan are:

•       The minimum entry age is 30 years and the maximum age is 85 years
•       You will receive the pension amount either monthly, quarterly, half-yearly or yearly
•       To avail of the policy, no medical test is required
•       Minimum purchase price of Rs 1 lakh for offline distribution channels and Rs 1.50 lakh for online distribution channels
•       There are no maximum limits for the purchase price, annuity, etc.
•       You need to show your age proof before purchasing the plan
•       Tax benefits on your paid premiums

3. SBI Life Saral Pension Plan

To lead a worry-free future, you must purchase this non-linked, participating, and conventional pension plan.

Some features are:

•       The minimum entry age is 18 years and the maximum is 65 years
•       The minimum maturity age of 40 years and the maximum of 70 years
•       Though there is no maximum limit for the sum assured, the minimum sum assured amount is Rs. 1 lakh
•       A customer can choose his/her premium modes
•       Through SBI Life Preferred term rider, you may enjoy life cover
•       Guaranteed bonuses will be offered for the first 5 years

4. HDFC Life Click2 Retirement Plan

This pension online unit-linked plan will certainly satisfy all your post-retirement needs and requirements.

Some features are:

•       The plan offers guaranteed vesting benefits and additional gains from the market
•       The minimum entry age is 18 years and the maximum age is 65 years
•       The minimum maturity age is 45 years and the maximum age is 75 years
•       The plan offers the death benefits to beneficiaries (105% of the premiums)
•       You can enjoy the tax benefits under Section 80C and Section 10(10A) of the Income Tax Act 1961

5. HDFC Life Assured Pension Plan

This unit-linked best pension scheme embraces policyholders with market-linked returns and loyalty additions.

Some features are:

•       Guaranteed vesting benefits and additional gains from the market
•       After the completion of the 11th year, the loyalty benefits start and you will get them every alternate year.
•       The minimum entry age is 18 years and the maturity age is 45 years
•       Death benefits are given to the nominee (105% of premiums paid till then)

6. ICICI Pru-Easy Retirement Plan

If you want to get a regular income post-retirement, then this plan could be the best option for you.

Some features are:

•       Your minimum premium amount will be Rs 48,000 per annum but there is no maximum limit
•       You are free to choose your premium modes (Monthly, half-yearly and yearly payment)
•       The minimum entry age is 35 years and the maximum age is 70 years
•       The policy is offered for 10, 15, 20, 25, and 30 years
•       Based on the terms and conditions of the policy, the premium payments can be increased or decreased

7. Bajaj Allianz Pension Guarantee

This immediate annuity plan offers a guaranteed regular income after your retirement.

Some interesting features are:

•       Under this plan, you will be blessed with six annuity options
•       The minimum entry age is 37 years and the maximum age is 80 years
•       Minimum purchase price of Rs 25,000, but no limit for the maximum purchase
•       The minimum annuity installment is Rs 1,000(monthly) and the maximum annuity installment is Rs.12,000 (yearly)
•       The annuity will be extended to the spouse

8. Maxlife Guaranteed Lifetime Income Plan

This non-linked traditional annuity plan is another intriguing retirement plan.

Some features are:

•       You will get life-long payments till you and your spouse will alive
•       After the death of the policyholder, the purchase price of the policy is returned to the beneficiary
•       You may receive the payment amount on a monthly, quarterly, half-yearly or yearly basis
•       Four annuity options are given

9. Birla Sunlife Power Pension

This non-participating and unit-linked plan will strengthen your savings after your retirement.

Some features are:

•       The minimum entry age is 25 years and the maximum age is70 years
•       A policy purchaser can choose his/her policy premium amount option
•       Option to choose vesting date to have accumulation period of 5 – 30 years
•       Depending on your risk appetite, you can select your risk profile

10. Reliance Immediate Annuity Plan

This non-participating and non-linked plan converts your accumulated amount into a regular income so that you can comfortably meet all your post-retired necessities.

Some features are:

•       The plan comes with 3 different annuity options
•       The minimum entry age is 20 years and the maximum age is 80 years
•       The annuity can be given half-yearly, annually, monthly or quarterly
•       The minimum annuity installment amount is Rs. 1000, but there is no maximum limit

These are the top 10 pension plans in India that you must consider in 2022. Most of these offer a pension online. To lead an independent and stress-free retired life, you must choose the best option among these plans after a careful study and comparison of their features.