Planning for retirement is one of the most crucial aspects of personal finance, given the decline in the traditional pension system. The rising living costs, increased life expectancy, and limited social support in India have made it highly difficult to live a simple life with the limited money we usually have after all the expenses. In such a situation, building a reliable financial cushion for post-retirement years is necessary. A well-thought-out retirement plan not only provides a secure post-retirement life but also gives us peace of mind to maintain our lifestyle without compromise and meet unforeseen expenses without relying on others.
A wide range of retirement plans is available, catering to different financial goals, income levels, and risk profiles. From insurance-based annuity plans to mutual fund retirement schemes, multiple pension schemes are available in India to secure your life, and we have chosen the top 10 retirement plans, keeping all your needs in mind. So, whether you are a salaried employee or self-employed professional, these schemes provide flexibility and stability to help you retire comfortably.
List of Top 10 Retirement Plans in India
Tata AIA Fortune Guarantee Plan
A Non-Linked, Non-Participating Endowment insurance plan, Tata AIA Life Insurance Fortune Guarantee plan carries the burden of any uncertainty happening & works towards being prepared for the same. It covers throughout the policy term for the financial security of your family and a guaranteed lump sum on maturity to meet your financial goal. Its key features include maturity benefit from 114% to 276% of total premium paid, flexible policy term of 10, 11, 12, 15, and 20 years, 10-15 years of payment, higher benefits for female lives, options to enhance protection through riders, and tax benefit may available u/s 80C and 10 (10D) of the income tax act, 1961^.
ICICI Pru Easy Retirement Plan
Another best retirement plan in India, ICICI Pru Easy Retirement Plan, is a Unit Linked Pension plan. It offers equity-linked growth on your savings, along with an assurance guarantee, and helps build a retirement corpus that enables you to receive a sizeable income after retirement. Its key features include building a retirement corpus, protecting your savings through Assured Benefits, Limited, or a Regular premium pay term, invest additional money through topup, multiple annuity option, pension booster to boost retirement corpus, two investment fund option, increase/decrease premium payment term, avail switching and premium pay redirection, and tax benefits.
Aditya Birla Sun Life Empower Pension Plan
A Unit-Linked, non-participating pension plan, Aditya Birla Sun Life Empower Pension Plan, helps individuals build a retirement corpus through a single premium payment. It offers both a life cover for financial security and a pathway to a steady retirement income. Also, the plan has an accumulation phase where investment grows and an income phase where a policyholder receives regular payouts. Its key features include a single premium payment, life cover, and guaranteed addition (some versions of the plan offer guaranteed addition to boost the retirement corpus), and flexibility.
HDFC Life Click2 Retire Plan
Designed to build a retirement corpus and secure a financial future after retirement, HDFC Life Click to Retirement is the best pension scheme in India. It allows for early retirement as early as 45 years old. Its key features include no entry, premium, and allocation charges, assured vesting benefit, flexible premium payment option, death benefit, tax benefit, and annuity purchase. With numerous user-friendly benefits, it is a good pension scheme in India.
Axis Max Life Guaranteed Lifetime Income Plan
A non-linked non-participating individual life insurance savings plan, Axis Max Life Guaranteed Lifetime Income Plan, is designed to provide a guaranteed income stream either during the policyholders lifetime or to their beneficiary after their death. And provides an option to receive the purchase price back upon the annuitant's death. Its key features include guaranteed income, annuity option, flexible payout, death benefits, deferred annuity option, and free look period.
Bajaj Allianz Life Long Life Goal Plan
Designed for long-term financial goals, Bajaj Allianz Life Long Life Goal is a Unit-Linked insurance plan that offers a combination of life insurance coverage and market-linked investment opportunity to help build a corpus for a comfortable retirement. Its key features include ULIP structure, long-term goal focus, retirement income, return enhancer, return of mortality charge, flexible investment options, waiver of premium, and tax benefits. With numerous customer-centric features, it is one of the best retirement policies in India.
LIC New Jeevan Shanti Plan
Providing a guaranteed regular income stream, the LIC New Jeevan Shanti Plan is an annuity plan that has the option of purchasing a deferred annuity and can be purchased only by paying a lump sum amount. It provides an annuity payment of a stated amount throughout the lifetime of the annuitant. Its key features include retirement income, tax-deferred growth, flexibility in premium payment, lifetime income, no contribution limit, and death benefits.
ABSLI Empower Pension Plan
A unit-linked pension plan, ABSLI Empower Pension Plan, allows individuals to accumulate a retirement corpus through market-linked investment to provide a regular income stream after retirement. It is designed to remain in control of your destiny even during your second innings. Its key features include a single premium payment, market-linked investment, flexible payment options, guaranteed addition, partial withdrawal, fund switching, premium redirection, guaranteed rate of return, and extension of the accumulation period.
HDFC Life Systematic Retirement Plan
A non-linked, non-participating, deferred annuity plan, HDFC Life Systematic Retirement Plan is designed to help individuals build a retirement corpus and receive a guaranteed income stream during their retirement years. The plan allows a deferment period where the annuity period can be delayed, and provides a return of the total premium paid on death. Its key features include deferred annuity, guaranteed income, flexible premium patent options, flexible annuity payout, return of premium on death, and tax benefits. It is one of the best premium policies in India.
Conclusion
Planning for finances after retirement is a must to ensure a regular income stream when you have no primary income options. It helps maintain the living standard and reduces reliance on others. Basically it acts like a social security system to promote financial independence during old age. Many pension plans are available that mitigate the impact of inflation, allow for maintaining a desired lifestyle, provide tax advantages, and benefit from the power of compounding and accumulate a substantial corpus over time. From government plans to private plans, numerous pension plans are available to choose from. But, we have chosen the top 10 retirement plans in India to stay stress-free from financial uncertainty during retirement to live a happy life, as a well-structured pension plan not only provides financial security but also peace of mind.