Best Pension Plans in India – List of Top 10 Pension Plans available for Investment

This article is especially constructed for people who are in search of the Best Pension Plans in India. We have all the information there is, about the Top 10 Pension Plans.

Retirement from the job is a significant phase of every individual who has spent most of their time working in a company.

Unlike government services, every private sector employee must secure their future with a decent pension scheme. Now, the question is – which one to choose?

To get that answer, we have researched a lot and found out 10 best pension schemes in India right now.

Of course, before that, you need to know a bit more about what pension scheme is, and why should you get one for yourself. So, let us dive in.

Best Pension Plans in India – Top 10 Pension Schemes for Investment

The following is a list of the best pension plans available in India right now:

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Deferred Annuity Pension Plan – Best Pension Plan in India

If you are looking for a pension scheme that offers guaranteed income, the Deferred Annuity Pension Plan is the way you should probably go.

You can buy such insurance plans by paying yearly premiums or a one-time lump sum amount to avail the service.

These plans are typically long-term investments where you can get either lump-sum amount at one go, or split amounts every month or year, at the time of maturity.

Immediate Annuity Pension Scheme – Top Pension Plan in India

The Immediate Annuity Pension Plan is pretty much similar to the Deferred Annuity Pension Scheme.

Most of the terms are more or less the same expect the pay-out at the time of maturity is almost immediate; hence, the name.

These are also long-term investments where you can pay the premium amount on either at one go or every year. You can also get additional tax exemptions while you avail this plan.

Certain Annuity Pension Plan – Top 10 Pension Plan in India

If your priorities lie with getting a high-value lump-sum amount, the Certain Annuity Pension Plan is ideal for you.

This is a form of investment where you will get a ‘certain’ percentage of guaranteed return for a specific period.

So, there are two things that you should remember. First, there is an expiration date when you will not get anything else for your future.

Second, as there is an expiration date, you will get a significantly higher return.

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With Cover and Without Cover Pension Schemes – Best Pension Plan

A With Cover Pension Plan indicates that your life is insured, whereas, the Without Cover Pension Scheme is the reverse of it.

If you are looking for a composite pension scheme which also has life insurance benefits, you should consider With Cover Plan.

Here, the nominee of your account will get an immediate disbursement after your sudden death. Now, a Without Cover can be like any other pension scheme where there are no life insurance benefits.

Guaranteed Period Annuity – Top Pension Plan

If you want to get a pension plan with fewer complexities, we suggest you should invest in Guaranteed Period Annuity scheme.

The plan is pretty straightforward, where you will get an assured return at its maturity. One other benefit is you will get the life insurance coverage in this plan as well.

So, your family member, whom you have selected as the Nominee, will get an immediate lump-sum disbursement in case of an unfortunate event.

Life Annuity Pension Plan – Top 10 Pension Plans

You can say that the Life Annuity Pension Plan is one of the native forms of pension scheme ever constructed.

In this plan, you will get an assured sum amount at the preferred interval you choose – monthly, quarterly, or annually till the time you die.

Even your spouse will get the coverage after your death.

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Life ULIP Plan – Best Pension Schemes in India

If you are an adventurer, willing to take some calculated risk while choosing a pension plan, we recommend the Life ULIP Plan.

It is a bit unconventional from all other insurance plans we have covered so far.

Where we were discussing guaranteed returns for all the other plans, here a significant portion of your investment amount will get reinvested in Equity and Debt Funds.

However, there is a life insurance coverage with this plan too.

Defined Benefit Pension Scheme – Top Pension Schemes in India

Defined Benefit Pension Plan is typically sponsored by a company employer where you work.

Now, it can be in any form – a lump-sum amount, a regular monthly pension, or can be a combination of both.

Meanwhile, one can add several customized terms that benefit both you and your boss in the longer run.

The amount may vary on a number of factors that includes the tenure at service, your age, your remuneration, and many more.

Defined Contribution Pension Plan – Top 10 Pension Schemes in India

The core difference between a Defined Benefit Pension Scheme with a Defined Contribution Pension Scheme is, both you and the employer you work for contribute a certain amount which eventually sets up the funds while you retire.

Here, a predefined portion of your salary will go straight to the pension funds. On the other hand, the employer does that same.

So, both parties accumulate funds for a long period, which makes your retirement easy.

National Pension System (NPS) – Best Pension Plan in India

The National Pension Scheme (NPS) is a government project under which you will get 60% of the fund. The remaining 40% is further reinvested in buying annuities.

At first, it was only for the government employees but later availed publicly. One of the major benefits of getting aboard with the NPS is for its tax-saving benefits.

The Pension Fund Regulatory and Development Authority manage this entire operation, and are doing a pretty good job.

Pension Funds – Top 10 Retirement Schemes

The Pension Plans are not the usual set of investment which you typically plan at the time of retirement.

Instead, these are high-value investments to get high returns. Of course, the risk factor is high, but returns are handsome indeed.

Overall, we should say that if you have decent knowledge and have confidence, then you can reap a massive fund after you retire.

Understanding Pension Plans

In simple terms, a pension scheme, or some also call it a retirement scheme, is a form of investment.

Here, you will get an assured sum amount based upon the amount you have invested over a particular period.

It is, of course, a long-term investment strategy of a minimum of 15 years to get what you are looking for.

The idea is to get back your saved funds along with the amount that has been compounded every year.

Now, there are several other benefits while you are investing in pension plans, which we will highlight later.

Why Pension Schemes are pivotal?

There can be several reasons why you should avail a pension or a retirement plan. Let us start with the obvious one – inflation.

The cost of living is increasing exponentially, and without a proper backup, you will not survive one day.

Moving on, we have health issues. At any given point of time, you or your family member may incur health related issues, which can drain your hard-earned money.

So, it makes sense to prepare a strong foundation.

Apart from all these typical reasons, you should also keep in mind that life is always uncertain, any form of an emergency may arise.

So, an adept pension plan is almost mandatory to maintain balance in life.

Conclusion – Best Pension Plans in India

So, these are the best pension plans that you should consider while you are in India. Of course, there are millions of companies, offering thousands of pension schemes.

We, however, selected those which are popular and have credibility.

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