A
pension plans are retirement plans, is an investment plan where a particular
amount is invested regularly in return for periodic payments, lump-sum, or a
combination of both post-retirements. This secure financial future
post-retirement.

Why Should you Invest in a Retirement
Plans?

Security for your hard-earned savings

In the absence of any concrete financial planning for retirement, the assets and invested funds remain prone to risk. Therefore, a investing in pension fund helps you secure your future and provides a peace of mind for your savings in the present.

2. Assurance of guaranteed Pension/Income

You must know, Pension plans provide a fixed pension after retirement for a specific period or throughout the lifetime based on option you have chosen. A guaranteed income on maturity allows you to pre plan your retirement years and stay ahead in the financial game.

3. Growth of Your Savings over a period

Everyone tries to save hard-earned money to use during old age. Pension plans can make your post-retirement years comfortable and safe by compounding your savings over the long term. So, the earlier you start investing your savings in a pension corpus, the more will you reap benefits of power of compounding.

4. Diversify Your Investments

Many pension plans allow you to choose the asset class you want to invest in based on your risk profile and financial objectives. You can select from equity, debt, or a mix of to diversify your investments. 

5. Tax Benefits on premium payments

Pension plans have tax benefits, such as

• Investments up to Rs 1.5 lakhs in retirement plans are eligible for tax deduction under section 80CCC.

6. Enhance Your Plan with Insurance Covers

Some retirement plans built in ability to add insurance covers to your plan, which help you in providing complete financial security during your retirement years. You can choose from a wide range of insurance riders as below.

• Death benefit during premium paying term.
• Accidental Death Benefit
• Permanent Disability Cover