Why plan now?
People are living longer, and medical costs and inflation keep rising. A structured plan gives you security, dignity and peace of mind later in life.
- Regular income after retirement
- Financial independence
- Protection against inflation
- Money set aside for healthcare
- A stress-free retired life
How retirement plans work
During the accumulation phase you invest regularly to build a corpus. At retirement you can take part of it as a lump sum, and the rest is converted into an annuity that pays a regular income.
Types of plans
01Pension plans
Guaranteed or market-linked income after retirement.
- Regular pension
- For conservative investors
02Annuity plans
Immediate or deferred pension payments.
- Stable cash flow
- Ideal for retirees
03ULIP-based plans
Insurance with market-linked investment.
- Higher return potential
- Flexible funds
In unit-linked plans, the investment risk in the portfolio is borne by the policyholder.
04National Pension System
A government-backed scheme with market-linked returns.
- Low cost
- Tax benefits
How big a corpus?
It depends on your current and retirement age, monthly expenses, inflation, life expectancy and lifestyle. Starting early means smaller investments can grow much further.
Tax benefits
Tax benefits are as per prevailing tax laws and are subject to change. Deductions under 80C / 80D apply to the old tax regime.
Common mistakes
- Starting late
- Underestimating inflation
- Ignoring healthcare costs
- Lack of diversification
- No professional guidance
Retirement plan or mutual funds?
Retirement plans give structured income and insurance benefits. Mutual funds give flexibility and potentially higher returns. A combination often works best.
Who should invest?
Insurance is the subject matter of solicitation. For details on risk factors, terms and conditions, please read the sales brochure carefully before concluding a sale.
In unit-linked plans, the investment risk in the portfolio is borne by the policyholder.
