A Retirement Plan is a crucial financial instrument designed to secure your post-retirement life by creating a steady stream of income after you stop working. By investing in a well-structured pension plan during your employment years, you can build a corpus that ensures financial independence and stability in your retirement. These plans are tailored to help you meet your long-term goals, protect against inflation, and provide peace of mind for both you and your family. With several options available in India, selecting the right retirement plan is essential for ensuring a comfortable and worry-free future.
What is a Retirement Plan?
A Retirement Plan, also known as a Pension Plan, is a strategic investment option designed to ensure financial stability during your post-retirement years. It allows individuals to accumulate savings through either a lump sum investment or regular contributions throughout their working life. Upon retirement, these funds provide a steady income stream, helping to maintain your standard of living and meet daily financial needs. By securing a well-structured retirement plan, you can safeguard your financial future, allowing you to enjoy your retirement with peace of mind and independence.
Top 10 Retirement Plans in India 2024
The list below presents the top pension plans, guiding you in selecting the most suitable investment option for your retirement needs.
| Pension Plan | Entry Age | Maturity Age | Policy Term | Minimum Investment (Yearly) | Highlights |
| Tata AIA Fortune Maxima | 18 – 60 years | 100 years | 100 minus issue age | ₹12,000 p.a. (Limited) | Long policy term, high maturity age, flexible premium options. |
| Max Life Online Savings Plan | 18 – 60 years | 85 years | 5 – 52 years | ₹12,000 p.a. | Flexible policy term with good maturity age and tax benefits. |
| HDFC Life Click 2 Wealth | 18 – 60 years | 99 years | 20 – 64 years | ₹12,000 p.a. | Long maturity age with flexible policy term and regular income options. |
| Bajaj Allianz Life LongLife Goal | 18 – 65 years | 99 years | 99 years minus entry age | ₹25,000 p.a. | Comprehensive coverage till 99 years, high corpus-building potential. |
| ICICI Prudential Signature | 18 – 60 years | 18 – 75 years | 10 – 30 years | ₹30,000 p.a. | Strong policy terms with flexible investment tenure and high benefits. |
| PNB Goal Ensuring Multiplier | 18 – 60 years | 99 years | 39 – 99 years | ₹18,000 p.a. | Extended coverage, tailored for long-term financial security. |
| Canara Promise4Growth – Life | 18 – 60 years | 18 – 80 years | 10 – 30 years | ₹12,000 p.a. | Affordable premium, ideal for mid-term investment options. |
| Kotak E-invent – Retire Rich Plan | 18 – 50 years | 28 – 60 years | 10 / 12 / 15 / 20 years | ₹24,000 p.a. | Shorter maturity age, suited for targeted retirement planning. |
| Edelweiss Life Tokio Wealth Secure Plus | 18 – 60 years | 18 – 70 years | 5 – 25 years | ₹24,000 p.a. | Shorter policy term ideal for quick corpus-building with good tax benefits. |
| Max Life SWP – Long Term Income Plan | 18 – 60 years | 60 – 85 years | 60 – 80 years minus entry age | ₹11,000 p.a. | Low investment with steady long-term income potential. |
Features of Best Retirement Plans
1. AIA Life Insurance Fortune Maxima Plan
The Tata AIA Life Insurance Fortune Maxima is Designed to support long-term financial goals such as retirement planning and education savings, it offers market-linked returns and robust financial protection.
Features
- Type: Non-participating Unit-linked insurance plan.
- Policy Term: Up to 100 years minus the policyholder’s age at purchase.
- Maturity Benefit: Total fund value at maturity based on NAV.
- Death Benefit: Higher of base sum assured or 105% of premiums paid.
- Loyalty Additions: 0.20% for regular pay (from the 11th year), 0.35% for single pay (from the 6th year).
2. Max Life Online Savings Policy
The Max Life Online Savings Plan is a unit-linked, non-participating life insurance policy offering market-linked returns and financial protection, with two variants for enhanced death coverage or greater returns.
Features
- Maturity Benefits: Fund value at maturity based on NAV.
- Death Benefits: Highest of sum assured, 105% of premiums paid, or fund value (Variant 1); sum assured, 105% of premiums, plus family income benefit (Variant 2).
- Surrender Value: Fund value minus discontinuance charge.
- Tax Benefits: Tax advantages on premiums and maturity benefits under The Income Tax Act, 1961.
- Charges: No Premium Allocation or Policy Administration charges; only Mortality and Fund Management charges apply.
3. HDFC Life Click2Wealth Plan
A unit-linked, non-participating life insurance policy designed to help you achieve financial goals while providing life cover.
Features:
- Plan Options: Includes Invest Plus, Premium Waiver, and Golden Years Benefit for various financial needs.
- Fund Choices: 11 fund options to tailor your investment portfolio.
- Flexibility: Allows fund switches, premium redirection, and partial withdrawals.
- Top-ups: Option to invest additional amounts to enhance returns.
- Life Insurance Coverage: Provides financial protection for your family.
4. Bajaj Allianz Life LongLife Goal Plan
A non-participating ULIP offering flexible investment options and comprehensive life cover.
Features:
- Maturity Benefits: Fund value at maturity, provided the policy is active.
- Death Benefits: Higher of fund value or sum assured payable to the nominee.
- Partial Withdrawal: Available after the 5th year with minimum withdrawal of Rs. 5,000.
- Tax Benefits: Exemption on maturity, death benefits, partial withdrawals, and premiums.
- Life Coverage: Provides life cover until age 99, with options for periodic returns and premium waivers.
5. ICICI Prudential Signature Plan
A versatile ULIP offering comprehensive life cover and flexible investment options.
Features:
- Whole Life Coverage: Benefits extend until age 99 with the Whole Life policy term.
- Systematic Withdrawals: Option for regular withdrawals from the policy.
- Tax Benefits: Tax advantages on premiums and benefits.
- Portfolio Strategies: Choose from four strategies and a diverse range of funds.
- Wealth Boosters: Wealth boosters provided at intervals starting from the 10th policy year.
6. PNB MetLife Goal Ensuring Multiplier (GEM)
A ULIP offering comprehensive life cover and diverse investment options.
Features:
- Fund Boosters: Boosters provided at the end of the 10th, 15th, 20th, 25th, and 30th years.
- Premium Waivers: Waivers available in case of critical illness.
- Return of Charges: Refunds on fund management and premium allocation charges.
- Investment Options: Choice of 14 funds including self-managed and life-stage strategies.
- Coverage Options: Five coverage options including Goal Assured and Income Assured.
7. Canara HSBC Life Insurance Promise4Growth
A versatile ULIP offering tailored investment and insurance solutions.
Features:
- Three Plan Options: Choose from Promise4Wealth, Promise4Care, or Promise4Life based on your life stage.
- Return of Mortality Charges: Mortality charges added back to the Fund Value at maturity.
- Premium Funding Benefit: Ensures continued savings contributions even if you’re absent.
- Loyalty and Wealth Boosters: Loyalty Additions every 5 years from the 5th year, and Wealth Boosters every 5 years from the 10th year.
- Multiple Funds and Portfolio Options: Choose from 9 funds and various portfolio management strategies.
8. Kotak e-Invest Retire Rich Plan
A comprehensive investment plan offering market-linked returns with added life insurance protection.
Features:
- 100% Premium Allocation: All premiums paid are fully invested into the funds.
- Yearly Additions: Enhance your fund value from the 6th policy year until maturity or death.
- Return of Mortality Charges: 25% to 200% of Life Cover charges added back to your fund value.
- Multiple Plan Options: Choose from Maximiser, Rising Star for Triple Protection, or Retire Rich for extended coverage.
- Flexible Investment Strategies: Select between Self-Managed or Age-Based Strategies based on your risk profile.
9. Edelweiss Life Tokio Wealth Secure Plus
A non-participating unit-linked insurance plan designed to provide guaranteed life cover and maturity benefits.
Features:
- Guaranteed death and maturity benefits.
- Choice of 7 funds with unlimited switches under the Self-Managed Strategy.
- Additional allocations of up to 7% of premiums paid.
- Rising Star Benefit ensures continued coverage for your child in your absence.
- Tax benefits on premiums and maturity amounts.
10. Max Life Smart Wealth Plan (SWP)
A long-term income plan designed to provide guaranteed income and financial security.
Features:
- Guaranteed income for up to 25 or 30 years, with flexible payment options.
- Terminal benefit equal to total premiums paid at the end of the income term.
- Accrued guaranteed additions during the last four policy years.
- Save the date option for customized income disbursements.
Read More
- Factors To Consider When Planning For Your Retirement
- What Are the Lifecycles of Retirement Planning?
Conclusion
Choosing the right retirement plan is essential for ensuring a secure and comfortable life after your working years. Retirement plans in India offer a wide range of options that can be tailored to fit individual financial goals and long-term aspirations. From guaranteed incomes and tax benefits to flexible withdrawal options, these plans provide a comprehensive solution to managing post-retirement expenses. By investing in the right retirement plan, you can achieve financial independence and peace of mind, allowing you to enjoy your golden years without financial stress.
