Best pension plans to invest in 2019

Overview

It’s better to prepare for the uncertain future, today only. Not only would that be smart but it’s wise too. A constant stream of income would be a better call to make now. Your loved ones too should benefit from your hard work and smart decisions. Which is where pension plans come into place. So we will help you decide which is the best pension plan that meets your requirements. 

As a common man, inflation and global disturbances can create financial problems. A pension plan is the one where the person invests some money and in return gets the invested money including the interest earned on it after the retirement of the person. In India, there are mainly 3 types of pension plans operating as of now and these are:

• Civil Servant’s pension.
• The mandatory pension plans run by the employee’s provident fund organization.
• Unorganized sector pension called the National Social Assistant Programme (NSAP).

Importance of Pension plans

• With the rise in life expectancy of a person, the person now needs more money than ever after the retirement. Before this life expectancy was 68 (approx) years and now it has risen due to medical enhancements by up to 20 years. Keep reading on monthly income plan.
• India lacks a system where constant security is ensured to people who are either retired or disabled. This security is called social security. And so, we have to be prepared by ourselves.
• Due to the medical enhancements (mentioned above), there is a rise in the cost of health. Cost of medications, hospitalization is soaring day by day. In addition to this, inflations mar the normal functioning of the economy even more.
• Who wouldn’t want a regular stream of income to ensure the day to day expenditures? This will help you lead a more relaxed and healthy lifestyle. In some cases of pension plans, there is an option of bonuses as well.
• Under section 80C of the Income Tax Act, the investments made in pension schemes at an early age qualifies for a tax exemption.

Choose Best Tax Saving Investment Option

How to choose the best pension plan in the market?

First, before choosing any pension plan, try and focus what your objective is. Now, analyze the best pension plan in the market that matches your requirement.

Best investment plans to invest in 2019

Immediate annuity

According to this plan, you need to invest a lump sum amount and the payments would start immediately after this. It could be monthly, quarterly or annually or as the case may be.

Deferred annuity plans

In this type of plan, the deposition of money is in small amounts and the payouts are in monthly and the money would be back into your account once the policy term is over. This type of pension plan is free from tax.

Plans with and without life cover

In the case of life coverage, the payment of the amount would be in a lump sum to your loved ones. In the case of without life cover, only the amount invested or premiums paid would be returned to the family. The returned money, in this case, could be with or without interest.

National Pension Scheme (NPS)

The money invested in National Pension scheme involves investing in equity and debt markets as per the preference of the investor. 40% must be invested in the annuity plan and 60% can be withdrawn at the time of maturity.

5 Pension schemes in India

LIC Jeevan Akshay 6 Plan (best pension plan)

Under LIC Jeevan Akshay, you can buy this scheme by paying a lump sum amount and the payout starts immediately.

Benefits

• You can receive the payments monthly, quarterly or annually.
• There is no need for a medical examination.
• The premium on the pension plan is free from tax.

Tax charged on mutual funds

LIC Jeevan Nidhi Plan (best pension plan)

LIC Jeevan Nidhi plan is a with deferred annuity plan. The amount accumulated (including sum assured, guaranteed actions and bonuses) is used to generate pension for the account holder.

Benefits

• The premiums paid are free from tax under section 80C of the Income Tax Act up to Rs. 1.5 lakhs.
• There is no maximum limit for the basic sum.
• There is a provision of Rs. 50 per thousand sums assured for each completed year (only for the first 5 years).

HDFC Life guaranteed pension plan (best pension plan)

You can take this option only on a single life basis.

Benefits

• Tax exemptions on the basis of section 80C of the Income Tax Act.
• Accumulation and compounding annual deposits under death benefits on the premium paid till date at a guaranteed rate of 6% per annum.

ICICI Pru-easy retirement (best pension plan)

An individual can invest in the equity market to get a regular stream of income. In this case, the guarantee is given to the people by investing in a mix of debt fund and equity fund, thus helping the investor against any rapid changes in the market.

How to Evaluate Best Equity Mutual Funds

Benefits

• You can receive the benefits monthly, quarterly, half-yearly or annually.
• There is a minimum assurance of Rs. 48,000 premium with no maximum limit.
• The term of the policy is 10-30 years.

SBI Life Saral Pension plan (best pension plan)

Any gain earned by the way of surrender, complete withdrawal, maturity is available in the form of annuities to the extent of commutation of such benefits as allowed under the Income-tax Rules.

Benefits

• A guaranteed bonus is there for the first 5 years.
• The assurance of the minimum sum is Rs. 1 lakh with no maximum limit.
• Minimum and maximum maturity ages are 40 and 70 years respectively.

If you wish to apply for Large Cap mutual fund, Multi-Cap mutual fund, Small Cap Mutual Funds, and Short Term Mutual Funds give us a call on +91 9999379929. Our expert team will help you to solve all the doubt connected with mutual funds. Visit our page WealthBucket.
You can also mail us on contact@wealthbucket.in

Related articles

Types of mutual funds in India

Best SIP to Invest in Mutual Funds

SEBI: Functions, structure and regulation