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These 5 Tips Will Help You Find a Suitable Pension Scheme in India

Suitable Pension Scheme in India

Everyone has to undergo retirement at some point. After years of selfless service to your employer, there will be a time when you want to relinquish your professional duties and focus on your family. It is at this time that you would need a pension plan to help support you even in the absence of a monthly income. The most important thing to keep in mind when looking for a pension scheme in India is affordability and suitability. At the end of the day, your retirement plan should be able to keep you financially stable. In some cases, you may be ready to retire financially but mentally unprepared to retire or vice versa. 

If you do not make a decision about your retirement at the right time, you may find yourself in a dire situation where you would have to rely on your children for financial support. To avoid this situation, it is imperative that you start browsing pension scheme in India and choose the one that enables you and your partner to live with dignity. 

Despite the importance of retirement planning and wide availability of pension plans, there are many people who don’t know what is pension or how to choose the best pension scheme in India. If you are also in the same situation, then you have come to the right place. 

Firstly, you need to understand that the key to retiring successfully is to build a corpus of funds as well as generate a monthly income through pension. It is one of the most critical financial decisions working professional takes. If you want to ensure that you have enough funds and don’t want to outlive your savings, then you start investing in a pension plan at an early age. 

But how does one choose the best pension scheme in India? Don’t worry. This article will tell you what to look for!

Inflation-adjusted return on investment

One of the most important features to look for in your pension fund is inflation adjusted returns. What it really means is that the retirement plan you choose will provide you returns that remain unaffected by the existing inflation after your retirement. Simply put, the value of your investment must correspond to the rising cost of living to help you maintain the same standard of living. 

Financial protection for your partner

Every working professional dreams of a financially independent life where they are able to do all the things they had to put off due to early age responsibilities. You want to share all these moments of joy with your partner and loved ones. But what if something were to happen to you? Who will take care of your spouse’s living expenses? To protect them against such eventualities, you need to look for a pension scheme in India that guarantees income to your spouse, in case something happens to you. This is an important check to protect your partner’s finances. Therefore, you need to choose a plan that caters to both of you. A good pension plan will continue to provide financial benefit. 

Flexibility

It is recommended to start investing in your retirement as soon as you receive your first salary. Therefore, when you choose a pension scheme in India, you should look for a plan that gives you flexibility to pay a higher premium with time as your income grows. There are many plans out there that allow you to expand your premium contribution through top-ups. Even a small bump every year can enhance your corpus of funds over a period of time. 

Benefits

It is also important to assess what the plan offers you in terms of bonus and benefits. For instance, there are certain plans that give loyalty bonus to their investors over a period of time. This helps you create more wealth and enhance the value of your retirement fund. 

Guaranteed income

It doesn’t matter how much you save over the years, there will always be a risk that you may run out of your savings eventually. Therefore, it is necessary that your plan guarantees you income after your retirement. Make sure that the pension plan you choose has the option of a steady, guaranteed income. 

Also check about – What to Look for in a Senior Living Facility

These are just some of the things you need to keep in mind when you are looking at a pension scheme in India. Also educate yourself about common terms, such as vesting age, sum assured, annuity, surrender charges, etc. This knowledge will help you understand what your plan offers and what it entails. 

Just read these basic tips before making a purchase decision. It will help you make an informed choice when you are looking at pension plans.

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