What Is A Pension Plan?
In a pension plan, the subscribers deposit a fixed sum regularly until the scheme matures to help them build a robust retirement corpus.
Why Is It Important?
It ensures financial security by providing income after retirement, so choose the plan that suits you best.
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Traditional Pension Plan
These plans invest in low-risk government securities, offering guaranteed steady income.
ULIP Pension Plan
Unit-Linked Insurance Plans (ULIPs) invest in equities and bonds, providing potentially higher returns with some market risks.
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Risk Factor
People who invest in ULIPs have a high risk tolerance as the return is usually not guaranteed.
Returns
Although returns are not guaranteed, pension ULIPs can potentially generate inflation-beating returns in the long term.
Annuity Pension Plan
These plans are of two types: differed and immediate. In the former, pensions come after retirement; in the latter, payments start immediately.
Life Insurance Add-Ons
Life insurance add-ons can be added to a pension plan, which ensures a lump sum amount to the dependents upon the subscriber's death.
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Should You Park Your Money In High-Interest 7% Return Savings Accounts?
Senior citizens typically keep a part of their money in savings account for emergency needs and regular cash flow. With many banks offering a high rate of interest on savings account, does it make sense to park your money in a savings bank?
Are You An NPS Subscriber Aged 60 Or Older? Know The Full Withdrawal Process
If you are 60 years or older and have an account under the National Pension System (NPS), you can withdraw the accumulated funds in a lump sum or annuity.
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While UPI and debit card users can make a payment to the extent funds are available in their bank accounts, credit card users must repay the utilised amount within the due date to avoid interest and penalty.
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