1. What is a pension plan?
A pension plan offers dual benefit of corpus accumulation and life insurance cover. By investing in a retirement pension plan, the policyholder is entitled to receive monthly payouts in the form of pension after his/her premium payment term is over. Hence, a pension plan is a smart retirement planning tool that enables you to maintain your standard of living post retirement.
2. What are the types of pension plans in India?
The different types of pension plans are:
3.National Pension Scheme
6.Guaranteed Period Annuity Pension Plan
3. How to calculate retirement corpus in India?
There are several online retirement corpus calculators that help you calculate the retirement corpus. These retirement corpus calculators take into account your life expectancy, interest rate, inflation and your current expenses. Make sure to build a corpus large enough to take care of your post-retirement needs.
4. How to invest retirement corpus?
You can invest your retirement corpus in:
1.Senior Citizens’ Savings Scheme
2.Post-Office Monthly Income Scheme
4.Bank Fixed Deposits
You can also contact a financial advisor to know how to invest retirement corpus.
5. How does a pension plan work?
A typical pension plan, also known as retirement pension plan, has two phases - accumulation and annuity. During the accumulation phase of the pension plan you pay the premiums for the plan’s tenure. During the annuity phase, your investment fetches returns and you start getting pension.