By | 08/12/2016


After working hard for more than 15 or 20 years, people enter old age. At this juncture the concept of retirement comes to the fore. It is not a new phenomenon, where in the person; gets to relax after long duration of work.  Need for the retirement plans cannot be underestimated at this moment.

Significance of Retirement Plans:

Retirement is the next step for a person, after active work life. One has to go through this phase as well and you can lead your life with dignity, thanks to the availability of the retirement plans. The process of retirement will coincide with the employee ability to take up the retirement facilities like the company pension, and host of other concessions.


In India the retirement age has increased from 55 to 60 years for all professionals. However for the government doctors, the retirement plans has increased to 65. Some of the types of the retirement plans are given below as follows:

Deferred Annuity Plans:  A kind of retirement plan allows the person to build a retirement base for the final chapter in your illustrious life. One can pay premiums for limited period and enjoy absolute tax benefits.

Immediate Annuity Plans:  Immediate annuity plan is the one ideal for those individuals, starting their retirement planning after some time. You will pay the huge amount and annuities will start immediately. After the death of the policyholder, the nominee, mentioned in the plan will receive the money on behalf of the policyholder.

Retirement Plan With Cover and Without Cover:

There are two kinds of retirement plans namely with cover and without cover. In Retirement Plan with Cover, during the death of the policyholder, a huge sum is given to the family members.  In the Retirement Plan without Cover, means there is no life coverage. During the death of the policyholder, the nominee gets benefits till the date of death of the policyholder.

Life Annuity Retirement Plans:  During this plan, the pension amount will be paid to the policy holder for certain years. After death of the policyholder, the benefit will go to the nominee, mentioned in the form.

Guaranteed Period Of Annuity:  As per the guaranteed period, the pension is given        for policyholders taking policy for 5, 10, 15, 20 and 25 years. It depends whether, the policyholder survives that period.

National Pension Scheme:  Various retirement plans has been introduced by the government for the people. One can put the savings on a monthly quarterly or yearly basis and after some years one can withdraw approx 70% of the amount. Remaining 30% of the amount must be used in order to purchase and the maturity amount will be taxed.

Salient Features of Retirement Plans:

Some of the retirement plans available in India will come with some interesting features given below:

Enhanced Investment:  Good retirement planning will lead to increase investment and approx 12% of the salary will flow into your account.

Regular Income:  A fantastic retirement scheme will play a vital role in enhancing your income. Furthermore, you will earn regular income after retirement. Opting for more than a plan will be your key to have more income in the future.

Tax Advantages:  Tax benefits are an integral and minute part of the retirement. One must do proper ground work and research regarding the plan/policies and do effective retirement calculations in a logical fashion.  

Need of a good retirement plan is undeniable. If you want to have a sweet life after active work, plan now or repent later.

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