Which is the best Pension Plan?

Unit linked pension plans combine investment with life cover and pension. We at Consumer VOICE compare pension plans on the basis of maximum and minimum vesting age, maximum and minimum policy term, minimum premium, maximum and minimum entry age, charges for premium allocation etc. to help you find the best pension plans available.

Brands Compared : Aditya Birla Sun Life, Bajaj Allianz Life, Canara HSBC OBC, Edelweiss Tokio, HDFC Life, ICICI Prudential, IDBI Federal, SBI Life, Max Life, and Reliance Life.

Why should you invest in retirement pension plans?

  • Rise in life expectancy

With improved healthcare and availability of/accessibility to super-specialty hospitals, life expectancy has improved significantly, from 67.29 per cent (2012) to 69.09 per cent (2018). More people now expect financial support after their retirement. These plans offer excellent financial support for aged persons, especially those from unorganized sectors.

  • Lack of adequate social security system in India

There is at present no social security in place for people in India who have no means of receiving any income after their working years are over. There is an absolute need for such pension plans in India.

  • Rising health expenses

Pension plans provide additional financial support when medical expenses run high. This is especially true of plans that provide for maturity amount in lump sum or that provide for partial withdrawals. Before you choose a policy, make sure you go over the details of the policy so you know exactly what you will be getting from it.

  • Ensures regular flow of income

These plans offer regular pension income that can be in addition to any other pension fund one may be receiving as an employee of an organization.

  • Benefits under Income Tax Act

Under sections 80 (C), 10 (10A) and 10 (10D) of the Income Tax Act, there are exemptions on premium paid, commuted pension received and maturity lump-sum amounts received.

We have also compiled a Buying Guide: How to choose best retirement plans 

Brands Compared

 

  • Aditya Birla Sun Life
  • Bajaj Allianz Life
  • Canara HSBC OBC
  • Edelweiss Tokio
  • HDFC Life
  • ICICI Prudential
  • IDBI Federal
  • SBI Life, Max Life
  • Reliance Life

Parameters Compared

 

  • Retirement Pension Plans (Unit-Linked)
  • Entry age – minimum (in years)
  • Entry age – maximum (in years)
  • Minimum premium (yearly, in Rs)
  • Minimum policy term (in years)
  • Maximum policy term (in years)
  • Minimum vesting (maturity) age for payment (in years)
  • Maximum vesting (maturity) age for payment (in years)
  • Premium allocation charge – maximum (on 1st premium, yearly, in %)
  • Policy administration charge (monthly, in %) – maximum
  • Fund management charge – maximum (yearly, in %)
  • Investment guarantee charge – maximum (yearly, in %)
  • Mortality charge
  • Investment fund options
  • Guaranteed/Loyalty addition benefit
  • Maturity/Annuity benefit
  • Partial withdrawal facility
  • Customer Feedback

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