Wealth management through savings and investments is crucial for long-term financial independence and social security. Retirement plans are investment strategies that set aside a portion of a person’s income for use after retirement. Following a period of employment, life insurance companies offer retirement plans as retirement funds.
Retirement planning should not be considered an afterthought. Pension plans require timely attention. Pension decisions should be based on solid data and research. Hence, here is a list of pension schemes in India to know the best schemes to channel your investment.
Unit Linked Insurance Plans (ULIP):
ULIP is a popular pension scheme in India due to its investment transparency. It also offers a double benefit of insurance and investment to investors. Unit-linked insurance plans involve insurance and investment.
ULIP provides a death benefit, the amount that will be paid to the applicant if the policyholder dies under unfortunate circumstances while ULIP is still in effect. Additionally, investments in unit-linked insurance plans are tax deductible.
Indira Gandhi National Old Age Pension Scheme (IGNOAPS):
Among the best pension schemes in India, this scheme mainly focuses on providing social security to the elderly through assured income. It pays pensions to disabled people, widows and the elderly.
Applicants must belong to low-income or BPL groups. They must be 60 or older. This program is a non-contributory government pension plan and the beneficiary is not required to make any payments to earn a pension.
Atal Pension Yojana (APY):
This scheme in India is open and suitable for workers belonging to the low income class. APY aims to offer lower working class citizens a chance to plan for life after retirement. The contributor must pay monthly contributions for at least 20 years. The central government co-contributes 50% of each contribution paid into the pension fund or Rs. 1,000 per year, for at least five years.
National Pension Scheme (NPS):
NPS is among the best pension schemes in India. The Indian Pension Funds Regulatory and Development Authority monitors the transparency of investment standards. It offers an interest rate of 9% to 12% to the investor. The NPS allows the investor to make emergency withdrawals, up to 25% of the total amount of savings made, up to 3 times in five years.
Varishtha Pension Bima Yojana (VPBY):
VPBY offers both a guaranteed rate of return and income security. It offers immediate annuity plans that provide a regular annuity to the beneficiary. Among the many advantages of this plan is the fact that there is no maximum age limit.
Under this plan, the beneficiary has the option of choosing a monthly, quarterly, half-yearly or annual pension. It offers a guaranteed annuity over a period of 10 years with an annual rate of return of 8%. Tax is exempt from premiums paid for this policy. In the event of the death of the beneficiary, the amount is transferred to the agent.
What is PPF?
The Public Provident Fund (PPF) is a savings and investment scheme among some of the best preferred retirement schemes in India. It was started in 1968 by the National Savings Institute of the Ministry of Finance with the aim of generating long-term financial stability and wealth for investors. It has a duration of 15 years, which can also be extended.
It is strongly recommended that you use a PPF interest calculator to calculate the amount you will accrue. This is a viable option for calculating the tax savings and maturity value of your investment.
The PPF Interest Calculator is a user-friendly tool designed to easily and efficiently calculate interest yields. It works on the mathematical formula mentioned above. Follow the steps mentioned below to use an online PPF interest calculator-
Step 1: Search Google for a PPF interest calculator and visit a website of your choice.
2nd step: Enter the preferred annual investment amount and set the term if desired.
Step 3: The value at maturity of your initial investment will be displayed on your screen.
Choose wisely and strategically from the best pension schemes in India. Manage your assets as you would manage your health.