• At a younger age, many of us do not prioritize retirement planning as a financial concern. However, as you near retirement age, you may realize that you need to quickly save enough money for it. It is advisable to create an effective financial strategy today by identifying the kind of pension plan that is appropriate for you.

Types of Pension Plans
Grasping the various types of pension plans available in the market is a vital step when you start preparing for retirement. It provides insight into how a specific pension scheme can offer you particular advantages. It also equips you with the essential resources to picture life following retirement.

• Your financial needs are likely to change in the future for a variety of reasons. Mainly, losing a source of income is the most troubling aspect of retirement for many individuals. Selecting the right kind of pension plan can significantly alleviate your concerns.

Here are some of the prevalent types of pension plans in India:

1. Deferred Annuity
   The deferred annuity pension plan allows policyholders to receive annuities at a later date through one-time or recurring premium payments. Throughout the life of the policy, they can accumulate a considerable amount of money to be received as retirement income. You can also benefit from tax advantages with this type of pension plan.

Also Read: What is Annuity?

2. Immediate Annuity
   In the immediate annuity pension plan, you pay a lump sum amount and begin receiving annuities immediately. It is your choice to select from various annuity options and the amount to invest. In the event of an unforeseen circumstance, the nominee is entitled to the benefits.
3. Annuity Certain/Guaranteed Period Annuity
   With this kind of pension plan, the policyholder is granted annuities for a defined number of years. They can determine the payment duration at their discretion. The nominee of this pension type receives payments if the insured passes away.
4. National Pension Scheme (NPS)
   The Government of India offers various pension plans for retirees. It also gives central and state government employees, except armed forces members, a chance to save for retirement. With this pension plan, employees can regularly invest in their pension account, which will yield payments after retirement.

Know More: National Pension Scheme

5. Pension Plans with Life Cover
   These pension plans provide both life coverage and an investment element. This means that family members will receive a lump-sum payment upon the policyholder’s death.

• However, it is important to keep in mind that the insurance benefit amount may not be large with this pension plan.
• Pension Plans from Axis Max Life Insurance
• Axis Max Life Insurance strives to offer retirement plans tailored to individuals with different financial needs. You can choose the type of pension plan that maximizes the benefits and guarantees a comfortable lifestyle after retirement.
• Let’s talk about the various kinds of pension plans we provide.

1. Axis Max Life Guaranteed Lifetime Income Plan

• When your employment ends, a guaranteed source of income can be crucial. Axis Max Life Guaranteed Lifetime Income Plan will guarantee that you can independently fulfill your financial requirements throughout your lifetime. This category of pension plan offers the flexibility to select annuity and pay-out alternatives.

• There are several immediate and deferred annuity choices for the policyholder to tailor their retirement income. You can select to receive the pay-out annually, semi-annually, quarterly, or monthly.

2. Axis Max Life Perfect Partner Super
   Axis Max Life Perfect Partner Super is specifically crafted to offer your spouse financial security against unexpected incidents after retirement. You can also choose to add a waiver of premium rider to this pension plan, relieving the ongoing responsibility of paying premiums in the event of an unforeseen situation.

• Additionally, bonus additions are accessible with this pension plan. You can receive the accumulated paid-up additions and terminal bonus, if applicable, at the conclusion of the policy term.
• How to Purchase Pension Plans in India?
• The investments you make today to prepare for retirement are what will support you in the future. According to a study[1] aimed at understanding individuals’ retirement requirements, 58 percent of people regret not having started their retirement savings earlier.

• The constantly rising living expenses highlight the necessity to plan for retirement ahead of time. As you begin strategizing for your retirement, it’s essential to be informed about the various types of pension plans in India to make a knowledgeable choice.

Here are some vital points to remember when searching for the appropriate type of pension scheme:

1. Evaluate Expenses
   All diligent individuals must manage their expenses prudently to meet multiple life responsibilities. It can be difficult to envision what your financial situation will look like after retirement. Therefore, find the suitable pension plan by outlining the timeline of major life expenses.

• Take the time to identify the potential shifts in your obligations over the coming years. This will aid in evaluating the needs of your financial dependents in relation to your personal ambitions for life post-retirement.

2. Assess Financial Situation
   The pension plan that will serve you best is significantly influenced by your current and anticipated financial circumstances. If you have existing debts or substantial future expenses, consider whether these will persist after retirement as well.
3. Compare Policies
   A crucial step in determining the right pension plan involves comparing various policies. A thorough comparison will provide you with a clearer view of your needs and how they can be met effectively. Reviewing the different pension plan features may reveal a necessity that you had not previously considered.