How to Remain Financially Independent after Retirement

financially independent after retirement

Become Financially Independent after Retirement

You may be a young professional with a fixed salary high enough to fulfill all your dreams. You do not give a second thought before spending a bomb over buying that expensive car of your dream or before booking an expensive honeymoon package to a foreign country. But now it is time to face the reality of life. Life will not be a bed of roses forever. Now you are young, but with the passage of time, when your retirement age approaches, you will start realizing the importance of financial planning more and more. So, if you have not done it while you are still young, you may get into a great financial trouble after retirement. That is why retirement planning is a must for everyone.

Everybody wants a financially independent life post retirement.There is no better way to a successful retirement planning than investing in a pension plan from a reputed Insurance Company. There are different types of pension plans available in the market:

  1. Immediate Annuity
  2. Deferred Annuity
  3. Annuity Certain
  4. Life Annuity
  5. Guaranteed Period Annuity
  6. With cover Pension plans
  7. Without Cover Pension plans
  8. Pension Funds
  9. National Pension scheme

There are numerous Insurance Companies that offer pension plans to help you with your retirement planning. These plans provide various combinations of premiums and returns that you can choose from, depending on your investment capability.  Some of the plans are discussed as follows:

  1. Bajaj Allianz pension guarantee

This is a non-linked Non-participating Immediate Annuity plan. This pension plan guarantees a regular income after your retirement. You can choose from different annuity options as per your needs. Minimum entry age for this plan is 37 years while the maximum age is 80 years. Minimum premium (purchase price) is Rs. 25,000/- The minimum annuity instalment is Rs. 1000/- In case of your death your nominee receives the sum assured as the death benefit.

  1. Max Life Forever Young pension plan

If you have a high risk appetite this pension plan is for you.  It is a unit-linked plan that offers both vesting benefit and death benefit. Loyalty additions and surrender benefits are also available with this plan. There are 2 premium payment options- regular and single. Based on your financial circumstance you can change your premium paying term anytime you want. The entry age for this plan is 30 years (minimum) to 65 years (maximum). You can add riders to enhance your protection.

  1. HDFC Life Personal Pension Plus

This is a non-linked participating traditional pension plan offered by HDFC Life. This plan offers different annuity options to choose from. It is always best to start your retirement planning from an early stage of your life. That is why the entry age for this plan is 16-65 years. Vesting or maturity age is 55-75 years.  In case of your untimely death, your nominee will receive the death benefit which is 105% of the premiums paid. The vesting age of this plan is 55-75 years.

  1. LIC Jeevan Akshay VI

This pension plan offered by LIC is a highly customization immediate annuity plan. You can choose from different annuity options. You pay only once and start receiving annuity right after your retirement. The annuity is paid out in monthly/ quarterly/ yearly/ half-yearly basis.The minimum entry age is 30 years-85 year.

  1. ICICI PRU Immediate Annuity Plan

ICICI Prudential Life Insurance offers this pension plan that offers guaranteed income after your retirement. It offers different annuity options as well as different payout options to meet various customer needs.  It is never too late to start retirement planning. This plan allows you to start anytime in your life as the minimum entry age for this plan is 45 years – 100 years.

Everybody should start their retirement planning from an early age. Generally, most of the plans have an entry age of around 30 years and above (except for a few plans). This is the time of your life when you are well established in your career and you can afford a decent premium. You need to strike the right balance between the returns you want versus the premium you pay. Hence, do your research and choose wisely from the various available options.

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About Aditi Singh 356 Articles
Aditi Singh is an independent content creator and money finance advisor for 5 years. She is recently added with Investment Pedia. Internet users are always welcome to put comments on her contributions.

1 Comment

  1. Hi Aditi ,

    Nice article! A lot of retirees or people undergoing retirement planning know ‘Why’ and ‘How’, but seldom get to know ‘HOW’; the most important part of the plan. Your article helps with the avenues where to invest. Keep writing and sharing.. All the best!!

    Thanks and Regards!

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