Retirement is a major turning point in one’s life and it is always advisable to do some retirement planning ahead of time. Therefore, you should invest in a retirement plan well in advance to prepares you for all forthcoming responsibilities. Always plan considering your current standard of living, your assets and liabilities and the impact of inflation on them. You can check how much you would require by the time you retire with the help of our Retirement Calculator. Choose the most suitable plan for yourself that allows you to fulfil all your responsibilities and duties with ease.
Plan now to enjoy a relaxed life later.
What are Retirement plans?
Retirement plans , also known as pension plans , allow the policyholder to allocate a part of his/her savings to accumulate over a specific period. Once the policyholder retires, these plans help him/her in having a steady flow of income.
In India, retirement planning is gaining a lot of importance, ever since people have realized the significance of being financially independent.
Highlights of Retirement plans
Benefits of Retirement plans
Investing in pension plans or retirement plans can help you in the following ways.
Important features of Retirement plans
While some features may vary from one retirement plan to another, all the best pension plans have certain common characteristics.
Depending on the kind of pension plan, you can receive a fixed income each month either after you retire or right away. This guaranteed income is essentially the pension.
This is the phase between the date you purchase the plan till the date it matures. Over this period, you continue to pay premiums if you’ve opted for period premium payments. The premiums invested build up to form a sizeable corpus, which is where your retirement benefits come from.
Vesting age is the age when you start to receive the guaranteed monthly pension. Depending on the plan you choose, the vesting age can be as low as 40 or even as high as 90.
Payment period is the duration over which the guaranteed monthly pension is paid out to the investor. In most cases, the payment period begins after the accumulation phase. However, some plans may allow for partial withdrawals even during that phase.
If you decide to stop investing in your retirement plan, you are required to surrender the policy to the insurer. If the terms of the policy permit, you might receive a set percentage of the premiums paid by you as the surrender value.
This is a feature that allows the investor to make partial withdrawals from their retirement corpus even before the accumulation phase is complete.
Types of Retirement plans
There are different types of retirement plans available in the financial market. What you choose ultimately depends on the kind of financial support you seek post-retirement. Some of the most commonly chosen types of retirement plans are listed here.
How to choose the perfect retirement plan?
To choose the perfect retirement plan for yourself and your spouse, here are some factors to consider.
Once you’ve identified these factors, compare the various retirement plans offered by financial institutions and pick the one that best aligns with your future goals.
Things to keep in mind before choosing your retirement policy
Calculating the premium for retirement plans
The premium charged for retirement plans is calculated after factoring in various elements, such as your age when you begin investing, the age at which you plan to retire, your current monthly expenses, the potential inflation rate, and the savings or investments you already possess. By taking these factors into consideration, a retirement calculator arrives at the amount of monthly investments needed to achieve your retirement goals. This is, essentially, the premium you need to pay monthly.
Why should you opt for Retirement plans?
Documents needed to buy Retirement plans
You might need the following documents to invest in retirement plans in India.
Why PNB MetLife’s Retirement plans?
PNB MetLife’s central focus is to provide customers with a wide array of plans, so they can find the perfect solution for the future. With a plethora of choices like the MetLife Retirement Savings Plan, MetLife Smart Platinum, and MetLife Immediate Annuity Plan, among others, you can pick the one that best aligns with your post-retirement goals.
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The eligibility criteria for pension plans vary from one scheme to another. In general, however, these are some commonly required eligibility conditions that need to be satisfied.
When you surrender your pension plan before maturity, the financial institution pays you a surrender value, which is generally a predetermined percentage of the premiums paid by you. This surrender value thus received is treated as income in your hands, and therefore, it’s taxable at the applicable slab rate. Additionally, you become ineligible for all the benefits originally stated in the plan.