8 Things To Know About Pension Plans

Outlook Money

What Is A Pension Plan?

In a pension plan, the subscribers deposit a fixed sum regularly until the scheme matures to help them build a robust retirement corpus.


Why Is It Important?

It ensures financial security by providing income after retirement, so choose the plan that suits you best.


Traditional Pension Plan

These plans invest in low-risk government securities, offering guaranteed steady income.

Traditional plan

ULIP Pension Plan

Unit-Linked Insurance Plans (ULIPs) invest in equities and bonds, providing potentially higher returns with some market risks.

Unit linked plan

Risk Factor

People who invest in ULIPs have a high risk tolerance as the return is usually not guaranteed.

choose according to risk tolerance


Although returns are not guaranteed, pension ULIPs can potentially generate inflation-beating returns in the long term.

Annuity Pension Plan

These plans are of two types: differed and immediate. In the former, pensions come after retirement; in the latter, payments start immediately.


Life Insurance Add-Ons 

Life insurance add-ons can be added to a pension plan, which ensures a lump sum amount to the dependents upon the subscriber's death.


8 Things To Know About Public Provident Fund

Public Provident Fund