8 Things To Consider Before Buying A Pension Plan

Outlook Money

Cash Flow

Select a pension plan based on your affordability and post-retirement expenses.


Choose a plan that offers flexibility in premium payments and withdrawals.

Annuity Rate

Different pension plans have different returns, so choose one as per your risk appetite.

Vesting Age

Pension plans typically offer pensions at 60, so select a policy that matches the vesting age.

Joint Annuity Plan

It offers pensions for the couple; even if you die, your spouse will continue to receive money.

Return Of Purchase Price

In this plan, the annuitant receives payments for life; after death, the purchase price is returned to the nominee.

Lower Returns

While investing in a plan, consider the prospect of higher inflation, as it can erode the returns.

Tax Liability

Under the new tax regime, there are no benefits under Section 80C.

Compiled By Avijit Gupta.