Investment Plans 116 views August 14, 2021

A Pension Plan Calculator is an online tool that helps you figure out how much money you’ll need to invest for your retirement and how much you’ll get in return to live such days. The calculator requires details like the age of the insured, the expected retirement age, current income, savings and investments. Based on these details, the calculator shows your investment amount. Read this page to know about the benefits of the pension plan calculator.

How to Use the Pension Plan Calculator?

You can use this calculator to calculate the retirement corpus and to do so, you need to insert the following details:

  • Current age
  • Retirement age
  • Current income
  • Savings

Based on the above-mentioned details, the calculator will generate your pension amount and the amount that you need to invest.

Benefits of Using the Pension Plan Calculator

The following are the benefits of using the pension plan calculator-

Financial Planning: The calculator lets you know how much you need to save for your retirement. It shows whether your current plans are working or not.

Financial Clarity: If you have a retirement plan, with the help of this calculator, you can know your gain at the time of retirement.

Compare Plans: Use the calculator to know which plan provides the best retirement corpus to you as per your financial needs

Easy to Use: You can easily use this calculator by inserting the required details, and it will show you how much you need to save for your retirement

It’s Time to Glance at the Best Pension Plans in India

The following are some of the best pension plans for you in India. Compare the plans offered using the pension plan calculator and see which is best for you.

HDFC Life Assured Pension Plan

With the HDFC Life Assured Pension Plan, you can secure your retirement years with an assured vesting benefit. The entry age is as low as 18 years under this plan and the minimum age for vesting/maturity is 45 years, so you don’t have to wait much longer to receive the policy benefits. And in case of your death, the insurer will pay the policy fund value or 105% of total premiums (whichever is higher) to the nominee.

Note: The annuity under the HDFC Life Assured Pension Plan is based upon the ups and downs of the market. Also, loyalty additions in the form of Pension Multipliers will be added to your fund value from the 11th year.

Bajaj Allianz Life Guaranteed Pension Goal

Bajaj Allianz Guaranteed Pension Goal provides regular income to you throughout your life as per your choice. And the plan also has an option wherein you can receive your invested amount back as Return of Purchase Price. You can also include your spouse in this annuity plan. If you add your spouse, in the event of your death, the spouse will receive 50% or 100% of the annuity.

Note: The purchase price is a single premium or the sum of all regular/limited premiums + top-up premiums (if any).

Aditya Birla Sun life Empower Pension Plan

Aditya Birla Sun life Empower Pension Plan offers assured vesting benefit wherein you will receive the higher of –

Guaranteed Vesting Benefit (which is net of partial withdrawals since the policy inception)
Policy Fund Value

The Guaranteed Vesting Benefit varies based on the vesting date and risk profile. And once it is assigned at inception, it will remain the same.
There is also a self-managed option wherein you can receive the Policy Fund Value on the vesting date. In case of your death, the company will pay a Guaranteed Death Benefit or the Policy Fund Value to the nominee (whichever is higher)

Note: You have the option to surrender this plan, provided your policy is in force.

ICICI Pru Easy Retirement Plan

ICICI Pru Easy Retirement Plan is a unit-linked pension plan that offers annuity payout based on market downturns. The following are the options available under this plan –

  • Life Annuity
  • Life Annuity with Return of Purchase Price
  • Life Annuity guaranteed for 5, 10 or 15 years & life thereafter
  • Joint Life, Last Survivor without Return of Purchase Price
  • Joint Life, Last Survivor with Return of Purchase Price
  • Life Annuity with Return of 50% Purchase Price
  • Life Annuity with Return of 75% Purchase Price
  • Life Annuity with Return of Balance Purchase Price
  • Life Annuity with an annual increase of 5%
  • Joint Life, Last Survivor with Return of Purchase Price in Parts
  • Life Annuity with Return of Purchase Price on Critical Illness, Permanent Disability due to Accident or Death

There’s also a Pension Booster benefit which will enhance your annuity payout.

Exide Life Golden Years Retirement Plan

Exide Life Golden Years Retirement Plan is a traditional pension policy that provides retirement corpus without compromising on your income. In case of death during the policy term, the insurer pays the highest of the following to the nominee:

  • 105% of the paid premiums + top-up premiums (if any)
  • Gross premiums + top-up premiums (if any) compounded at 1% p.a. till the date of intimation of death
  • Balance in the Individual Pension Account (IPA) + prorated interest from the last policy year

The nominee can receive the death benefit in any of the following ways:

  • Use the guaranteed death benefit or any part of it to purchase an annuity at the prevailing rates
  • Withdraw the entire guaranteed death benefit in a lump sum
    Whereas, on vesting, the insurer pays higher of the following to the insured:
    Gross premiums + top-up premiums compounded at 1% p.a.
    Balance in the IPA

You can receive the vesting benefit in any of the following ways:

A portion of the vesting benefit is paid to you as a tax-free commuted value under section 10(10A) of the Income Tax Act, 1961. Currently, that payout amounts to 1/3rd of the vesting benefit. While the remaining or full amount can be used to purchase a life annuity from Exide Life’
Or
You can use the entire proceeds of the vesting benefit to buy a single premium deferred pension plan from Exide Life

Note: If the total payable premium excluding top-up premiums (if any) is >= INR 4,80,000, you will receive a Loyalty Benefit on vesting. The loyalty benefit is equal to 100% of the allocation charges collected on the premium, excluding top-up premiums (if any). Such loyalty additions shall be credited in the IPA on vesting, provided all due premiums are paid.

People Also Read