Senior Citizens Pension Plans

Pension plans are investment plans which help to allocate the savings to accumulate into a corpus over a specified period of time and it also provides with a steady and regular source of income after your retirement. Pension Plans provides financial security to the senior citizens so that they do not have to compromise on their living standards. The senior citizens require a steady source of income after retirement. In that case, pension plans can help them to receive regular income from an Immediate Annuity Plan.

Immediate Annuity Plan

In the Immediate Annuity Plan, the pension starts immediately after you opt for a plan. You will have to deposit a lump-sum amount or a purchase price and the pension of the plan will start immediately on the basis of the amount invested by you. It offers to choose from a range of annuity options available to you. Also, the premium paid to you is exempted as per the Income Tax Act. In Immediate Annuity Plan, the nominee will be entitled to get the money as per the selected option in case of death of the insured.

Benefits of Immediate Annuity Plan

1. Immediate Annuity Plans provides you guaranteed lifelong incomes
2. It has different types of annuity incomes which enables you to cover your spouse as well
3. You can choose from different types of immediate annuity options according to your income needs.
4. Helps you to make proper use and proper management of the lump-sum amount in hand
5. It enables the senior citizens who have stopped earning to receive steady and regular income from the lump-sum cash in hand.

Types of Immediate Annuity Options

1. Constant Annuity for Lifetime
2. Annuity for life with return of purchase price
3. Joint Life option without return of purchase price
4. Increasing Annuity
5. Joint Life Option with the return of purchase price

Pension Plans for Senior Citizens

The following Immediate Annuity Plans are some of the good pension plans for senior citizens:

SBI Life Annuity Plus

SBI Life Annuity Plus has a single premium pay-out option and it offers a comprehensive annuity range. It assures a regular annuity for rest of your life. SBI Life Annuity Plus has following features:

1. These plans are flexible as it offers a comprehensive range of annuity options
2. These plans provide security of steady and regular retirement income
3. These plans are reliable as it offers fixed annuity throughout the life of the insured
4. These plans also offer a single life annuity, lifetime income with a capital refund, lifetime income with an increase of 3-5% annually.

ICICI Pru Immediate Annuity

ICICI Pru Immediate Annuity Plan provides you with the benefit to choose to make a one-time payment and also choose from the 5 different annuity payout options. This plan provides 4 mode of pay-outs which includes monthly, half-yearly, quarterly or yearly. ICICI Pru Immediate Annuity has the following features:

1. It provides different pay-out options to choose from which includes annuity for life, guaranteed annuity for 5/10/15 years, etc.
2. It provides you with four modes of pay-outs enabling you to choose as per your needs
3. It provides the benefit of regular and steady income after your retirement.

HDFC Life New Immediate Annuity Plan

HDFC Life New Immediate Annuity Plan is non-linked annuity plan which offers various annuity options and also provides an opportunity to live on your terms even after your retirement. HDFC Life New Immediate Annuity Plan has the following features:

1. It provides you with the benefit to choose the frequency of annuity which can be monthly, quarterly, half-yearly or annually.
2. These plans provide guaranteed income as long as you and your spouse lives
3. It also offers you to choose from a wide variety of annuity options.

Reliance Immediate Annuity Plan

Reliance Immediate Annuity Plan offers you a retirement plan which helps to build a corpus post-retirement to enable you to so live your life happily to the fullest. Reliance Immediate Annuity Plan has the following features:

1. These plans enable you to leave the accumulated corpus/funds for your dependents such as your parents, spouse and children.
2. These plans provide a regular and steady income for your entire lifetime.
3. These plans also have tax benefits.

Birla Sun Life Immediate Annuity Plan

Birla Sun Life Immediate Annuity Plan is a traditional and non-participating plan which requires a single premium payment option. It provides regular and steady income after your retirement. Birla Sun Life Immediate Annuity Plan has the following features:

1. It provides regular and guaranteed income at the time of your retirement
2. It provides tax benefit under a prescribed section of the Income Tax Act
3. It provides the flexibility to choose the frequency of pay-out option

Conclusion

Hence the senior citizens who want to receive guarantees regular income from the lump-sum amount they have in hand and want to invest it in a safe and guaranteed payment plan then immediate annuity pension plans are the best for them. Pension Plans for senior citizen helps to make a better and informed decision and plan their future after retirement.