It is really hard to survive for women when they retire from their official innings of work. Life gets easy when they are enrolled into the best Pension plans scheme. Pensions provide a sense of financial security for their last stage of independent life. There are various yet impressive schemes offered which the women kind must get a hold of.
Types of Pension Plans available
Deferred Annuity Plan –In this plan, the pension amount would be deferred for a particular time period and this period is known as “accumulation phase”. When the Policyholder retires, the accumulation phase is over and he starts getting pension income. .
Immediate Annuity Plan –In this plan, fixed amount is invested throughout the period of the plan. Once the policyholder retires, he gets the lump sum amount of corpus in return. Following are the three categories of Immediate Annuity plan: Annuity Certain - The pension company would give fixed amount of money every month for a particular time period to the Policy holder.
Life Annuity Plans: Under this plan, a fixed amount of income is paid to you every month till the time you live. After your death, the initially invested amount is refunded to your nominee.
Guaranteed Period Annuity – This plan is very comfortable for the policy holders, as this plan not only benefits them but also their nominees. In case the policy holder dies before the specified time period, the pension amount will still be paid to their nominees till the time period gets over. If the policy holder survives through the time period, then pension amount will be given to them till the end of their lifetime.
Other Financial Planning Options available in India for Retirement Planning:
Employee provident fund
Employee pension plans
Public provident funds
Senior citizen savings schemes pension plans
Stocks and bonds
Advantages of Different Pension Schemes
Certain retirement benefits guarantee a certain amount of accumulated fund or corpus fund to be paid when they retire from the service. A percentage of interest is calculated for the entire years of service contributed by the person and that amount is summed up and given after the retirement from the employment. The percentage of interest is prone to variation from company to company.
In retirement plans like the unfunded defined pension, the employers and the official pension sponsors pay the pensions. This entire set up is carried out by the state government. It is also called as Pay as you go plan where the citizens are paid their pensions from the current tax amount paid by the population to the government.
There are also pension schemes for women who have lost their husbands provided their husbands be in any one of the pension scheme. Though the same pension amount drawn by their husband won’t be given but a decent amount to survive smoothly will be given to them.
Important things to remember
Pension plans are very vital for anyone after their retirement age as it gives the will to stay independent forever and hence an appropriate pension plan must be chosen by the individuals when they are in service.
Different firms including private and public banks offer pension schemes for various purposes like health, wealth, travel etc. The individuals can select the pension schemes according to their life styles.
Pension schemes are mainly offered as people lose the potential and calibre to work and obtain salary on a regular basis. To avoid the stress of financial crisis post retirement, one is given a pension. Hence the pension plan must be made maximum use of in an efficient way for which one needs to plan since the day one of joining a company. When this is done, a happy life can be ensured throughout any financial hindrances.