How the changes are occurring in Indian pension environment!

The pension environment in India has been the major growth booster through which several companies have been cashing on to. There are best pension plans in India which you can find for yourself to have better and promising returns. When it comes to the retirement plans there are indeed several options that you can pick from.

In this guide we aim to tell you that what the best pension plans in India are how can you invest there. So just have the look that we have to tell you!

Classifying the pension plans in India

The following retirement plans in India are there to make you chose the right one for you so have a look:

• ULIP retirement plans: These plans offer you to invest and earn the returns so that you can readily put to use the money that you have invested and also earn well. But there are some points of concern which includes the things like the liquidity and the cost that is associated with the plan. Unit-linked plans also ensure that you have the best vehicle to invest in the money and get the best possible returns in an easy way.
• NPS: National Pension scheme also ensures that you have got the best plan to invest the money in a more solid way. These schemes are proofed by government which makes you have the support and security as well. There are many advantages that you can have while subscribing to the scheme which includes locking up your retirement amount for which you will have to wait till you are relieved of your services. Out of all the retirement plans you may find this to be more suitable for you needs as you can also invest in the equity but there is a cap to it which is up to 50%.
• Traditional plans for retirement: These are the safest ways to invest in the plans which can safeguard your future after you are relieved of your regular source of income. There is Life Insurance Company which has been providing promising services to the people on a very large scale. There are policies which are demarcated into deferred annuity and that of immediate annuity and the company has got policies in both the sections.
• Retire plans of mutual funds: This category solely gets to be managed by the mutual funds that are the safe vehicle for investment. There are many schemes which are being stated on the basis on many factors such as – taxation, cost, fund performance and liquidity.

Apart from that the retirement plans are divided as the following:

• Accumulation phase: This is the thriving phase in which you can accumulate and invest in the plans that you have chosen to get financed when you have retired. So this phase is indeed the booster for your financial stability that you can have after your retirement.
• Distribution phase: In this phase you begin to withdraw the money from your fund till your last breath.
• Deferred annuity phase: This plan makes you pay from the current time and then onwards you will withdraw from a specified age. This mode makes it a most preferred way to invest and withdraw so that you have a stable vehicle of investment. For this mode of pension plan payment to begin you have to reach your retirement.
• Immediate annuity plans: This is a bit flexible because you have to invest and you get to have the returns on an immediate basis. There is also a vesting date for the pension plan in which you can start to receive your investment on a more immediate basis.