Here’s How the Best Retirement Plan in India Can Ensure a Stress Free Retirement Life

Here's How the Best Retirement Plan in India Can Ensure a Stress Free Retirement Life

Pension or retirement plans are a means of steady income once your employment years are over. They ensure the continuity of one’s lifestyle despite the end of income. Retirement planning paves a way for maintaining your way of living and fulfilling your dreams – be it a dream vacation with your partner or a successful future for your family.

Retirement planning shouldn’t be wavered off as a later concern. It requires timely intervention and attention. Decisions regarding it should be based on data and extensive research. In addition to this, investing in the best retirement plan in India should be your go-to approach to generate wealth.

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Why Plan for Retirement?

You might have a view of what you want your retirement life should look like. Maybe you would want to relocate to your dream city, or you might want your children settled in their life. How you picture your retirement is personal and subjective. And to fulfil these dreams, you must have a vision set in your mind. The best retirement plan in India can make your vision turn into reality.

Let’s see some of the best retirement plans in India for you to invest in.  

Unit Linked Insurance Plans (ULIP):

ULIP is among the best retirement plans in India because of its transparency in investment. It also provides a dual benefit to the investors. These dual benefits include both insurance and investment.

Being an insurance instrument, it provides a death benefit, i.e., the sum that will be paid to the nominee if the policyholder dies given unfortunate circumstances while the ULIP is still in effect. Moreover, under Section 80C of the Income Tax Act, investments in unit-linked insurance plans are tax-deductible up to a limit of Rs. 1.5 lacs.

Indira Gandhi National Old Age Pension Scheme (IGNOAPS):

Among the few best retirement plans in India, this scheme focuses majorly on providing social security for senior citizens by providing them assured income. The IGNOAPS retirement plan is ideal for disabled people, widows, and senior citizens.

Here's How the Best Retirement Plan in India Can Ensure a Stress Free Retirement Life

For applicants to become eligible, they need to belong to low-income groups or BPL. In addition, they must be 60 years or older. This program is a non-contribution government pension plan, and the recipient is not required to make any payments to earn a pension.

Atal Pension Yojana (APY):

A retirement plan in India is open and suitable for workers belonging to the lower income class. APY strives to provide lower working-class citizens with an opportunity to plan their life after retirement. The contributor needs to make monthly contributions for a minimum of 20 years. The Central Government co-contributes 50% of each contribution made to the pension fund, or Rs. 1,000 annually, for a minimum of five years.

National Pension Scheme (NPS):

NPS is among the best retirement plans in India. The Pension Fund Regulatory and Development Authority of India monitors transparency in investment norms. NPS provides a 9%-12% interest rate to the investor. It permits the investor to make emergency withdrawals, up to 25% of the total amount of savings made, three times in five years.

Varishtha Pension Bima Yojana (VPBY):

VPBY provides both a guaranteed rate of return and income security. It offers Immediate Annuity Plans, which are annuity payouts, to the beneficiary. Among the several advantages of this plan is that it has no maximum age limit.

Under this plan, the beneficiary has the option to choose a monthly, quarterly, half-yearly, or annual pension. It provides a guaranteed pension based on 10 years with an annual rate of return of 8%. Tax is exempted from the premiums paid for this policy. In case of the demise of the beneficiary, the amount is transferred to the nominee.

Public Provident Fund

Public Provident Fund (PPF) is a savings-cum-investment scheme among some top preferred retirement plans in India. It was launched in 1968 by the Finance Ministry’s National Savings Institute with the vision to ensure long-term financial stability by generating wealth for investors. You can use a PPF interest calculator to know the interest you will be generating. It should be your go-to tool if you are considering investing in PPF.

What is a PPF Interest Calculator?

When it comes to calculating how much premiums one has to pay on an annual basis or returns it will generate, the PPF interest calculator comes in handy.

PPF interest calculators are a viable option for calculating tax savings and maturity value on one’s investment. It has a tenure of 15 years, which can also be extended.

How to Use a PPF Interest Calculator online?

PPF interest calculator is a user-friendly tool designed to easily and efficiently calculate interest returns. It works on the above-mentioned mathematical formula. Follow the steps mentioned below to use an online PPF interest calculator-

Step 1: Search for a PPF interest calculator and visit a website of your liking.

Step 2: Enter the preferred annual investment amount and set the tenure if desired.

Step 3: The maturity value of your initial investment will be displayed on your screen.

Now you just don’t have dream of a stress-free retirement life; you can live them by investing in the best retirement plan today!