Pension Plans - PowerPoint PPT Presentation

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Pension Plans

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Pension Plans are a category of life insurance plans that are specially designed to meet your post-retirement needs such as medical and living expenses. – PowerPoint PPT presentation

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Title: Pension Plans


1
Pension Plan
2
What is Retirement Planning?
Retirement planning is the process of
determining retirement income goals and the
actions and decisions necessary to achieve those
goals. Retirement planning includes identifying
sources of income, estimating expenses,
implementing a savings program and managing
assets.
3
What are Retirement Plans?
Retirement Plans are a category of life insurance
plans that are specially designed to meet your
post-retirement needs such as medical and living
expenses. Pension plans or retirement plans
offer you the dual benefits of investment and
insurance cover. You just have to invest a
certain amount regularly to accumulate over a
specific tenure in a phase-by-phase manner. This
will ensure a steady flow of monthly pension once
you retire.
4
Features Benefits of Pension Plans
Tax-Efficiency Pension plans are entitled to tax
exemption specified under Section 80C. If you
want to contribute to pension plans, the Indian
Income Tax Act, 1961, offers significant tax
respite under Chapter VI-A. Section 80C, 80CCC
and 80CCDspecify them in detail. Surrender
value Surrendering ones pension plan before
maturity is not a smart move even after paying
the required minimum premium. This results in the
investor losing every benefit of the
plan including the assured sum and life insurance
cover. Liquidity A retirement plan is
essentially a product of low liquidity though
some companies let you withdraw even during the
accumulation stage. So, you will have funds to
fall back on during emergency without having to
rely on bank loans or borrow from other people.
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