If you want to live a financially independent life after retirement, it is essential to start planning the same as early in life as possible. While you can start saving from an early age and build a large corpus by the time you retire, receiving regular pension can be an added benefit.

Moreover, as there are now many different types of pension plans available, it is easier to select one that best suits your requirements. So, what are the top options? Here are 4 of the most popular ones-

1. NPS
Regulated by Pension Fund Regulatory and Development Authority (PFRDA), the National Pension Scheme or NPS is a popular option if you want to receive a regular pension after retirement. With NPS, you can contribute to a pension account during your working life.Your funds are invested in a mix of debt and equity markets as per your choice. Once you are 60 years old, you can withdraw one part of the investment as a lump sum amount and use the remaining for purchasing an annuity which will guarantee a regular income.

2. Pension Funds
PFRDA has authorised as many as six companies to offer pension funds in India. But what is a pension fund? Pension funds require you to invest a fixed amount for a fixed duration in a fund of your choice. The fund providers generally offer many different types of funds to suit different investors.As the value of the fund increases, so does your investment in them. After retirement, you can withdraw the entire amount or remain invested and receive regular income.

3. Annuity Plans
An annuity pension plan is of two types- immediate and deferred. In immediate annuity plans, you pay a lump sum amount and instantly start receiving an annual or monthly annuity.With deferred plans, you invest a lump sum amount or make regular payments for a fixed duration. The annual or monthly annuity is only received after a particular term. The annuity payment can be either for a fixed period or for a lifetime in both the plans.

4. Pension Plans with Life Cover
These plans offer the dual benefits of life insurance and investment. One part of your premium is reserved for life insurance, and the remaining is invested in a fund of your choice.On maturity, you can withdraw the entire corpus at once or receive regular payments. If you die during the policy term, your nominee will receive the death benefit.

Try to know more about the types of pension plans listed above and go with one that offers a dynamic combination of savings, safety, and guaranteed income post retirement.

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* Terms & conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.