What is a Pension Planner and Why Do You Need to Use It?

What is a Pension Planner and Why Do You Need to Use It?

A pension planner is a framework of investments and schemes that provide income through periodic pension during retirement. From the features available in a pension planner, you can select a personalized pension plan. This pension plan will help you to cover of the major costs of your retirement expenses. Thus, you won’t need to rely on any other sources to finance your expenses. Read on to know more about a pension planner and its benefits.

What is a Pension Planner?

A pension planner is a tool developed by financial institutions and websites that generates customized pension plans. The pension planner will consider several variable entries to display plenty of pension plans suitable for the individual. These variables include the customer’s age, desired retirement age, expected inflation rates, current income, and required pension returns. Then an individual can choose a final pension plan from the list of strategies suggested by the pension planner. They have to select one considering the feasibility of each pension plan according to the possible savings from their income.

An early pension plan made with the help of a pension planner will help you in the long run. By starting early, you only need to spend a small portion of your income on the pension plan regularly. A delayed pension plan might lead to unnecessary financial burden on your family. The best pension plan will have additional provisions to help you decrease your financial obligation. That is why you should use the Retirement Planner Calculator.

Why Do You Need to Use a Pension Planner?

You can do pension planning with the help of financial advisors, lawyers, insurance agents, and private banking institutions. An online pension planner is helpful in several ways. The listed below are the significant reasons why you should have pension planning through a pension planner.

1. To Create a Practical Pension Plan with Insurance

Excellent pension planning has possibilities of investment through insurance policies. You can decide the schemes you are opting for while creating a pension plan. If you need, you can choose an insurance policy that provides health and life coverage to you and your family.

2. To Create a Plan That Maintains Current Lifestyle

Because many pension planning methods are not personalized, the investment amount can be too high. And to meet this added expense of investment, you have to cut back on some of your lifestyle choices. But the best pension plan from a good pension planner allows you to adjust the monthly or yearly premium amount. By doing so, you won’t have to compromise or cut back too much on your present lifestyle.

3. To Create a Separate Reserve for Emergencies

Pension planner has provisions to save for pension income with extra funds for emergencies. You can use this emergency fund for unexpected incidents without depending on other sources to generate the required revenue.

4. To Create a Plan with Inflation Protection

Pension planners always consider estimated inflation rates. It is to ensure that the value of your invested money won’t decrease with time. The pension planner will show how to save for pension without fearing inflation in the distant future.

5. To Create a Plan That Maximizes Tax Savings

Some investment methods like insurance, FDs, Public Provident Funds, Nationalized Savings schemes, etc., have tax exemption benefits on income tax. A good pension planner will do pension planning while considering these schemes to decrease your tax money. However, one must bear in mind that tax benefits are as per current tax laws, which are subject to change.

To Conclude

Now that you know what a pension planner is and why you need to use it, take its help immediately. Any delay will only mean a loss of time, investment opportunities, and resources.


*Tax benefits are as per the Income Tax Act, 1961, and are subject to any amendments made thereto from time to time
The article is meant to be general and informative in nature and should not be construed as solicitation material. Please read the related product brochures for exclusions, terms and conditions, warranties, etc. carefully before concluding a sale.
Make responsible financial decisions. Consult with your financial advisor before making any decisions on insurance purchase.

Suggested Plans

Bharti AXA Life Guaranteed Income Pro

  • A Non-Linked, Non-Participating Individual Life Insurance Savings Plan
  • 4 Income options to choose
  • Guaranteed 10% Addition of Annualised Premium (as per the terms and conditions of the policy)
  • Get all your premiums back at the end of the payout period under Long Term Income and Deferred Income variants
  • Flexibility to choose premium payment term or policy term