Retirement Pension Plans for Empty Nesters

The retirement period is an age where we want to enjoy every bit of it with our near and dear ones without having to face any financial struggles. We want to fulfil every dream that we have planned for our retirement age. However, with the rising cost of inflation rates, managing our current as well as future expenses might become difficult. Moreover, medical expenses have also seen a rise in the past couple of years. All of this makes it important to have a financial safety net for our family and us.

If you are an empty nester and are looking for the best retirement pension plans to invest in, you have come to the right place. Here, we will talk about everything you should know about retirement pension plans in India.

Unit Linked Insurance Plan (ULIP)

• Unit Linked Insurance Plan 1.is one of the best retirement pension plans to invest in India.
• This plan comes with a dual benefit of both insurance and investment. In other words, one part of the premiums you pay is used for insurance purposes. The remaining part of the premium is used to invest in market-related options, such as stocks, shares, bonds, equity, etc.
• 3.One of the key benefits of this plan is that it offers tax deduction benefits. You can claim up to Rs. 1.5 lakhs of tax deduction benefits in one year under Section 80C of the Income Tax Act, 1961. However, these laws are subject to change from time to time.

National Pension Scheme (NPS)

• National Pension Scheme(NPS) is another retirement pension plan you can invest in.
• This retirement pension plan comes with low-cost and affordable premiums compared to other plans.
• This plan offers tax deduction benefits of up to Rs. 1.5 lakhs of tax deduction benefits in one year under Section 80C of the Income Tax Act, 1961. However, these laws are subject to change from time to time.
• The maximum age until you can hold a National Pension Scheme account is 60 years.
• This plan provides regular pensions, ensuring that you do not face any financial constraints after you retire.

Public Provident Fund (PPF)

• Public Provident Fund (PPF) comes with a lock-in period of 15 years. However, in case you come across a financial emergency, you can make partial withdrawals after the 6th year of the policy.
• This plan offers tax deduction benefits of up to Rs. 1.5 lakhs of tax deduction benefits in one year under Section 80C of the Income Tax Act, 1961. However, these laws are subject to change from time to time. However, these laws are subject to change from time to time.
• This plan is one of the safest plans to invest in and offers risk-free investment.
• Another key feature of the Public Provident Fund (PPF) is that in case of a financial emergency, you have the provision to take a loan against the plan.

Employee Provident Fund (EPF)

• Employee Provident Fund is a savings plans for salaried employees and is backed by the Government.
• In this plan, a certain amount of share will be deducted from your monthly salary.
• Once you retire, you will receive the total amount that you and your employer contributed, including the interest.
• This plan offers tax deduction benefits of up to Rs. 1.5 lakhs of tax deduction benefits in one year under Section 80C of the Income Tax Act, 1961. However, these laws are subject to change from time to time.

Your Way Forward

You now know the best retirement pension plans for empty nesters. Investing in a retirement pension plan will ensure that you spend your golden years peacefully and without any financial hassles. It further ensures that you are able to accumulate an ideal amount while you are working so that you have a secure future.