What is Retirement Planning?

Retirement planning is the process of setting retirement income goals and following them by pursuing actions that are necessary to achieve those goals. As opposed to the past generations, retirement is now not just limited to sitting back and living off the monthly pension. It is so much more than that, where people continue to live with new set of goals and more dedication to personal life. With the help of best retirement plans, you can tackle all the financial issues that would arise post-retirement, and you can live your life on the achievable and enjoyable path as planned. Once you start investing for retirement from early on, your savings would get compounded and you will gain the benefits of the growth. Though retirement planning is a life-long process, it is better to start planning from the beginning.

 

In order to be able to use 70% of the pre-retirement income after retirement, one must start saving from a young age. Moreover, it is also important to invest in the right instrument to be able to multiply your funds and generate wealth for the long-term.

 

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Why do you need Retirement Planning?

Here are some of the most crucial benefits of retirement planning :

 
  • Cover daily life expenses :

    Lack of a regular monthly income could be a nightmare in grappling with daily life expenses. With the best retirement plans, you can avoid this nightmare from becoming a reality.
  • Cover medical expenses :

    Retirement is often accompanied by health issues and emergencies. Retirement investment plans help cover emergency/ medical expenses.
  • Fight inflation :

    As you reach the age of retirement, you would have to pay a lot more for daily life goods and services due to inflation than you did a few years ago. Without a sound retirement investment plan, this could be very difficult.
  • No state-sponsored pension :

    Lack of a regular monthly income could be a nightmare in grappling with daily life expenses. With the best retirement plans, you can avoid this nightmare from becoming a reality.
  • Meet retirement goals :

    Lack of a regular monthly income could be a nightmare in grappling with daily life expenses. With the best retirement plans, you can avoid this nightmare from becoming a reality.

Retirement Plans Offered by Bharti AXA Life

Plan Name

Details

Bharti AXA Life Aajeevan Sampatti+

A savings plan that offers dual benefits of guaranteed annual pay outs with life cover up to age 100.

 

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  • Entry Age: 91 days
  • Minimum Sum Assured: INR 50,000
  • Maximum Sum Assured: No limit, subject to underwriting
  • Premium Payment Term: 7, 10, and 15 years
  • Premium Payment Modes: annual, Semi-annual, quarterly* and monthly*
  • *Through auto-pay only

Bharti AXA Life Grow Wealth

A savings-oriented unit linked insurance plan that offers you multiple fund options to suit your investment needs with a life insurance cover to protect your family in case of any unfortunate event.
NOTE- In this policy, the investment risk in investment portfolio is borne by the policyholder

 

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  • Entry Age: 91 days
  • Minimum Sum Assured: based on Minimum Premium
  • Maximum Sum Assured: No limit
  • Term of Plan: 5, 10, 15 and 20 years
  • Modes of Premium Payment: online and offline
  • Joint Life cover option

Bharti AXA Life Super Endowment Plan

A plan that helps to build your wealth, in a planned manner and meet your financial goals and future expenses.

 

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  • Entry Age: 2 years for 16 year term and 91 days for 18/20 year term
  • Minimum Sum Assured: INR 50,000
  • Maximum Sum Assured: No limit, subject to underwriting
  • Policy term: 16, 18 and 20 years
  • Minimum Annual Premium: INR 3,049 for 15 year premium payment term and 20 year policy term

Bharti AXA Life Dhan Varsha

A non-linked participating plan that offers you Non-Guaranteed Cash Bonuses from the 7th year, Guaranteed* Survival Benefits from the 10th year onwards, as well as a lump sum at the end of the Policy Term.

 

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  • Entry Age: 91 days
  • Minimum Sum Assured: INR 25,000
  • Maximum Sum Assured: No limit, subject to underwriting
  • Term of Plan: 20 and 25 years
  • Premium Payment term of – 10 & 15 years for policy term of 20 & 25 years respectively
  • Minimum Annual Premium: INR 3443 for Policy Term of 20 years INR 2515 for Policy Term of 25 years

Bharti AXA Life Saral Pension Plan

It is a single premium, non-linked, non-participating individual immediate annuity plan. Immediate Annuities are a smart way to ensure guaranteed regular income even post retirement.

 

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  • Minimum Entry Age: 40 years
  • Maximum Entry Age: 80 years
  • Minimum Annuity Amount: INR 1000 for monthly, INR 3000 for quarterly, INR 6000 for half-yearly, and INR 12,000 for yearly.
  • Maximum Annuity Amount: No limit
  • Policy Term: This is a Whole Life Product
  • Modes of Annuity Payment: Monthly, Quarterly, Half-Yearly, Yearly

Types of Pension Plans in India

  • Deferred Annuity

    A deferred annuity plan allows you to accumulate the corpus through either single premium payment or regular premium payment over the period of policy term. It offers different benefits to the insured. Moreover, tax exemption as per current provisions of the Income Tax Act can also be availed under this type of pension plan.
  • Immediate Annuity

    In the immediate annuity plan, the insured can receive annual/ monthly pension immediately. On payment of a lump-sum amount, the policyholder can begin receiving instant payment of pension. Under this scheme, policyholders can choose from different annuity options, and can also avail the benefit of tax-exempted premium. The nominee of the plan becomes the receiver of money in case of the demise of the policyholder during the policy tenure.
  • Annuity Certain

    Under this type of pension plan, the annuitant gets the annuity paid for a specific number of years. The annuitant can select the period of payment and thus receive the payment accordingly. In case of the annuitant passing away, the amount can be received by the beneficiary of the policy.
  • With and Without Cover

    The pension plans with cover have the component of life cover added in the plan. On the death of the policyholder, the beneficiary gets paid a lump-sum amount. The pension plan without cover offers no life cover to the insured policyholder. On the death of the insured, the nominee receives the corpus.
  • Guaranteed Period Annuity

    Under guaranteed period annuity pension plan, the policyholder receives annuity for a certain pre- determined period like, regardless of the survival of the insured.
  • Life Annuity

    Under life annuity plan, the annuitant is paid the pension amount until death. In case of the death of the policyholder, and under the chosen option of ‘with spouse’, the spouse of the policyholder can receive the amount.
  • Pension Funds

    This type of pension plan remains in force for a long period of time. It also provides a better return upon maturity.
  • National Pension Schemes (NPS)

    The government of India has introduced a new pension scheme, wherein the policyholder can put the amount of savings in the National Pension Scheme. The money put in this scheme is invested in equity and debt funds and the returns on investment can be generated. Under this scheme, the policyholder can withdraw 60% of the amount at the time of retirement, and 40% of it is used to purchase annuity.
  • Whole Life ULIPs

    Under this type of pension plan, the money stays invested for the whole life (typically till the life insured reaches the age of 100 years). At the time of retirement, the policyholder can make partial withdrawals (according to terms of policy chosen) and get a tax-free income. They can also make additional withdrawals whenever necessary. Note- in ULIPs, the investment risk in investment portfolio is borne by the policyholder.
  • Defined Benefit

    Under the defined benefit type of plans, the policyholder can pay a specific amount from their retirement income. This is decided on the premise of the pension amount, that is determined on the basis of the employed policyholder’s earnings as well as number of years of service.

Benefits of Retirement Planning

In modern times, it is highly necessary to do efficient retirement planning to be able to deal with any kind of shortages and emergencies in the retirement days. By investing for retirement from now onwards, you can assess and evaluate how quickly you can achieve your retirement goals. Moreover, you can control the cash flow, in terms of the earnings and expenses, and analyse the risks involved. Hence, mentioned below are the benefits of retirement planning and investing for retirement :

 
  • Cover Medical Emergencies

    As an individual gets old, their health-related problems and expenses are likely to get increased. Ageing and health problems are the two aspects that go hand-in-hand. Thus, medical expenses can be a huge dent during post-retirement period, when there is no regular permanent income on a monthly basis. Moreover, the medical and health expenses are rising rapidly. Therefore, with the best retirement plan, you would be able to accumulate money that would be enough to cover all medical expenses post-retirement.
  • Deal with Uncertainties

    Life is full of uncertainties. It becomes more difficult to tackle the sudden risks and uncertainties when you do not have sufficient financial resources. It would also make you more prone to stress and financial burden post-retirement. Hence, this is another one of the crucial reasons of buying retirement investment plans and keeping yourself financially secured and burden-free.
  • Be Prepared for Rising Inflation

    Inflation is the constant and rapid rise in the price of goods and services. India faces high rate of inflation in all the fields. Hence, it requires us to plan for long-term financial needs of ourselves as well as our family. Proper retirement planning is one of the most efficient ways of long-term planning and overcoming the risks of inflation.
  • Be Independent

    Looking at the lifestyles of people in modern India, it is evident that it is not always possible for parents to rely on their children for monetary support. There is a culture of nuclear families growing rapidly, with retired parents living on their own. It is with the help of retirement savings and planning that individual can be financially independent and tension-free.
Bharti AXA Life Guaranteed Wealth Pro
Invest Rs. 5,000#/Month for 10 years | Get Rs. 14,39,732^

Features of Retirement Investment Schemes

Retirement represents a milestone in a person’s life. It is the beginning of a new life of the retired. They can pursue the other plans and goals in life, which were earlier burdened and disturbed by the daily work routine. But life still goes on, and they do require financial resources to fulfil these dreams and goals as well as life’s basic necessities. Hence, it is important to choose the best retirement plan for yourself. Here are some of the general features of retirement investment policy plans and schemes that are offered by insurance providers in India :

 
  • Guaranteed Income

    Retirement plan is the gateway to receiving regular and guaranteed income post-retirement. The fixed and steady income ensures a financially independent lifestyle even after retirement. You can use the retirement calculator to have a rough estimate of the amount you will require post-retirement.
  • Coverage Terms and Scopes

    The nature of retirement plan benefits is either immediate or deferred. The annuity payouts depend on the nature of the plan, wherein the payouts begin immediately after the plan is purchased in the immediate mode, and the amount gets accumulated for a fixed number of years before being paid out in the deferred mode.
  • Main Fund Coverage

    The main fund coverage is also known as the sum assured, which indicates the total coverage to be received. Make sure to check the total sum assured before purchasing the plan.
  • Liquidity

    Retirement plans are a product of low liquidity. However, there are plans available that allow withdrawal during the accumulation stage as well.
  • Duration of the Fund Build-up

    This feature indicates the number of years for which the policy plan allows you to build up the fund corpus. This accumulated fund is from which the regular pension payouts will be made post-retirement.
  • Flexibility of Investment

    The annuity instrument under the retirement plan must offer you the choice of fund option, especially if the returns are market-linked.
  • *Tax Benefits

    Some retirement/pension plans offer tax exemption under the Income Tax Act of 1961.
  • Vesting Age

    Vesting age is the age from which you begin to receive monthly pensions. In most of the pension plans the vesting age is starts from 45 to 50 years. Though some companies also allow the vesting age up to the age of 90 years.
  • Partial Withdrawal Option

    Partial withdrawal is a flexibility that is offered in the plan. It does not have rigid inflexible terms and conditions pertaining to withdrawal during the policy period of fund accumulation. Under this feature, you can withdraw a particular percentage of the main corpus in times of emergency requirement, depending on the terms of the policy purchased.
  • Payment Period

    Payment period is often confused with accumulation period. Payment period is the period in which pension is received post-retirement. Most of the retirement plans keep the payment period and accumulation period separate.

Who should buy a Retirement Policy Plan?

Anyone who is willing to lead a comfortable post-retirement life, would require to save up and plan for it well in advance. Having financial self-sufficiency and planning in the second innings of life can prove to be a great boon. As you age, you may develop hobbies and passions that you might want to pursue. Due to the tight schedule and constraints of work life, you might not be able to fully realize them. In such a case, you are most likely to put those dreams into the backseat until retirement and pursue them successfully then. Retirement plans and schemes are the best for you if you want to live your post-retirement life without any financial burden and live it to the fullest. These schemes are also most suitable for you if you live in a nuclear family. Moreover, if you are someone who wants lifelong security even after retirement, and want to live according to the quality of life that you expected by working all your life, then having a retirement plan/scheme is a must. It will not only help you relieve financial stress, but also fulfil your biggest dreams, liabilities, and responsibilities out of the savings and fund collected from your lifelong earnings.

How to Choose Best Retirement Plan?

Choosing the right retirement plan for your future needs is the most crucial part of finalizing your best retirement plan. In order to know what plan suits you best, there are certain factors to be considered and steps to be followed. They are as mentioned below :

 

  • Consider the following factors :  
    • Your current age
    • Your current income
    • Amount of income you wish to receive post-retirement
    • Maximum amount of premium you can afford to pay
    • The period for which you will pay the premium
  • Do in-depth research of the available plan options.
  • Understand the product thoroughly and make an informed decision.
  • Do not choose a product only for the tax benefits.
  • Consider having the following documents for the process :  
    • Proof of age like driving license, passport, PAN card, etc.
    • Proof of address like Aadhar card, driving license, passport, etc.
    • Proof of identity like passport, driving license, Aadhar card, voter ID, etc.
    • Proof of income like salary slips, ITR V for the past 3 years, etc.
    • Passport size photograph

Retirement Plans We Offer

Bharti AXA Life Guaranteed Wealth Pro

  • A non-linked, non-participating individual savings life insurance plan
  • Flexibility to choose the payout structure
  • Multiple income options
  • Option to receive tax free income beginning from the second policy year itself
  • Option to get lifelong income along with life cover till 100 years of age

Bharti AXA Life Saral Pension

  • Simple, easy to understand features
  • Guaranteed fixed income for whole life
  • Joint Life Option
  • Multiple Annuity Pay-out Frequencies
  • Return of Purchase price In case of death of the annuitant (or the last surviving annuitant in case of Joint life)

Bharti AXA Life Aajeevan Sampatti+

  • Life cover up to age 100
  • Guaranteed Annual Payouts from 10th policy year (as per the terms and conditions of the policy)
  • Maturity Benefit along with Cash Bonuses
  • Tax benefits

Retirement Insurance Frequently Asked Questions (FAQs)

What is Retirement Planning?

Retirement planning is planning your finances in such a manner that you can achieve your present as well as future financial goals. For this, you must be able to estimate the future cash flow.

What are the benefits of Retirement Planning?

Financial stability of yourself as well as your dependents, achievement of financial goals, making wiser investments, living comfortable post-retirement life, covering medical and other emergencies without any stress, etc. are some of the major benefits of retirement planning.

What is the ideal retirement age in India?

There is no specific or ideal retirement age in India, but you must consider your own preferences and start investing at a young age to avail more benefits and funds.

Life Insurance Coverage is available

Bharti AXA Life Insurance is the name of the Company and Bharti AXA Life Aajeevan Sampatti + is only the name of the Non-Linked, Participating Individual Life Insurance Savings Plan and does not in any way represent or indicate the quality of the policy or its future prospects. UIN: 130N058V03

Bharti AXA Life Insurance is the name of the Company and Bharti AXA Life Grow Wealth is only the name of the Unit-Linked, Individual Life Insurance Plan and does not in any way represent or indicate the quality of the policy or its future prospects. UIN: 130L088V03.
In this policy, the investment risk in investment portfolio is borne by the policyholder.

Bharti AXA Life Insurance is the name of the Company and Bharti AXA Life Super Endowment Plan is only the name of the Non-Linked, Non- Participating, Individual Life Insurance Savings Plan and does not in any way represent or indicate the quality of the policy or its future prospects. UIN: 130N089V02

Bharti AXA Life Insurance is the name of the Company and Bharti AXA Life Dhan Varsha is only the name of the non- linked, participating, individual, life- insurance savings plan and does not in any way represent or indicate the quality of the policy or its future prospects. UIN: 130N070V04

Bharti AXA Life Insurance is the name of the Company and Bharti AXA Life Saral Pension is only the name of the single premium, non-linked, non-participating individual Immediate Annuity Plan and does not in any way represent or indicate the quality of the policy or its future prospects. UIN: 130N104V01

For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding a sale

Riders are not mandatory and are available for an additional cost

Tax benefits are as per Income Tax Act, 1961 and subject to any amendments made thereto from time to time

Advt No.: II-Feb-2022-3708