PENSION PLAN

Pension plan is also known as retirement plans. It also called as investment plans that lets you allocate a part of your savings to accumulate over a period of time and provide you with steady income after retirement. When you continuously invest in retirement plans, the amount grows continuously. Pension plan or retirement plans provide you with financial security so that when your professional income starts, you can still lice with pride without compromising on your living standards.

  • These plans participate in profits of the fund
  • These plans do state a rate of return at outset and are not linked to the market or any index.
  • Pension Plans are the true over the counter plans.
  • On maturity of the pension plan, one needs to purchase an annuity.
  • Premiums paid in traditional pension plans are eligible for tax benefit u/s 80CCC of IT Act.
  • Health expenses are a major concern during old age.

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