How to Choose the Best Pension Plan in India?

Retirement planning is one of the most sought after goals for most salaried individuals across the globe. After all, who doesn’t want to score a peaceful and prosperous retirement? Though everyone wants to live happy and content post retirement life, only a few are careful enough to plan well in advance for their retirements.

Given the existing inflation and the ever-increasing dearness, not planning your retirement well in advance may lead to a chaotic and full-of-pressure post retirement life. But you’ll be surprised to know that by simply choosing a good pension plan, you may easily score a great post retirement life.

Now, you may argue that there are virtually thousands of retirement plans and which plan should you opt for. Well, the secret is simple! You must choose a plan that’s most rewarding and offers you a lot of benefits post retirement.

To make things easier for you, here we bring to you some easy ways on how to choose the best pension plans in India. It only makes sense to keep these 7 important things in mind when planning to invest in a pension plan to ensure getting the best plan possible in the Indian Insurance sector.

7 Things to Keep in Mind When Fishing For Pension Plans in India

• Present Age-Age plays a very important role in pension planning. The earlier you will start, the more time you will get to accumulate a corpus for your pension. But in case, you’re starting late, you will need to choose a pension plan that allows you to build a huge pension corpus in a shorter span of time. 
• Intended Retirement Age– What age do you want to retire? Now, this is one question that is sure to influence your pension planning. In case, you’re planning to retire early, you will need to invest in a pension plan with great returns and huge accumulation. 
• Life Expectancy- This is yet another factor that determines the direction of your pension planning. If you and your family have high life expectancy, then you’ll need to start building a pension corpus early. And if you have a family medical history, it becomes even more important to build a pension corpus to use it for medical emergencies later. Don’t forget, due to the advancements in the world of medical sciences, the life expectancy ratio is dramatically increasing per year.
• Inflation-Okay, you probably already knows what inflation really is. But you’ll be surprised to know that inflation can quickly eat all your savings and leave you empty handed. Therefore you need to carefully consider the current and expected inflation rate when deciding on the accumulation and distribution period of your pension plans.
• Investment Portfolio – Yet another factor that you must carefully consider when planning your pensions or retirement is your investment portfolio. Carefully consider how much life insurance, health insurance and medical insurance do you have in hand and till what time are they going to support you and your loved ones. Basis this analysis, determine the right amount of corpus you need to build for your retirement and invest in a pension plan accordingly. 
• Present Lifestyle-If you have been living a really healthy lifestyle, then you will have less chances of contracting an age prone disease in your retirement years. Hence, you may choose to build a pension corpus at a slow and steady pace. However, if you are the one amongst thousands who are forced to lead an unhealthy lifestyle due to work pressure or otherwise, you will more chances to contract age prone diseases. Therefore, it makes sense to choose a pension plan that allows you to build a huge pension corpus in a shorter time frame.
• Spending Pattern- Last but certainly not the least, your spending pattern too influences your pension planning to a greater extent. If you have been living a financially frugal life, it makes sense to choose a pension plan that allows you to build a huge pension corpus quickly.

Conclusion

Remember, if you’re looking to retire in peace, you must have the assurance of a substantial pension amount in hand. That’s why it makes sense to be careful and heed to the above mentioned pointers while pension planning.