ULIP Vs Pension Plans - Which is Better for Retirement?

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When it comes to a comparative analysis of ULIPs and pension plans to decide which option is the best, both these plans have their own benefits and relevant features. Viewed from the perspective of tax savings, ULIPs definitely score over pension plans, as ULIPs are eligible for tax exemption under Sections 80C and 10D of the Income Tax Act, 1961. Moreover, ULIPs are much more flexible in terms of fund options and choosing what to do with the accumulated funds. However, there is a catch here. Since ULIPs are not inherently defined to serve as annuity products, pension plans have an advantage that a particular percentage of the corpus is mandatorily meant to purchase annuity. In case of ULIPs, there is no such pre-fixed condition. If on one hand this allows you the freedom to invest the funds as per your wish, on the other it cannot be said that this serves as the guarantee of annuity. The best option is to plan your financial goals with focus on terms and then compare the various features that are available. 

HDFC Life offers HDFC Life Pension Guaranteed Plan - a single premium annuity plan that offers you to have a regular pension structure in place after retirement. For details, click on the mentioned link: https://www.hdfclife.com/retirement-and-pension-plans/pension-guaranteed-plan.

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