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Retirement - Annuity & Pension Plans

Timely Planning is the way to #RetireOnYoursTerms!

Start saving today to enjoy a worry-free retirement life. Buy a retirement plan now.


Email 1800-266-9777 (All Days, from 9am to 9pm, Toll Free)

Have you saved enough to meet your expenses post-retirement?

  • Listing Bullet Inflation can eat away your dwindling retirement income easily.
  • Listing Bullet With increasing life expectancy, the longer you live, the more you spend.
  • Listing Bullet Start preparing early to save enough to support your needs and wants.
Have you saved enough to meet your expenses post-retirement?

Retirement Plans

Get better equipped at dealing with your post retirement years.

HDFC Life New Immediate Annuity Plan

A traditional Retirement Plan with guaranteed returns1

UIN: 101N084V27

KEY FEATURES
  • Get GuaranteedIncome during retirement at your desired frequency.

  • Benefit from higher annuity rates at purchase price of ₹ 2,50,000 or higher.

  • Get Return of Purchase Price upon death or critical illness.3

  • Choose your payout frequency– monthly, quarterly, half-yearly, or yearly.

How much should I save for my retirement?

How much should I save for my retirement?

Use our quick and simple calculator to know what’s ideal for you.

LET'S CALCULATE

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HDFC Life Systematic Retirement Plan

A limited premium deferred annuity plan with flexibility to choose premium payment term, deferment period and annuity payout date.

UIN: 101N143V03

KEY FEATURES
  • Pay premiums systematically for a limited premium paying term
  • Option to defer annuity payouts by choosing the deferment period
  • Guaranteed10 income for whole of life
  • Option to receive annuity monthly, quarterly, half-yearly or yearly
  • Option  of Return of Total Premiums Paid on death 

HDFC Life QROPS

Have pension fund in the UK and looking to migrate it to India?

  • Tax efficient transfer of pension funds from UK to India

  • Enjoy steady income in India post retirement

  • Avail attractive annuity rates and fund growth

     

LEARN MORE

What Are Retirement Plans?


Retirement plans are financial policies that enable you to plan for the future, even when you no longer have a steady income. There are two types of plans:

  • Pension Plans
    These investment plans allow you to systematically save money over the years so that you can enjoy a steady income once you retire. With a pension plan, you can maintain your financial independence, even when your income stops post retirement. Most importantly, a pension plan allows you to deal with inflation without compromising on your standard of living.

  • Annuity Plans
    An annuity plan helps you secure your financial future with regular income payments for the rest of your life. With a pension policy, you have something called an accumulation phase. During this time, you put money into the policy periodically. When you choose to retire, you can purchase an annuity with these accumulated funds. The annuity then provides you with regular payments as per the terms and conditions of the plan you purchased. 

Why Do You Need Retirement Plans?


Retirement plans allow you to plan your finances so that you always have a steady source of income. They help you grow your money for the future, ensuring you can maintain your standard of living, despite inflation. Annuity plans also come with a joint life option within which in case anything happens to you, your spouse will continue to enjoy lifelong payouts.

How Do Pension Plans Work?


When people invest in pension plans, they hope to financially secure their future. The idea is to have a steady inflow of cash even after retirement. But how do these plans work? You have to put money towards your pension in the form of an investment or premium. The money you pay gets invested in assets or funds that you select. The investment lasts for a pre-determined period and on maturity, you can receive pension benefits. You can opt to commute a partial amount and purchase an annuity with the remaining funds.

What are the Steps to Buy Retirement Plan?


A retirement plan is a multi step process that evolves with time. The following steps will help you map out a retirement plan:

  • Set a budget - list out 30 things in order of priority breaking them into short, medium and long term goals. Allocate your current income to get an estimate.

  • Evaluate your current financial position - examine your current financial position versus your financial goals, be more proactive about savings, investments and income.

  • Identify your income sources -  consider all your income sources including insurance, investment portfolios, assets, and an option to do a part-time job to take charge of your retirement funds.

  • Are you running short? Re-evaluate your investment, make catch-up and bite-sized contributions to fill the gap.

Features of Retirement Plans in India


If you’re deciding whether a retirement plan is a good option, here’s a look at the features they offer:

  • Steady Flow of Income
    Retirement plans offer you a guaranteed1 income on retirement, so you don’t have to worry about not having a steady income once you retire. Additionally, depending on the policy you opt for, you can secure your spouse’s financial future even if something happens to you.

  • Vesting Age
    The vesting age is the time from when you become eligible to start receiving your pension payments. In India, most plans offer a minimum vesting age of 40 or 50 years since people retire and start receiving their pension when they are 60. You can find a plan that offers you what you need based on your retirement plans and goals

  • Surrender Value
    If you opt to surrender your pension plan before it matures, you will forfeit any additional benefits it offers. Your plan will be considered a limited value plan, and you can commute a portion of the fund value and purchase an annuity with the remaining amount.

  • Accumulation Period
    You can opt to make a lump sum investment into your pension plan or make regular monthly or annual payments. Over time, your wealth grows since the money gets invested for you. The longer your accumulation period, the more money you will likely enjoy at maturity. If you start the accumulation period at the age of 40 and want to start your pension payments at 65, you invest for 25 years. The corpus you build up over that time will provide you with the bulk of your pension payments.

  • Payment Period
    Once the accumulation period gets over, you start receiving your pension payments. This phase is called the payment period. With annuity plans, the payments continue for as long as you are alive. So, you choose when you’d like to start the payment period. 

Retirement Plan Buying Guide

1 3 Reasons You Need To Start Your Retirement Planning Today

By your mid-thirties, chances are that your standard of living has seen a great improvement since your twenties, when you first joined the workforce. But have you stopped to think about what happens when you are no longer able to work for a living? No, retirement planning is not something you need to worry about when you’re older. It’s something you need to act on today. Getting an early start on building that retirement nest egg can make a world of a difference to the security of your financial future. Here’s why you should start planning for your retirement today.

More Savings, More Earnings

We all know the burden of taxes can be a hard one to bear, especially when you have a family to provide for. With the weight of these financial burdens, it can be easy to neglect yourself and your future financial security. You tell yourself that you’ll start saving for retirement once you get that promotion, once you turn 40 or once your kids go off to college.

However, the sooner you begin the better. In fact, investing money in your retirement plan can even help you save on taxes. By investing in retirement schemes such as the Public Provident Fund (PPF) and New Pension Scheme (NPS), you can avail up to Rs.1.5 lakhs in tax deductions under Section 80C.*

What’s more, the power of compounding has a lot to offer you. Say you begin investing Rs.300 per month at the age of 25. Assuming an interest rate of 8%, you’d have over Rs.1 million by the time you are 65. Now if you invested the same amount starting at the age of 35, you’d have only Rs.440,000 at 65. In this case, starting a decade earlier would more than double your final amount.

Maintaining Your Independence

When you’ve spent your life supporting and providing for your children, it’s likely that they will want to help you out financially in your old age. However, being too dependent on them could mean them delaying their own financial goals as young adults. Wouldn’t it be better instead for you to have your own source of income? The earlier you start on your retirement savings, the bigger corpus you’ll have to fall back on. Perhaps you will even be able to help your children as they get settled!

And should something happen to you, a retirement plan or a pension plan will help ensure that your spouse and children are looked after in your absence.

Reaping Rewards

Sometimes it seems that the harder you work, the more inflation gets ahead of you. But what do you do about it? You save - not only for short-term goals and emergencies, but for your retirement as well. Even if it is only a small sum that you can manage to stash away at the end of the month, it’s better than nothing, and the small sum will grow eventually.

So don’t hesitate to start investing. Start small and let compounding do its job, so you don’t have to live small later in life. It’s possible to maintain your current standard of living after you retire or even go on that dream vacation. All it takes is the right approach.

Now that you’ve seen how early retirement planning can help you continue to live life on your own terms even after you’ve stopped earning, your next step is to start investing in a retirement plan. With the abundance of options available in the market, it can be difficult to zero in on the retirement plan for you. At HDFC Life, we provide retirement plans to help you meet the high cost of living and rising inflation. Choose from our range of pension schemes to find the one that best suits your needs.

2 Factors to Consider While Buying Pension Plans

You are convinced that you need to buy a pension plan for a financially secure retirement. However, you are not sure how to get started and the various steps to take. Here are some major aspects about pension plans that you need to keep in mind before buying them.

  • Determine retirement savings target
    When you are saving for your retirement through regular in retirement plans, or in a pension plan or a pension scheme, you need to figure out the savings you require at retirement. This will help you figure out the regular investment you need to make in pension plans. Remember to take into account your retirement savings from other sources like provident fund. In this stage, also take into account the retirement income needs of your spouse and family members, such as a financial dependent member with special needs. If this sounds a little complex for you, take the help of online calculators or the help of a financial advisor with proven expertise.

  • Start early
    To have ample retirement savings, you need to buy the pension plan early in your work life. This will make sure you have ample time to make small investments so that you can save a large amount.

  • Premium payment period
    When buying a pension plan from a life insurance company, get a sense of the time till which you will need to make the premium payment. This will keep you informed about your financial commitments to the pension plan.

  • Determine the kind of retirement income needed
    The amount of regular investments you need to make in pension plans also depends on the retirement income arrangements you expect to have in place. For instance, if you have company pensions or superannuation funds, these, along with provident fund and gratuity, will mean that you will need to reinvest these retirement savings at retirement, or create regular income through, among other things, annuities. Since two thirds of retirement savings in pension plans or retirement plans have to be converted into regular retirement income, you need to have a sense of your retirement income needs.

  • Look beyond tax savings
    Sure, pension plans in India provide annual tax deduction from total income under Section 80CCC of the Income-tax Act, 1961, for amounts upto Rs 1.5 lakh but that should not the main reason for buying a pension plan. Pension plans help you address the risk of outliving your money in retirement. You need to manage the risk in any case. Therefore, ensure that you eyes are firmly on your retirement income needs when buying a pension plan. In India, retired life is no longer a small period. The right decisions taken while buying a pension plan may well make a difference between you digging deeper in your pockets in retirement and leading a carefree retired life.

3 Best Time to Invest in a Pension Scheme

The best time to start investing in a pension scheme is right now. When it comes to saving up for your retirement, the earlier you start, the better. The longer you stay invested, the more time you have to build up a significant corpus for your golden years.

4 How to Calculate the Return on a Pension Scheme?

Calculating the return on your pension scheme isn’t always easy. Understanding how much you need to invest to gain a certain amount in the future requires a lot of strategic planning. You can use our retirement calculator to figure out how much you would possibly need in the future. Our calculator will also provide you with an estimate of how much you need to start putting into your pension plan fund today based on when you’d like to retire.

Retirement Planning is simple.

Tune in to this video to know all about Pension Plans.


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We’ll tell you everything you need to know about Retirement Plans.

1 When should I start planning for retirement?

Retirement planning really depends on what stage of life you are. When you want to start really depends on you, your needs at 30 versus at 50 will be very different, so plan wisely.

  • If you are 20-30 years away from retirement then you need to be focused on accumulating retirement assets. At this stage try to get through the crunch years in decent overall financial shape (without credit, debts, etc.).

  • If you are 10-15 years away from retirement then it’s crunch time, and fine-tuning your retirement plan. Look at your income options, your retirement assets and align your retirement goals to them.

  • If you are just about to retire then it’s all about adjustments to minimize tax, maximize your income, and manage your assets. It’s about making your assets last as long as you can.

The earlier the planning the better but the closer you get to your retirement, you will have to pay close attention to details.

2 What is the importance of insurance in retirement planning?

Many of us view life insurance as a way to protect families with death benefits. It is not just a savings or investment vehicle, but if needed, it can provide flexibility and access to a policy’s cash value, making it a valuable addition if properly utilized in a comprehensive retirement income plan.

Having an appropriate type with the correct amount of life insurance in your retirement will accomplish multiple things. It can help protect your income, provide tax-free cash flow, manage taxes, help your loved ones recover from any financial risks, and also improve the total returns in your portfolio.

In short, life insurance can provide more than just protection as it has the potential to provide protection and benefits throughout your retirement years.

3 Can I change the nominee of the policy?

Yes, you can change the nominee on your policy. You can complete the process online by signing into your account and managing your policy online. Click the My Policy Tab and then select the Change in Nominee/Beneficiary Name option. Fill in the requisite details and submit your application to change the policy nominee. 

4 What is the vesting date?

When talking about pension plans, the vesting date is the maturity date. So, it is the date when the policyholder starts receiving the benefits or the pension or when the pension corpus is invested into an annuity.

5 How can I Pay the Pension Plan Premiums?

You can pay your retirement plan premiums online via:

  1. Netbanking
  2. Credit card/ Debit card
  3. Debit Card with PIN
  4. SI on card

6 Whom should I contact for queries?

In case of any queries related to plan or form filling pls call our toll free number 1800 266 9777 or contact us at [email protected]
For submitting documents or any other query after premium payment, you can write us at [email protected] or call us on toll free number 1800 266 0315.
Post policy Issuance you can reach out our customer service desk on 1860 267 9999 (Local call charges apply) or write to us at [email protected]

7 How do I calculate the retirement corpus?

You can use a mathematical formula to calculate your retirement corpus. This formula, known as the present value formula, is:

Present Value = Future Value · (1+r)n

Here, r is the rate of returns and n is the number of years.

8 What are the tax benefits on pension plans?

You can claim tax deductions on contributions you make to your pension plan up to INR 1, 50,000 per year. The deduction terms are outlined under Section 80CCC of the Income Tax Act, 19615. Certain pension plans also offer additional tax benefits under Section 80CCD. 

9 What are participating and non-participating pension plans?

Participating pension plans, also known as par policies, allow the policyholder to share the insurance company’s profits. So, whenever the company earns profits, the policyholder will earn a portion of these profits in addition to the pension plan’s guaranteed benefits. The benefits are known as bonuses, incentives or dividends.

In non-participating pension schemes, individuals do not earn additional incentives. They only get the guaranteed pension on the plan’s maturity.

10 What is annuity?

An annuity is a type of financial plan that allows individuals to receive regular payments for the rest of their lives after making a lump sum contribution. When you opt for an annuity plan, your insurance provider invests the money on your behalf and pays out regular sums at given intervals.

11 I already have a provident fund account. Do I need a pension plan?

When it comes to planning for the future, you can never be too careful. While a provident fund account also allows you to save for the future, the kind of withdrawals you can make are limited. On the maturity of a provident fund, you can only withdraw a small portion of the funds. You must use the rest to purchase annuity.

With a pension plan, you can build up a corpus for the future and use it any way you wish since there is no cap on the amount you can withdraw on maturity.

12 Can I have multiple pension plans?

Yes, you can choose to invest in multiple pension plans. However, there is a limit on the maximum amount you can contribute across all policies, especially if you’d like to enjoy tax benefits5.

13 Does the pension plan end after the policyholder’s death?

No, most annuity plans come with a life insurance component. So if the policyholder passes away, the nominee will receive the benefits of the policy. They can choose to withdraw the entire amount or use a part of the amount to purchase an immediate annuity.

Click here to view the Specimen Policy Document.

  1. The word “Guaranteed” and “Guarantee” mean that annuity payout is fixed once the policy has been purchased.
  2. Only for policies that are in-force. (3% of sum assured on vesting) that will get accrued for each completed policy year. Subject to policy being in force and all due premiums being paid. Conditions Apply.
  3. Available only under ‘Life Annuity with Return of Purchase Price on diagnosis of Critical Illness’ option.
  4. No entry and exit charge mean no premium allocation and no discontinuance charge respectively. Only Fund Management & Investment Guarantee Charges as applicable under this plan.
  5. As per Income Tax Act, 1961. Tax benefits are subject to changes in tax laws.
  6. Provided all due premiums have been paid.
  7. In the case of Joint Life annuities the payout continues till either of the lives chosen in the policy is alive.
  8. The age mentioned is the age as per the last birthday.
  9. Total Premiums Paid means total of all the premiums received, excluding any extra premium, any rider premium and taxes.
  10. Amount of guaranteed income will depend upon premiums paid subject to applicable terms and conditions.

ARN – PP/07/22/29849