3 Replies to “What’s the single premium amount to opt any pension plan of LIC & Pvt Sector. How much I should invest to….”

  1. Instead of Retirement plan, I will advice you to invest in some good mutual funds now due to following reasons.
    1. Retirement plans save tax as of now but returns in Annuity are taxed later & are considered as your income. so these are defered tax plan.
    2. Annuity rates are very low in all banks. They do not give more then 4-5% interest to you.
    3. These plans charge too much charges , which makes the return unattractive.
    4. Once purchased you are bound to any retirement plan for 25 years (if thinking of long term) or you will have to pay high initial charges again in any other plan.

    Better go for a good portfolio of balanced mutual funds (include some equity diversified fund too) & even at retirement age you feel to purchase annuity, you can do it at that time.

    If you have decided to go for a retirement plan, go for a single premium plan with lowest premium, which allow unlimited pop up. This will save you from allocation charges these companies charge.

  2. I agree with Mr.Bharat.
    But some people may not be using the investment avenues and even though they use, they tend to spend the amounts.Such people may go in for pension plans.
    Being a 25 years boy, you are advised to take Jeevan Nidhi a pension policy, which will act like an endowment policy upto the maturity period and will be converted to Pension plan on maturity.

    good luck
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