When you invest in a pension plan, you receive a regular income as per the plan of your choice. In the case of a deferred plan, you begin receiving the fixed regular income post-retirement, while in an immediate annuity, this benefit is paid out soon after you start the investment. 

The vesting age is the term used to denote the time from when the policyholder starts receiving their monthly pension from the pension plan. The minimum vesting age in India is 40 to 50 years, while the average vesting age is 70 years. As a policyholder of a pension plan, you can choose any appropriate vesting age between the minimum age and higher limit to start getting the benefits.

Under a pension plan, you can pay monthly premiums or as a lump sum. This corpus grows over the years and turns into a healthy fund to be utilised for your pension. Depending on the pension plan, you can choose for how many years you want to keep on investing and the amount to be invested to receive a certain total amount as the pension benefit.

The time you get your pension plan benefits is known as the payment or payout period. For example, you choose to have the benefits between the age of 65-80 years, then the payout period will be 15 years. In some pension plans, you can choose the payout/income period as per the options under the plan, while some plans allow for partial withdrawals during the accumulation period.

You will first need to select a pension plan that suits your needs. The investment amount, the mode of the payout benefit and any guaranteed additions are some of the factors you need to consider.

Start paying the premiums for the retirement plan of your choice that will contribute to the retirement corpus. To create a retirement fund, you can pay either regular premiums or a lump sum amount. Moreover, retirement plans also allow you to pay monthly, quarterly, half-yearly and annual premiums, whatever is more convenient for you.

These premiums paid towards the retirement pension plan are then invested in low-risk and fixed-income securities. The returns of which are paid out to the policyholder on retirement along with the guaranteed income. While these premiums are eligible for tax deductions^# of up to ₹1.5 Lakh under Section 80C of the Income Tax Act, the withdrawals or the payouts do not qualify for tax benefits.

At the end of the policy term, you can opt for withdrawing the entire benefit or purchasing an annuity plan. Some annuity plans also offer a return on the purchase price. This means the benefits of your pension plan will also include the purchase price which was paid for the annuity plan.

Pension plans provide you with enough finances so that you can easily manage routine expenses, lead a comfortable lifestyle and enjoy the golden period of your life after retirement.

Pension plans help you live with freedom and pride as you no longer need to ask your children/ relatives for financial support to lead a fulfilling life.

Older people are more prone to health complications. The pension plans provide you with much-needed support during medical emergencies amid rising medical costs.

There are pension plans that offer guaranteed returns, along with annuity options - immediate and deferred annuity plans.

Investing in pension plans has the compounding benefit, which subsequently helps in accumulating healthy returns at the end of the policy term.

Savings in pension plans qualify for a tax deduction benefit under Section 80C and a tax^# exemption benefit under Section 10(10D).

Pension plans secure your family's financial future in the event of your unexpected demise along with saving a good fund for post-retirement years.

You can also benefit from the add-on riders options which provide covers against critical illness, unexpected hospitalization and medical expenses, etc.

When you buy a pension plan from Tata AIA Life Insurance, you can avail of a life insurance cover along with the retirement savings. This not only helps you build a secure financial future but also protects it along with your family members.

If you buy a retirement pension plan from us, you can enjoy regular income under the retirement plan you choose. A regular income can help you take care of all your essential and daily expenses without having to touch your savings.

Individual Death Claim Settlement Ratio¹ for FY 22-23

We offer you the choice of having a deferred annuity plan or an immediate annuity plan, as per your convenience, so that you can invest in the pension plan as per your budget and receive your benefits as per your needs.

With our pension plans, you can choose how you want to pay your premiums, increase your monthly income through a premium boost, add riders^{^^} to the plan to enhance the coverage and much more!

We provide tailor made solutions to secure the golden years of your life. Our retirement plans can be customized to secure your future, fulfil your dreams, and to live a worry-free life after you have retired.