When a person is young, i.e., in their 20s or 30s, he or she is probably the most energetic and passionate. They can work hard and work for a long stretch during this period. As a result, they also tend to earn more and become more successful.

However, as one approaches retirement, their reflexes start to slow down, and working capacity decreases. In India, the official age for retirement from a Government job is 60 years. However, you can even take your retirement at an early age, depending on how well you plan for it.

Retirement is the time when you can finally sit back and enjoy after years of hard work. However, you need to remember that in the absence of a regular income, you may need some sort of financial support to ensure that your post-retirement life does not become a burden.

The best thing that you can do to ensure a stable financial life after your retirement is to invest in an old-age pension plan during your working years. A pension plan can help you accumulate money for your retirement life while you’re working and then, receive a regular stream of income after your retirement. This way, you can secure your as well as your family’s financial future.

Continue reading to understand how you can apply for an old-age pension plan, what is the age pension eligibility, and how you can check your old-age pension online.

What is an Old-Age Pension Plan?

An old-age pension plan is an investment plan that allows you to invest a regular part of your savings in it for your retirement. You can invest in a pension plan for 20 to 30 years during your working life. And then, during your post-retirement life, the money accumulated in it is used to provide you with a regular stream of income (known as Annuity benefits) for you and your spouse.

You will also get returns on your money invested in a pension plan. These returns can be fixed or market-linked, depending upon the type of pension plan chosen by you. To know the total corpus that you’ve accumulated, you can check your old-age pension status anytime during your working years.

National Pension Scheme, or NPS, is the most common old-age pension plan available to Indian citizens. This plan is regulated by the Central Government of India through a Pension Fund Regulatory and Development Authority (PFRDA).

Under this plan, you can invest your money into one of the seven pension funds that are managed by the PFRDA fund managers. These managers usually invest your money in Government bonds, bills, shares of companies, and corporate debentures. Investments made in these funds accumulate and grow over time, depending on the returns earned.

Apart from the National Pension Scheme, there are several other old-age retirement plans in India where you can invest your money for your retirement. These may include Government-based as well as private pension plans, such as Atal Pension Yojana (APS), Pradhan Mantri Vaya Vandana Yojana (PMVVY).

How to Invest in an Old-Age Pension Plan?

You can invest in an old-age pension plan online from the convenience of your home. Here is a step-by-step guide to investing in a pension plan:

1. Visit the website of a bank or an insurance company that allows investment in an old-age pension plan. For example, you can visit the Tata AIA website.
   
   
2. Go to the “Retirement Plans” option on the website. Select the suitable old-age pension plan in which you want to invest your money.
   
   
3. Fill out an online form to open your pension fund account with the PFRDA. You will also need to upload your KYC documents (including your Aadhar card, PAN card, Birth Certificate, etc.).
   
   
4. Choose from the fund options or investment style that is best suited for you. For example, you can choose to manage your retirement portfolio yourself or allow the insurer to do the same.
   
   
5. Submit the duly-filled application form and make the initial contribution towards your old-age pension plan. You can make the payment using any of the available online payment options.
   
   
6. Log in to your account and invest in it at regular intervals to create a corpus for your retirement.
   
   
   

How to Check Your Old-Age Pension Status?

At times, you may feel the curiosity to check your old pension status to know how much money you’ve accumulated till now and what are the returns that you’re getting on them. You can check your old age pension status online by following a few simple steps mentioned below:

1. Go to your state pension’s website or visit the insurer’s website with which you’ve opened your pension account.
   
   
2. Enter your Permanent Retirement Account Number (PRAN) and the Financial Year for which you want an old-age pension check. Your PRAN number will be allotted to you at the time of opening your pension account.
   
   
3. Click on the “Search” button or “View Results”. All details of the old-age pension scheme associated with your PRAN number will be displayed on your screen.
   
   

If you’ve invested in the National Pension Scheme and wish to check your NPS balance, you can do so by visiting the NSDL portal and logging in using your ID and password provided . It allows you to check your total pension corpus and its current valuation based on the fund manager chosen by you.

Conclusion

Planning for your retirement should form a crucial part of your annual financial planning. You must start your retirement planning by investing in a pension plan as soon as you start earning. This way, you will be able to accumulate a large corpus for your retired life and can spend the golden years of your life peacefully.

With Tata AIA life insurance, you can secure your future most conveniently. You can choose the right pension and retirement plans so that you are financially secure in the golden years of life. All the plans are available on our website, and you can choose the one that is right for you.

L&C/Advt/2022/Jul/1574