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Plan Guaranteed* Lifelong Income for your 2nd innings
Plan Guaranteed* Lifelong Income for your 2nd innings
Retirement and pension plans help you accumulate funds to secure your golden years post-retirement. After all, your retirement years are a new phase of your life and we at Tata AIA want you to make the best of it. Read on to retire like a boss with Tata AIA’s pension plans!
Retirement or pension plans are retirement investment plans that help you create a financial fund for your retirement years. They aim to provide you with the stability of a monthly salary by offering regular payments or a lumpsum amount when you retire and need to support your family and your goals.
A Non-Linked, Non-Participating, Annuity Plan (UIN: 110N161V10) | *T&C apply
Tata AIA
A Single Premium Non-Linked, Non-Participating, Individual, Immediate Annuity Plan (UIN: 110N159V09) | 3T&C apply
A, Non-Linked Non-Participating, Individual Annuity Plan (UIN: 110N150V08) | *T&C apply
Table of Contents
Most retirement pension plans are annuity plans, they convert your invested retirement savings into a monthly income for your post-retirement years. These plans ensure your income flow does not stop even after you retire.
Pension plans will either have a built-in annuity feature or require you to invest in an annuity plan on maturity to start your pension. This is usually true if you have invested in a PPF, EPF ULIP or NPS scheme. Most pension policies also have a lock-in period and will prohibit withdrawals during their accumulation phase.
Inflation rates have caused living expenses to rise dramatically over the years. This means you need to account for future living expenses while accumulating a large enough savings fund to tide you over your retirement years.
Here are some reasons why a retirement pension plan could be the perfect solution to living a stress-free lifestyle in your golden years:
Retirement pension plans in India comprise two main phases: Accumulation and Distribution
This phase begins once the policy term commences. Here, you must make regular premium payments or a lump sum payment, which will be invested into a fund for a set period - usually the policy's term. With Tata AIA pension plans, the payments can be a one-time lump sum payment or regular/limited payments equal to the policy term. These are paid to your account to accumulate interest over time.
Also known as the vesting phase. This phase commences once your policy matures. You have two choices when you reach this phase: Start receiving your pension payouts or withdraw your earnings and buy an annuity plan.
The annuity plan must be bought from the same insurer you bought your pension policy from. Moreover, the minimum vesting age in India is 30 - 40 years, while the maximum vesting age is 80 years. As a policyholder, you can choose any appropriate vesting age between the minimum age and higher limit to start getting the benefits.
Some of Tata AIA's pension plans also allow you to increase your annuity through top-up premiums. Namely the Tata AIA Fortune Guarantee Pension.
Let us take a closer look at the types of pension plans in India:
Pension With Insurance Cover
These are pension plans that come with a life insurance cover. The insured retiree is guaranteed a pension income for the entirety of their lives post-retirement, and upon death, their family members get a death benefit payout.
Pension Without Insurance Cover
These pension plans do not offer a death benefit on the insured retiree's passing but will provide a pension income for their lifespan.
Deferred Annuity Plans
You can accumulate a corpus through single or regular premiums. Under this plan, you will start receiving annuity with or without return of premium.
Immediate Annuity Plans
You can start receiving your regular pension income immediately after making your lump sum investment under this annuity plan. This type of plan can be paired with retirement plans that offer a lump sum benefit on maturity, like the NPS scheme.
Guaranteed Period Annuity
These plans offer annuity payments for a guaranteed fixed term – usually for 5, 10, 15 or 20 years, regardless of whether the insured retiree survives the policy term. If the insured retiree dies during the guaranteed term, the remaining payments will be paid to their policy nominee or family members as regular payments or a lump sum..
Life Annuity
As the name suggests, it provides annuity payment to the insured retiree for the entirety of their life span. If you choose the 'With Spouse' option under this pension plan, the annuity amount will be transferred to your spouse upon death.
Whole Life ULIPs
The money stays invested for the insured's whole life into assets/funds they chose, i.e., debt or equity-linked plans. These plans offer a death benefit, a maturity benefit, and a survival benefit if the insured retiree lives beyond a certain age limit.
Defined Benefit
This is usually an employer-based pension plan that guarantees a specific amount as your pension income for the entirety of your life after retirement.
In the event of your passing, your family gets a lump sum. This amount is a multiple of your salary, paid tax-free if you die before your 75th birthday. Otherwise (death after 75 years), it is taxed as income. Some plans may also pay a refund of the premiums paid if the insured person dies before they begin to get their pension payments.
Tata AIA offers immediate and deferred annuity plans. You can make Single or regular payments under the policy and upon retirement, the annuity plan will offer annuity amount as per the mode chosen.
These are low-risk retirement plans that offer guaranteed* returns under three different options – lump sum (endowment), regular income, and whole life income. Since the returns are not market-linked, you get an assured amount on retirement.
Here are some prominent features of retirement pension policies from Tata AIA:
When you invest in a retirement pension plan, you receive a regular income as per the plan of your choice.
For example, in the case of a deferred annuity plan, you begin receiving the fixed, regular income at a later date (post deferment period), while in an immediate annuity, this benefit is paid out soon after you start the investment. A retirement calculator can be a useful tool to help you calculate this amount.
Pension plans in India are eligible for tax4 deductions under applicable tax laws. This specific tax deduction will depend on the type of retirement pension policy you choose.
Most plans offer tax deductions on your annual premium payments, allowing you to reduce your taxable income in the year you make contributions. Under some plans, your investments are tax-exempt, allowing them to grow without immediate tax consequences. Moreover, death benefits received from a pension policy due to the insured person's death are tax-exempt.
The time during which you get the benefits of your pension plan is known as the payment or payout period. If you choose to receive payments between the ages of 65 - 80, the payout period will be 15 years.
In some pension plans in India, you can choose the payout/income period as per the options under the plan. At Tata AIA, you can opt for a Life Annuity under our plans, where you will receive payments for as long as you live.
Tata AIA pension plans allow annuitants to get a loan against their policy. The terms under which you can get avail loans are subject to policy conditions. For example, under a Joint Life option in our Fortune Guarantee Pension Plan, the primary annuitant can take a loan six months from the commencement date. If the primary annuitant dies, it can be availed by the secondary annuitant.
As stated, upon policy maturity, you can opt to withdraw the pension plan benefit or purchase 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.
This is an amount the insurance company will pay you if you ever decide to "surrender" or discontinue your plan before it reaches maturity. In simple terms, you can choose to cash out your pension policy.
This amount will be stated in your policy wording and available only if you have held your pension plan for a minimum number of years. Remember to check your policy terms before purchase to ensure you get properly compensated if you want to discontinue your policy.
Under your retirement pension plan, you will begin receiving guaranteed income benefits from the distribution phase. This means You do not need to worry about any delays in getting a regular income stream once you retire.
In case of your untimely demise, any applicable death benefit under your pension policy will be paid out to your family. In the case of a Joint Life annuity plan, the second annuitant continues to receive the annuity after the death of the first annuitant.
Most pension plans in India offer flexible premium payment modes and terms you can opt for under your policy. This way, you can pay when you can at your desired frequency. Tata AIA pension plans offer Single/Regular/Limited payment modes.
Once you retire, your pension policy steps in to help you afford daily expenses in place of your salary. These pension payouts can be received as a lump or monthly income to ensure your savings last throughout your retirement.
The best retirement plans in India offer several different tax deductions and exemptions depending on the type of pension policy you buy. This means Tata AIA pension plans are also eligible for tax benefits under applicable tax laws.
Though your retirement plan should be able to suffice for all kinds of emergencies, you can still enhance your policy coverage with optional rider benefits. Keep in mind that any additional top-ups or add-on riders will require additional premium payments under your policy.
As a general rule, you should be saving at least 15-20% of your income for retirement. When saving for retirement, you should consider a tentative figure that will account for all essential and emergency expenses for yourself and your family. While this will give you a basic idea of the total amount to be accumulated, here are some points that will give you a better understanding.
When you retire, some expenses will cease, while there may be some new ones. Your daily commute to work will stop, saving you some money; however, a minor health condition may be an added expense. Listing down all of these missing and added expenses can help you know the approximate amount needed for your retirement savings.
Along with a pension plan, if you have other funds like an EPF (Employee Provident Fund) that can provide you with some income, take those into consideration. However, since your pension plan will look after a majority of your basic and emergency expenses, this additional income is meant to help you plan your retirement plan corpus.
Just because you retire does not mean your family has to change their lifestyle to accommodate for the loss of income. Your retirement plan should be able to provide you with the same comfortable lifestyle that you enjoyed on a regular salary. Therefore, invest in your pension plan such that you’re able to provide a comfortable life to your loved ones and yourself.
Your current salary may be enough for your family, but years later, when you retire, the value of your current salary will not be the same. The inflation rate will help you calculate how much income you need to have, over and above your current income, to handle all your post-retirement expenses, any additional costs as well as any financial emergencies. We also recommend diversifying your savings across different options like EPF, PPF, NPS, and mutual funds. However, if you want more concrete estimates, use Tata AIA's retirement planning calculator.
To use the Tata AIA Life Insurance retirement planning calculator, you need to follow the steps given below:
Visit the official Tata AIA Life Insurance website and Select “Calculators”.
Go to the “Retirement Calculator” page and fill in your details correctly.
Submit the details to proceed with the next steps.
You can then select your current age, the expected retirement age, your monthly expenses, expected return on investment and other factors.
After submitting these details, you will be able to know how much funds you need for your retirement savings.
Monthly Expenses Post-Retirement
Inflation-Beating Returns
Cover Medical Emergencies
Assets and Income Sources
Research Your Options
Plan Ahead of Retirement
Assess Your Risk Tolerance
This is the most crucial step in picking a retirement plan. You can set a budget for your retirement plan policy once you have analysed your post-retirement needs and expenses, your family's requirements, and other emergency expenses. After this, you can buy a pension plan that allows you to invest the amount and receive the benefits at your convenience.
Your current income and financial status should be considered. You should be able to comfortably invest and make premium payments under your chosen retirement plan without it disrupting your current financial obligations.
However, pick a retirement corpus sufficient to cover your future expenses and your family's requirements so that you do not end up with inadequate finances once you retire.
If you have additional income from other sources, such as a business or property, you still need a pension plan for your regular expenses.
However, it is important to know that the other income sources attract taxes while your retirement plan premiums will be eligible for tax benefits# under Section 80C of the Income Tax Act.
If you need an immediate income upon investment, an immediate annuity plan can be a good choice.
However, if you are planning in advance, you can choose a deferred annuity plan where you can pay the premiums over the policy term and then receive the benefits during the vesting period.
Once you have set up a budget and evaluated all your income sources and financial obligations, you will now have an estimate of how large you need your retirement corpus to be.
The next step is to browse through our catalogue and see which retirement plans best suit your financial requirements. Ensure you check the investment amount, guaranteed* payouts, other returns and if the plan has any loan facilities.
All of this information will be available on the policy brochure and policy wordings, so remember to check them as well.
Here are some of the important benefits of purchasing a pension plan online:
When you buy a pension plan online, you can easily compare the plans alongside and look through the features, benefits and exclusions of all the plans before you choose a suitable one and purchase it.
The online purchasing process is quick and easy, which means you can get your policy in a matter of minutes. And since there are no overhead costs of an online purchase, you can benefit from discounts when you buy the policy online.
Since the policy document is online, there is no chance of you misplacing the policy like you can lose the hard copy. If you do happen to lose the hard copy, you can easily access the online soft copy or even save it on your device.
Your insurance provider’s customer service can offer you 24/7 support for your feedback and queries when you buy online. You can reach out to them or leave them a query, and they can resolve it in a few minutes for a swifter process.
Buying online means that you do not need to use any papers for your policy document. This not only saves you from a lot of physical clutter but ensures a green and environment-friendly process for everyone.
Before you buy a policy online, the necessary research such as knowing your insurance provider’s claim settlement ratio, reading their reviews and knowing their products can be done quickly and easily online.
This short answer is – Everyone. Anyone who wants to maintain their standard of living and enjoy a steady income once they retire should consider getting a Tata AIA pension plan. Here are some age-wise recommendations:
The earlier you start, the more you save. While your 20s may seem too early to start thinking of retirement, you can easily build up a huge retirement corpus if you start saving now.
A 1market-linked pension plan or deferred annuity plan can be beneficial at this stage of your life as you can afford to take on more risk.
The earlier you start, the more you save. While your 20s may seem too early to start thinking of retirement, you can easily build up a huge retirement corpus if you start saving now.
A 1market-linked pension plan or deferred annuity plan can be beneficial at this stage of your life as you can afford to take on more risk.
For those in their 30s who want to secure their family's financial future, investing in a pension plan can ensure their living expenses are taken care of during retirement. Even if you are unmarried or do not have any dependents planning for retirement in your 30s is still good idea as it allows you to build a larger corpus.
Depending on your investor profile, you can take on any type of retirement pension policy that meets your future requirements and allow you to maintain your current standard of living.
For those in their 30s who want to secure their family's financial future, investing in a pension plan can ensure their living expenses are taken care of during retirement. Even if you are unmarried or do not have any dependents planning for retirement in your 30s is still good idea as it allows you to build a larger corpus.
Depending on your investor profile, you can take on any type of retirement pension policy that meets your future requirements and allow you to maintain your current standard of living.
The best retirement plans in India can be purchased until age 70. At this stage, you will have most likely accomplished your financial goals and not have any significant financial obligations.
Even if your children have achieved financial independence, you can still opt for a pension plan to ensure you leave behind a financial legacy for you family members. You can invest a lump sum into an immediate annuity plan for immediate pension payments or even a deferred annuity plan if you are still an employee. Moreover, look into pension plans that specifically offer death benefits.
The best retirement plans in India can be purchased until age 70. At this stage, you will have most likely accomplished your financial goals and not have any significant financial obligations.
Even if your children have achieved financial independence, you can still opt for a pension plan to ensure you leave behind a financial legacy for you family members. You can invest a lump sum into an immediate annuity plan for immediate pension payments or even a deferred annuity plan if you are still an employee. Moreover, look into pension plans that specifically offer death benefits.
Our experts are happy to help you!
What is the eligibility criteria for buying a pension plan?
You must be at least 18 years old or above to buy a retirement pension plan. Moreover, pension plans also have a maximum entry age of 65 - 75 years. For example, our Fortune Guarantee Pension Plan has a minimum age of 30 years and a maximum age of 70 - 85 years.
What are the different types of government retirement pension plans?
Retirement plans can be broadly divided into private retirement plans (offered by insurers) and government-backed pension plans. Here are some popular government pension plans you can opt for:
Employees’ Pension Scheme (EPS)
National Pension Scheme (NPS)
Public Provident Fund (PPF)
Pradhan Mantri Vay Vandana Yojana (PMVVY)
Senior Citizen Saving Scheme (SCSS)
How to get ₹1 lakh pension per month?
We recommend investing in a retirement pension as early as possible and choosing a plan that offers high interest rates. Some NPS funds have been shown to give nearly 10% - 12% on annualised returns.
This annuity amount is also possible under Tata AIA pension plans based on your investment amount. For more information on this, you can contact us or browse through our policy brochures and check the sample illustrations.
What is the difference between a pension plan and an annuity plan?
An annuity plan is an insurance contract for receiving regular payments after a specified period or immediately upon making a monetary investment on your part. These are usually offered by private insurance companies like Tata AIA.
In contrast, pension plans are usually employer-sponsored retirement plans that offer a fixed benefit paid out as a monthly income or as a lump sum amount on retirement.
For a more in-depth look at their differences, read our blog on the Differences Between Annuity and Pension.
Why is a pension plan important?
A pension plan helps you financially secure yourself and your family during your retirement years when you do not have the support of your monthly salary. It will pay out a 1guaranteed regular income so you can meet your financial needs through a steady source of income.
Can I go for a savings or investment plan as a retirement plan?
Yes, a savings plan can also function as a retirement plan. A retirement plan aims to ensure you are able to support yourself and your family during your retirement years. Hence, the best retirement plans are ones that offer good returns or a steady income regardless of the type plan they are.
Can I choose to get a retirement plan in my 20s?
Yes, in fact, we recommend that you start retirement planning as early as possible. This ensures you are able to build a substantial corpus by the time you retire.
Do note that most pension plans in India have a minimum distribution/vesting age of 40 - 50 years and a maximum age of 85 years. This means you can only get your retirement income benefits after you reach this age under the pension policy.
If you want to reap your investment rewards sooner, we recommend going for a savings or investment plan instead.
Can I stop my retirement plan any time I want?
Yes, there is an option to surrender your retirement plan, where you can get the surrender value of the plan only if you have been investing in it for a specified period under the policy. However, we recommend that you do not surrender your retirement pension plan as it can help you keep yourself and your family financially secure in the absence of a regular salary income.
What are the documents required to buy a pension plan in India?
When you buy a pension plan in India, these are the following documents you will need to have:
Proof of Age: Birth Certificate, Passport, Driving License, Voter ID Card or High School Certificate.
Proof of Address: Aadhar Card, Ration Card, Electricity Bill, Passport, Driving License or Telephone Bill.
Proof of Identity: Aadhar Card, Passport, Driving License, PAN Card or Voter ID.
Proof of Income: Bank Statements, Salary Slips or Income Tax Returns.
How much money do I need to retire?
The amount of money you will need during your retirement will depend on your needs, your family’s needs, all major and minor expenses and any potential medical emergencies. Be sure to factor in the inflation rate as well to get an accurate estimate. To make to calculation easier, we recommend using Tata AIA’s retirement planning calculator.
Does a retirement plan also offer life insurance coverage?
This will depend on your chosen insurance provider. All Tata AIA pension plans offer life insurance coverage so that along with securing your retirement years, you can also safeguard your family’s future.
Do retirement savings plans have tax# benefits?
Yes, the premiums you pay towards your retirement savings plan are eligible for tax deductions under Section 80C of the Income Tax Act. However, the payouts you receive do not carry tax benefits.
Can I increase the benefits of my retirement plan?
Yes, you can avail the benefits of Large Premium Boost on your Tata AIA Life Insurance retirement plan if you choose to pay higher premiums for more monthly income.
What is the difference between commuted and un-commuted pensions?
Commuted and un-commuted pensions refer to the taxability# of the income you receive as a pension from your pension policy.
Commuted pensions are fully exempt for government employees and members of Defence forces and partially exempt for non-government employees.
An un-commuted pension refers to periodic payments received by the insured person. These are regular payments you receive under your pension policy or annuity plan. This is fully taxable as income under corresponding tax slab rates.
For pensions received under insurers like Tata AIA, the commuted portion of the pension (received as a lump sum) is tax-free, while the remaining amount is taxable as per your income tax slab rate.
How are commuted pensions for non-government employees taxed?
Commuted pensions for non-government employees are partially tax-exempt depending on whether they receive gratuity:
If Gratuity is Received with Their Pension: 1/3rd of the commuted pension amount is tax-exempt, and the remaining is taxed as salary/income.
If the Pension Is Received with No Gratuity: 1/2 of the commuted pension amount is tax-exempt, and the remaining is taxed as salary/income.
With a retirement plan, you can opt to receive the annuity immediately or at a later date under deferred annuity monthly, or at a frequency of your choice.
Depending on how much funds you need during your retirement years, you can choose the minimum premium specified under a chosen policy or go for a higher limit that is usually flexible.
Feel free to check out some of Tata AIA’s pension plans, as we offer some the best retirement plans with affordable premiums and good returns.
Is there a return on purchase price on a pension plan?
Yes, some Tata AIA Life Insurance retirement plans offer a return on the purchase price. Please check your chosen policy’s product brochure for more details.
What are the various premium payment modes under retirement/pension plans?
Under a retirement/pension plan, you can pay your premiums on a monthly, quarterly, half-yearly or annual basis. You can also opt for a single premium payment plan.
For how long do I need to pay my premiums for my retirement pension plan?
You need to pay the premiums for your retirement pension plan as per the premium payment term chosen by you. You can opt for a Single Pay plan and invest a lump sum in your retirement plan. Alternatively, you can choose to pay premiums over a period of time based on your budget.
Yes, in the event of the policyholder’s death, the nominee can file a death claim under a retirement pension plan. Once the claim has been settled, the nominee will receive the benefits of the pension plan. In the case of a Joint Life policy, one annuitant gets the benefits in case of the other annuitant’s death.
In the event of the policyholder’s death, the two main documents you will need are their death certificate and the filled and signed claims form under the retirement pension plan. Please click here to know the list of documents needed for the claim intimation and settlement process.
We also advise that you thoroughly check if the retirement pension plan offers any death benefits before filing a claim. These terms can be found in the policy’s brochure and policy wordings.
As a nominee, you can file a claim after the policyholder’s death and contact us through any of the given channels:
Email us at: customercare@tataaia.com
Call our helpline number - 1860-266-9966 (local charges apply)
Walk into any of the Tata AIA Life Insurance Company branch offices
Write directly to us at:
The Claims Department,
Tata AIA Life Insurance Company Limited
B- Wing, 9th Floor,
I-Think Techno Campus,
Behind TCS, Pokhran Road No.2,
Close to Eastern Express Highway,
Thane (West) 400 607.
IRDA Regn. No. 110
Typically, it takes 30 days to settle a claim effectively, as per the regulatory TAT (turn-around time). However, in case there is any further investigation required into the claim, the process will take up to 90 days, as per the regulatory TAT.
If you want to file a claim as the nominee from outside India, please upload the attested copies of your documents online or send them to us by email. To file the claim offline, you may send the documents to your representative in India and they can visit us at any of our offices to file the claim.
The complete name of Tata AIA Fortune Guarantee Pension is Tata AIA Life Insurance Fortune Guarantee Pension (UIN:110N161V10) - A Non-Linked Non-Participating Individual Life Insurance Plan. Multiple options are available in this plan: Immediate Life Annuity, Immediate Life Annuity with Return of Purchase Price, Deferred Life Annuity (GA-I) and with Return of Purchase Price, Deferred Life Annuity (GA-II) and with Return of Purchase Price.
The complete name of Tata AIA Saral Pension is Tata AIA Life Insurance Saral Pension (UIN: 110N159V09) - A Single Premium, Non-Linked, Non-Participating, Individual, Immediate Annuity Plan
*The word Guaranteed and Guarantee means the annuity payout is fixed at inception of the policy and will be payable for whole of life or till death of the Annuitant(s).
~Allowed only where the product is bought through Tata AIA Life Insurance company website without any intermediary being involved and as per preference of the prospect. The benefit for Single Pay shall be 2% and for Limited/Regular pay policies shall be 3% additional annuity respectively.
1Guaranteed Additions accrue at the end of each completed policy year, subject to all due premiums being paid and form a part of the Death Benefit offered under the option.
2Illustrated annuity rate is for joint life where one of the annuitants is 60 years of age while the other is above 69 years and purchase price is 25 Lakh and above for plan type - Joint Life Last Survivor Annuity with Return of 100% of Purchase Price (ROP) on death of the last survivor.
3The word Guaranteed, and Guarantee means the annuity payout is fixed at inception of the policy and will be payable for whole of life or till death of the Annuitant(s).
4Income Tax benefits would be available as per the prevailing income tax laws, subject to fulfillment of conditions stipulated therein. Income Tax laws are subject to change from time to time. Tata AIA Life Insurance Company Ltd. does not assume responsibility on tax implication mentioned anywhere in this document. Please consult your own tax consultant to know the tax benefits available to you
For more details on risk factors, terms, and conditions, please read the sales brochure carefully before concluding a sale.
Insurance cover is available under the products.
&Applicable for specific plan options. Please refer brochure for additional details
Please know the associated risks and the applicable charges, from your insurance agent or the Intermediary or policy document issued by the insurance company.
Risk cover commences along with policy commencement for all lives, including minor lives.
Buying a Life Insurance Policy is a long-term commitment. An early termination of the Policy usually involves high costs, and the Surrender Value payable may be less than the all the Premiums Paid.
In case of non-standard lives and on submission of non-standard age proof, extra premiums will be charged as per our underwriting guidelines.
Insurance cover is available under the product.
The products are underwritten by Tata AIA Life Insurance Company Ltd.
The plans are not a guaranteed issuance plan and it will be subject to Company’s underwriting and acceptance.
L&C/Advt/2024/Nov/3709
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