What is the need for a retirement plan?

A retirement plan helps you secure yourself and your family financially during your retirement years when you do not have the support of your monthly regular salary. The pension plan will pay out a guaranteed regular income so that you can meet your financial needs through a steady source of income.

What are the different types of retirement plans?

You can opt for a government pension plan such as the National Pension Scheme. However, if you want to ensure complete financial protection, you can go for Tata AIA Life Insurance retirement plans which also offer life insurance coverage along with a retirement investment plan.

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 ⦁ High School Certificate Proof of Address ⦁ Aadhar Card ⦁ Ration Card ⦁ Electricity Bill ⦁ Passport ⦁ Driving License ⦁ Telephone Bill Proof of Identity ⦁ Aadhar Card ⦁ Passport ⦁ Driving License ⦁ PAN Card ⦁ Voter ID ⦁ Proof of Income ⦁ Bank Statements ⦁ Salary Slips ⦁ Income Tax Returns

Can I increase the coverage of my retirement plan?

Yes, you can opt for the Large Premium Boost on your Tata AIA Life Insurance retirement plan if you choose to pay higher premiums for more monthly income.

What are the minimum and maximum premiums I can pay for these plans?

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.

Is there a return of purchase price on a pension plan?

Yes, some Tata AIA Life Insurance retirement plans offer a return of the purchase price if you pay the premium through the Single Pay mode.

For how long do I need to pay my premiums for my retirement plan?

You need to pay the premiums for your retirement pension plan as per the premium payment term chosen by you. Or you can opt for a Single Pay plan and invest a lump sum in your retirement plan. Once the premium payment term is over, you start receiving the guaranteed monthly income from the policy during your retirement.

What are the documents needed to file a claim?

Please click here to know the list of documents needed for the claim intimation and settlement process.

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Q: Can I go for a savings or investment plan as a retirement plan?

Yes, a savings plan can also function as a retirement plan. The aim of a retirement investment plan or pension plan is to ensure that you are able to receive a steady source of income during your retirement years as a monthly income to sustain yourself and your family.

Q: Can I choose to get a retirement plan in my 20s?

Most people do plan their retirement quite early, and it is alright to get a retirement plan early in life. However, every policy has a minimum age limit which is well above 20 years, and there is also a vesting age. You will be able to receive the regular income benefits only as per the vesting age mentioned in the policy or as chosen by you.

Q: Can I stop my retirement plan any time I want?

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, it is recommended that you do not surrender your retirement plan as it can help you keep yourself and your family financially secure in the absence of a regular salary income.

Q: How much money do I need to retire?

The amount of money you need during your retirement will depend on your needs, your family’s needs, all major and minor expenses, and you will also have to consider any medical emergencies. When you calculate your retirement savings, be sure to factor in the inflation rate as well.

Q: 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.

Q: Does a retirement plan also offer life insurance coverage?

Yes, all retirement plans by Tata AIA Life Insurance offer life insurance coverage so that along with securing your retirement years, you can also safeguard your family’s future.

A retirement plan provides long-term financial security by ensuring a steady income after retirement. You can grow your savings with an ... annuity plan and a pension policy. Maintaining a stable lifestyle is easier with the best retirement plan in India, as it covers various expenses, including medical bills, groceries, and emergencies. By choosing the right retirement and pension plans in India, you can ensure financial freedom and peace of mind after you retire.

In this policy, the investment risk in investment portfolio is borne by the policyholder.

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Zero premium allocation charges
Withdraw fund for emergencies²

The linked insurance product do not offer any liquidity during the first five years of the contract. The policy holder will not be able to surrender/withdraw the monies invested in linked insurance products completely or partially till the end of the fifth year.

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What are Retirement/Pension Plans?

The purpose of retirement plans is to provide you with a reliable income stream even after you stop working. There are two general types of pension plans:

Pension Plans:
With pension plans, you can save funds systematically, ensuring a steady income in retirement. In a pension plan, you can make regular payments or pay a lump sum. When you retire, you get regular payouts that help you stay financially independent. The best pension scheme in India also protects you against inflation, so you can live comfortably after you retire.
Annuity Plans:
In an annuity plan, you receive regular income payments for the rest of your life. Annuity plans have a phase called accumulation. During this time, you continue paying the premiums. After you retire, you can buy an annuity with these accumulated funds. With the best annuities, you get regular payments according to your plan's terms, ensuring your financial stability for years to come.

Tata AIA’s Best Selling Retirement Plans

Tata AIA

Smart Pension Secure

New

Key benefits:

Build retirement corpus with top rated funds¹
Zero premium allocation charges
Withdraw fund for emergencies²

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Non-Participating, Unit Linked, Individual Life Insurance Pension Plan
(UIN: 110L182V01)

Tata AIA

Fortune Guarantee Pension

Key Benefits:

Get guaranteed³ regular income post-retirement
Avail loan against the policy
Get tax benefits⁴ as per applicable tax laws

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A Non-Linked, Non-Participating, Annuity Plan
(UIN: 110N161V10) | ³T&C apply

Retirement Planning Calculator

Total amount required for retirement

₹2.98 Crore

Monthly saving to accumulate this amount

₹31,334

What is Retirement Planning Calculator

Retirement calculators are online tools that calculate how much wealth you'll need when you retire. It also helps you plan investments based on your retirement corpus requirements.

In general, it serves two purposes:

It shows you how much funds you will need after retirement to maintain your current lifestyle.
It helps you estimate the returns on your investments and how much you need to invest for retirement.

Why You Should Start a Retirement Plan in India

A retirement plan policy is important in India because of rising inflation, changing family dynamics, and the absence of social security. The following are reasons why you need a retirement plan:

Uncertainty in the Job Market and Early Retirement Trends:

Unexpected layoffs, stress-related health issues and high work stress make Indians consider early retirement. It is important to consider the financial, emotional, and psychological challenges involved in early retirement. If you retire early, you should have a sufficient retirement fund to ensure peace of mind. Depending on your age and financial needs, you should choose the best retirement plan to build an adequate corpus.
Rising Healthcare Costs:

It's expected that healthcare costs will go up in India. Having no employer healthcare after retirement will require funds to cover medical expenses. Despite an individual health insurance covering major expenses, you'll need some funds for long-term care and associated medical costs. Such costs can be covered by a pension or retirement plan.
Rising Life Expectancy:

Life expectancy is expected to increase further in India with improved living and healthcare standards. Having a long-term retirement plan will help you ensure you have sufficient funds to take care of your financial needs after retirement.
Rising Cost of Living:

Inflation gradually increases the cost of goods and services, which means your current savings may not be sufficient in the future. Even as costs rise, you can increase your wealth and keep your level of living by investing in retirement plans. You can avoid financial stress after retirement by planning and making sure you are able to cover both essential and discretionary expenses.
Tax Benefits:

There are tax deductions for retirement plans like Public Provident Funds (PPF), National Pension Systems (NPS), Employee Provident Funds (EPFs), and life insurance plans under Section 80C, Section 80CCD, and Section 10(10D) of the Income Tax Act.
Absence of a Universal Social Security Scheme:

Government-funded pensions are not available to all citizens in India. The majority of citizens need to fund their post-retirement life through personal savings, employer-sponsored plans, or retirement plans.

Starting a retirement plan helps secure your retirement years, mitigating the impact of rising costs and offers financial independence.

Importance of Retirement Plan in India

Inflation rates have increased the living expenses dramatically over the years. This means you need to account for future living expenses and accumulate a significant amount of savings to sustain yourself over your retirement years.

Here are some reasons why a retirement pension plan could be the reliable solution to living a stress-free lifestyle in your post-retirement years:

It is a disciplined, affordable, and secure method of retirement planning that can be started at any time.
You are offered a guaranteed³ income after retirement to cater to your financial needs.
You can secure your family members in the form of a death benefit along with your retirement savings.
You can choose between investing in a market-linked pension plan or a conventional pension plan, depending on your investor profile.

How Does a Retirement Plan Work?

Pension plans in India are designed to help you accumulate savings during your working years, ensuring a steady income after retirement. These plans generally have two key phases:

Accumulation Phase

In this phase, you make regular premiums towards the pension plan. Over time, these investments grow through compounding, helping you build a retirement corpus. 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.
Distribution Phase

Once you reach the predetermined retirement age (commonly 60 years), known as the vesting age, you start receiving regular pension payments in the form of an annuity from the accumulated corpus. 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 the 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’s understand both phases with the help of an example:

Accumulation Phase

Let’s say

You are 30 years old.
You purchase a Pension Plan.
You invest 5,000 every month for the next 30 years (till age 60).
These regular contributions grow over time through compounding.
By age 60, your accumulated corpus becomes, say, ₹40 lakhs

Vesting Phase

At the age of 60 (vesting age), your pension plan matures.
You withdraw a part of the corpus as per policy rules (many plans allow a 1/3rd withdrawal).
The remaining amount is used to buy an Annuity Plan.
You start receiving a monthly pension, for example, ₹25,000, for the rest of your life.

Tata AIA Life Insurance Retirement Plans

Tata AIA
Smart Pension Secure

TATA AIA
Fortune Guarantee
Pension

Tata AIA
Fortune Guarantee Retirement Ready

Tata AIA
Saral Pension

Tata AIA
Smart Annuity Plan

Types of Pension Plans

Pension Plan	Description
Deferred Annuity	In this plan the pension starts after the completion of the policy term.
Immediate Annuity	Under this plan, the pension starts immediately after a lump-sum amount is paid to the insurance company.
Life Annuity	The policyholder receives regular pension payments throughout their lifetime. If chosen Joint life, the spouse continues to receive the pension after the policyholder's death.
Unit Linked Pension Plans (ULPP)	These are market-linked pension plans some portion of the premium is invested in various market to generate returns.
Guaranteed Period Annuity	This plan provides pension payments for a fixed period, such as 5, 10, 15, or 20 years, regardless of whether the policyholder survives the entire period or not.
Annuity Certain	The policyholder receives pension payments for a specific number of years. If the policyholder passes away during this period, the remaining amount is paid to the nominee.
Public Provident Fund (PPF)	PPF is a government-backed long-term savings scheme that offers fixed returns, tax benefits, and a lock-in period of 15 years.
Employee Provident Fund (EPF) & EPS	EPF offers retirement savings with fixed returns through contributions from both the employee and employer. EPS provides a fixed monthly pension after retirement.
National Pension Scheme (NPS)	NPS is a government-backed pension scheme where contributions are invested in equity and debt funds.
Pension Funds	These long-term retirement plans are regulated by the Pension Fund Regulatory and Development Authority (PFRDA) and allow partial withdrawals during emergencies.
Whole Life ULIPs	This plan keeps money invested throughout the policyholder’s life. Partial tax-free withdrawals are allowed after retirement to meet financial needs.
Defined Benefit Plans	These plans guarantee a fixed retirement income, calculated based on the employee’s salary and years of service.
Defined Contribution Plans	In this plan, the employee and employer contribute a fixed amount. The final retirement amount depends on the contributions made and the investment returns earned.

Here is the detailed explanation of each plan:

Deferred Annuity

A Deferred Annuity plan allows individuals to build a retirement corpus over time, by making regular or lump-sum premium payments. The pension or annuity starts only after the completion of the policy term. This plan is suitable for those who want to accumulate savings over the long term and start receiving regular income after retirement.

Immediate Annuity

With an Immediate Annuity plan, the policyholder receives pension payments immediately after paying a lump-sum amount to the insurance company. This plan is suitable for individuals who have a retirement corpus ready and want to start receiving regular income without any waiting period.

Life Annuity

Under a Life Annuity plan, the policyholder receives pension payments regularly for as long as they live. If the policyholder opts for the 'with spouse' option, the pension continues to be paid to the spouse after the policyholder's death, ensuring financial security for both.

Guaranteed Period Annuity

This plan provides pension payments for a fixed period such as 5, 10, 15, or 20 years. These payments are made irrespective of whether the policyholder survives for the entire period. If the policyholder passes away during the guaranteed period, the payments continue to the nominee or beneficiary.

Annuity Certain

An Annuity Certain plan allows the policyholder to choose a specific period during which pension payments will be made. If the policyholder passes away before the completion of this period, the remaining payments are given to the nominee, ensuring the family’s financial stability.

Public Provident Fund (PPF)

PPF is a government-backed savings scheme that offers fixed returns with complete tax benefits. It comes with a lock-in period of 15 years, making it suitable for long-term savings and retirement planning. PPF provides secure, tax-efficient growth for individuals seeking low-risk investment options.

Employee Provident Fund (EPF) & Employees' Pension Scheme (EPS)

EPF is a retirement savings scheme where both the employee and employer contribute a fixed percentage of the employee's salary. EPF offers fixed, government-backed returns. A portion of the EPF contribution goes towards EPS, which provides a fixed monthly pension after retirement. These schemes are compulsory for many salaried employees and help build a stable retirement corpus.

Pension Funds

Pension Funds are long-term investment schemes regulated by the Pension Fund Regulatory and Development Authority (PFRDA). These funds aim to provide better returns upon maturity compared to traditional options. They also allow partial withdrawals during the accumulation stage, which can be useful during financial emergencies.

Whole Life ULIPs

Whole Life ULIPs (Unit Linked Insurance Plans) keep the money invested for the entire life of the insured person. They combine life insurance coverage with market-linked investments. After retirement, partial tax-free withdrawals can be made to meet financial needs, offering flexibility and long-term wealth creation.

Defined Benefit Plans

Defined Benefit Plans guarantee a specific retirement income based on a formula that considers the employee's salary and years of service. The employer is responsible for funding the plan and bears the investment risk. These plans provide stable, predictable income after retirement.

Defined Contribution Plans

In Defined Contribution Plans, both the employee and employer contribute a fixed amount towards the retirement fund. The final retirement amount depends on the total contributions made and the investment returns earned over time. Unlike Defined Benefit Plans, the final pension amount is not fixed, but these plans offer more transparency and flexibility.

National Pension Scheme (NPS)

The NPS is a government-backed pension initiative that invests contributions in a mix of equity and debt funds to generate market-linked returns. At the time of retirement, 60% of the accumulated corpus can be withdrawn, while the remaining 40% must be used to purchase an annuity that provides regular income. It is suitable for individuals seeking a low-cost, long-term retirement option.

Features of Pension Plan

Here are some prominent features of retirement pension policies from Tata AIA:

A Steady Flow of Income

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.
Tax Benefits

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.
Payout Period

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.
Avail Loans

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.
Liquidity in Retirement Plans

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.
Surrender Value

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.

Benefits of Retirement Plan

Guaranteed^* Returns Benefit

Under your retirement pension plan, you will begin receiving guaranteed³ 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.
Financial Security for Your Family

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.
Flexible Premium Payment Terms

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.
Creation of a Stream of Regular Income

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.
Get Tax Benefits

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 tax⁴ benefits under applicable tax laws.
Customise your Retirement Plan

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.

Comparison of Tata AIA Retirement Plans

Below is a comparative overview of the Tata AIA Fortune Guarantee Pension Plan and the Tata AIA Smart Pension Secure Plan:

Parameter	Tata AIA Fortune Guarantee Pension Plan	Tata AIA Smart Pension Secure Plan
Premium Mode	Single premium and limited/regular premium options	Regular premium payment only
Annuity Type	Immediate and Deferred annuity options available	Deferred pension plan (benefits at vesting/maturity)
Features	Multiple annuity options: Single or Joint Life Return of Purchase Price (ROP) on death Increasing annuity options	Offers: Loyalty Additions Maturity Boosters Waiver of Premium Optional rider for outpatient medical expenses
Returns	Guaranteed annuity payouts for life	Market-linked returns via unit-linked funds (ULIP-based)
Tax Benefits	Eligible for tax benefits under Section 80CCC/80C and 10(10A), as per prevailing laws	Eligible for tax benefits under Section 80C and 10(10D), as per prevailing laws

How Much Do I Need to Save for Retirement?

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.

Evaluate All expenses

When you retire, some expenses will cease, while there may be some new ones. Your daily travel to the workplace 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.
Income from All Sources

Along with a pension plan, if you have other funds like an Employee Provident Fund (EPF) that can provide you with some income, consider them. However, since your pension plan will cover a majority of your basic and emergency expenses, this additional income is meant to help you plan your retirement corpus.
Think About Your Lifestyle

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.
Consider the Future Value of Your Income

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.

Who Should Invest in a Retirement Pension Plan?

Anyone who wants to maintain their standard of living and enjoy a steady income once they retire should can consider getting a Tata AIA pension plan. Here are some:

People in Their 20s

The earlier you start saving, the more you will save. It may seem too soon to start thinking about retirement in your 20s, but if you start saving now, you can easily build a large retirement fund.

People in Their 30s

If you are in your 30s and want to ensure your family's financial future, investing in a pension plan can help. In your 30s, planning for retirement is still a good idea, even if you are single or have no dependents.
Your investment profile will determine which retirement pension policy suits your future needs while maintaining your current standard of living.

People in Their 40s

People usually start thinking about retirement when they are in their 40s. There are also a few major expenses or financial obligations that need to be considered at this stage. Consider getting a pension plan that offers a guaranteed benefit or invests in less risky assets.

People in Their 50s or Older

It is possible to purchase the best retirement plans in India until the age of 70. By this stage, you are likely to have accomplished your financial goals and have no significant financial obligations.

If your children are financially independent, you can still opt for a pension plan to ensure they leave you a financial legacy. If you are still employed, you can invest a lump sum into a deferred annuity plan for immediate pension payments. Additionally, look into pension plans that offer death benefits.

How to Use a 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.

Calculate Your Retirement Premium

Plan your retirement fund and find out how you can secure the financial needs of your loved ones!

Factors to Consider While Buying a Pension Plan

01

Monthly Expenses Post-Retirement

Consider all your essential monthly expenses that must be taken care of in the future once you retire. The regular income benefits of your retirement pension plan should be enough to cover these expenses for years.
02

Inflation-Beating Returns

Going forward, the inflation rate will lead to an increase in the prices of commodities. The funds that suffice today will be inadequate when you retire. Therefore, carefully plan your retirement fund accordingly.
03

Cover Medical Emergencies

Though a retirement plan may be enough for your regular expenses, it is better to be prepared for some emergencies too. In old age, sickness can be an issue, and so, your retirement fund should be able to protect these medical expenses.
04

Assets and Income Sources

If you have certain assets or income sources, such as a home on rent, then this becomes an extra income. However, there are also additional costs such as property maintenance, etc. Consider this when you buy a pension plan.
05

Research Your Options

All pension plans are not made the same so when you buy one, check if it suits your needs look into how long you need financial coverage for. The total guaranteed income offered on the plan is a crucial point to note down.
06

Plan Ahead of Retirement

Your retirement planning should start years before you retire so that you are able to accumulate enough finances for a secure retired life. Keep a gap of about 10-20 years between your earning and retirement stages to plan properly.
07

Assess Your Risk Tolerance

Pension plans in India allow you to opt for ²market-linked policies and conventional pension plans. So, assessing your risk profile is crucial as it can help you decide what type of retirement pension policy you should buy from Tata AIA.

Eligibility Criteria for Retirement Plans

The following are the eligibility criteria for a retirement plan in India:

Entry Age: Generally, pension plans require you to be 18 years old. However, some require you to be 30 years old. There's usually a maximum entry age of 75-80 years.
Premiums: Premiums are the regular amounts paid by the policyholder throughout the policy period. At the end of the tenure, maturity returns are determined by the regular premiums paid.
Vesting Age: A policyholder's vesting age is the age at which they begin receiving their pension, which is typically set at 40 years of age, but can vary depending on the insurer.

Documents Needed for Buying a Pension Plan in India

The following is the list of documents that you need to buy a pension plan in India:

Passport
Voter’s Identity Card issued by the Election Commission of India
Permanent Driving License
Aadhaar Card

Why Buy Pension Plans Online?

Here are some of the important benefits of purchasing a pension plan online:

Compare Plans

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.
Save Time and Money

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.
Security of Policy Document

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.
24x7 Customer Support

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.
Minimum Paperwork

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.
Transparency

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.

Steps to Purchase a Tata AIA Pension Plan

Set a Budget

Plan a budget for your retirement plan after you determine your post-retirement needs, expenses, and family needs. Once you have this amount, you can buy a pension plan that lets you invest it and receive it at your convenience.
Evaluate Your Current Finances

Take into account your income and financial situation. With your chosen retirement plan, you should be able to invest and pay premiums comfortably. Make sure your retirement corpus covers your future expenses and your family's needs so you do not end up with inadequate funds.
Identify Your Income Sources

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 benefits⁴ under Section 80C of the Income Tax Act.
Deferred or Immediate Annuity?

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.
Choose Your Tata AIA Pension Plan

After evaluating all your income sources and liabilities, you can estimate the size of your retirement corpus. Next, browse our catalogue to see which retirement plans best suit your needs. Check investment amount, guaranteed³ payouts, other returns, and loan facilities of the plan. You can find all of this information in the policy brochure and policy wordings.

Types of Retirement Plans Under Tata AIA

Annuity Plans

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.
Guaranteed Returns Retirement Plans

These are low-risk retirement plans that offer guaranteed³ 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.

Why Choose Tata AIA Life Insurance Retirement and Pension Plans?

Guaranteed3 Income Post Retirement

Get assured income post your retirement with customizable plan features

85 Lakh+

Families protected so far⁵

99.13%

Individual Death Claim Settlement Ratio^$ in FY 2023 – 24⁶

Express Claim Settlement

Get your claims settled under 4 hours⁷

500+ Branches

Presence across major cities in India

Pay your Way

Flexibility to choose premium payment mode as per convenience

³T&C apply

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1.What are the eligibility criteria for buying a pension plan?

To buy a pension plan you must be between 18 and 70 years and must be able to pay regular premiums. Moreover, check the vesting age after which you can start receiving the payouts

2.What are the different types of government retirement pension plans?

The different types of government retirement pension plans include Public Provident Fund (PPF), Employee Provident Fund (EPF), Atal Pension Yojana (APS).

3.How to get ₹1 lakh pension per month?

To get ₹1 lakh per month you need to invest a lump sum or regular payments to build sizeable fund corpus through a suitable pension plan.

4.What is the difference between a pension plan and an annuity plan?

A pension plan is an investment or savings scheme for creating a retirement corpus. An annuity, however, is an insurance policy that turns your savings (lump sum or periodic) into regular income.

5.Why is a pension plan important?

Pension or retirement plans provide the dual advantage of growth in investment and protection against insurance, giving you a secure income when you retire.

6.Can I go for a savings or investment plan as a retirement plan?

You can choose a savings plan if you’re focused on capital preservation. You may opt for an investment plan for relatively higher returns to build a larger corpus, but consider market-related risks.

7.Can I choose to get a retirement plan in my 20s?

Yes, if you start in your 20s, you can put away smaller sums of money over a longer term, allowing compound interest to take effect. Starting early provides options, lightens the fiscal burden later, and allows you to adapt your strategy as income and goals change.

8.Can I stop my retirement plan anytime I want?

Yes, you can stop your retirement plan anytime, but doing so may lead to penalty charges, loss of benefits, or reduced maturity value depending on the policy terms.

9.What will happen if I don’t die till my term plan is over?

If you outlive your term plan, no payout is given unless you opted for a Return of Premium (ROP) plan, which refunds the total premiums paid at maturity.

Feature	Immediate Annuity	Deferred Annuity
Payment start	Within 12 months of investment	After a deferment period, it could be years later
Funding method	Lump-sum payment only	Either lump-sum or periodic premiums
Growth potential	No accumulation phase; income based on insurer’s rates	Offers tax-deferred growth during the accumulation phase
Best suited for	Seniors needing immediate, predictable income	Younger savers looking for long-term growth and a later payout

10.How much money do I need to retire?

To retire comfortably, you should aim for a retirement corpus that’s 20–25 times your annual expenses. This ensures financial stability, inflation coverage, and a steady post-retirement income.

1.Does a retirement plan also offer life insurance coverage?

Yes, many retirement or pension plans combine savings with life cover, ensuring that if you pass away before retirement, your family receives a death benefit. Check your plan’s brochure to confirm the coverage amount.

2.Are riders available with pension plans?

Yes, pension plans usually include optional add-ons (riders) like critical illness cover, accidental death benefit, or waiver of premium. These provide added protection but usually entail extra premiums.

3.Do retirement savings plans have tax# benefits

Yes. Pension plan premiums are deductible under Section 80CCC in India up to ₹1.5 lakh annually. Also, regulated plans like NPS have additional deductions under Section 80CCD(1B).

4.Can I increase the benefits of my retirement plan?

Yes, you can enhance your plan by increasing premium payments, opting for riders, or choosing a more aggressive investment mix (e.g. equity funds). Many insurers offer top-up or booster options for this purpose.

5.What is the difference between commuted and uncommuted pensions?

Commuted pension allows obtaining a one-time lump sum (usually up to ⅓ of the corpus), which is often tax-free. Whereas, uncommuted pension provides regular monthly payouts, which are fully taxable under income tax rules.

1.What are the payout options if I buy a retirement plan?

You can typically choose between:

Lump-sum payout: one-time full withdrawal.
Lifetime or fixed-period annuities: guaranteed monthly income for life or a set term.
Systematic withdrawals: flexible periodic payouts until funds run out.

2. Is there a return on the purchase price of a pension plan?

Standard pension plans do not return the purchase price. However, some offer Return of Premium (ROP), which refunds all paid premiums at maturity.

3.What are the various premium payment modes under retirement/pension plans?

You typically get to choose from:

Single lump-sum payment
Limited premium (e.g., pay for 5 or 10 years)
Regular premiums (monthly, quarterly, half-yearly, or annual)

4.Can I change payout mode later?

Yes, you can often switch between payout modes (e.g., lump sum to annuity) during the free-look period before payouts begin. After that, options depend on your policy's terms and insurer approval.

1.Can I file a death claim under a retirement pension plan?

Yes. If the planholder dies before payouts start, the nominee can file a death claim and receive either the corpus or insured sum, depending on policy terms.

2.What documents are needed to file a claim?

Nominee must submit:

Claim form(s)
Original death certificate
Medical/hospital records
Policy document & KYC of the nominee
Bank details

Additional documentation may be required for accidental or unnatural deaths.

3.How can my nominee file an online claim on a retirement plan?

Most insurers let nominees submit claims online via their portal, by uploading scanned KYC, death certificate, claim and hospital forms. Ensure documentation is complete to avoid delays.

4.How many days does it take for a claim to be settled?

The settlement of claims in case of non-investigated deaths typically takes up to 15 days and up to 45 days for investigated claims.

5.How can a retirement savings plan claim be processed if the nominee is not in India?

Nominee abroad must provide:

Embassy‑attested death certificate
Attested KYC & claim forms
Bank details
Additional documents, like an an employer’s letter.

The linked insurance product do not offer any liquidity during the first five years of the contract. The policy holder will not be able to surrender/withdraw the monies invested in linked insurance products completely or partially till the end of the fifth year.
Tata AIA Smart Pension Secure (UIN: 110L182V01) - Non-Participating, Unit Linked, Individual Life Insurance Pension Plan
The complete name of Tata AIA Fortune Guarantee Pension is Tata AIA Life Insurance Fortune Guarantee Pension (UIN:110N161V10) - A Non-Linked, Non-Participating, Annuity 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
Tata AIA Fortune Guarantee Retirement Ready (UIN: 110N175V03) - Individual Non-Linked, Non-Participating, Pension Plan. Multiple options are available in this plan: My Pension, Partner Pension, and Partner Pension Plus.
The complete name of the product is Tata AIA Life Insurance Smart Annuity Plan (UIN: 110N150V08) - A, Non-Linked Non-Participating, Individual Annuity Plan
¹All funds open for new business which have completed 5 years since inception are rated 4 star or 5 star by Morningstar as of December 2024
²Partial withdrawals only available 3 times during the entire policy term and only for reasons specified in IRDA Regulations as amended from time to time
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.
⁵85,76,889 families protected till December ’24.
⁶Individual Death Claim Settlement Ratio is 99.13% for FY 2023 - 24 as per the latest annual audited figures.
⁷Applicable to only non-early claims with more than 3 years of policy duration, non-investigation cases, up to Sum Assured of Rs. 50 lakhs. Applicable for branch walk in. Time limit to submit claim to Tata AIA Life Insurance is 2 pm on working days. Subject to submission of complete documents. Not applicable for ULIP policies and open title claims.
Unit Linked Life Insurance products are different from traditional insurance products and are subject to risk factors. The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns. The underlying Fund’s NAV will be affected by interest rates and the performance of the underlying stocks. The fund is managed by Tata AIA Life Insurance Company Ltd. (hereinafter the Company"). The performance of the managed portfolios and funds is not guaranteed, and the value may increase or decrease in accordance with the future experience of the managed portfolios and funds. Past performance is not indicative of future performance. Returns are calculated on an absolute basis for a period of less than (or equal to) a year, with reinvestment of dividends (if any). All investments made by the Company are subject to market risks. The Company does not guarantee any assured returns. The investment income and price may go down as well as up depending on several factors influencing the market. Please know the associated risks and the applicable charges, from your insurance agent or the Intermediary or policy document issued by the insurance company.
Goods and Services Tax and cesses, if any will be charged extra by redemption of units, as per applicable rates. Tax laws are subject to amendments from time to time. Income Tax benefits would be available as per the prevailing income tax laws, subject to fulfilment of conditions stipulated therein. Tata AIA Life Insurance Company Ltd. does not assume responsibility on tax implications mentioned anywhere on this site. Please consult your own tax consultant to know the tax benefits available to you.
The products are underwritten by Tata AIA Life Insurance Company Limited. The plans are not guaranteed issuance plans, and it will be subject to Company's underwriting and acceptance. Whilst every care has been taken in the preparation of this content, it is subject to correction and markets may not perform in a similar fashion based on factors influencing the capital and debt markets; hence this advertisement does not individually confer any legal rights or duties. This is not an investment advice, please make your own independent decision after consulting your financial or other professional advisor.
The fund is managed by Tata AIA Life Insurance Company Ltd. (hereinafter the Company).
Tata AIA Life Insurance Company Limited is only the name of the Insurance Company & Tata AIA Smart Pension Secure are only the names of the Unit Linked Life Insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns. This is not an investment advice, please make your own independent decision after consulting your financial or other professional advisor.
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.
Insurance cover is available under the product. For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale.
The products are underwritten by Tata AIA Life Insurance Company Limited.
The plans are not guaranteed issuance plans, and it will be subject to Company's underwriting and acceptance.
L&C/Advt/2025/Jul/2611

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Retirement Planning Tips

For Salaried Individuals

Make your retirement savings a part of your budget.

If you have just started earning, 10% of your income must be allocated to savings. As your income increases, increase your savings to 15%. As you get older, try to get your savings to 35% or more while still comfortably handling your financial obligations.

Since you earn a regular monthly income, this can easily be done by automating your savings. You can also opt for an auto-debit option for your premium payments under Tata AIA pension plans, so your contributions are made on time. Moreover, consider the number of years you plan to work before retiring and your life expectancy. In case you plan to retire early, you need to choose a pension plan that offers a life annuity option and build a substantial enough corpus to last you post-retirement.

For Self-Employed Individuals

If you are a self-employed individual, like a business owner or entrepreneur, you must prioritise your retirement planning more carefully, as a loss of business means a loss of income.

One way to better plan your budget would be to differentiate personal and business expenses.

This can be done using separate bank accounts and purchasing a retirement pension plan with guaranteed³ benefits. This way, you stay financially secure regardless of other external factors.

For Senior Citizens

If you are an older individual, you must first start by figuring out when you are ready to retire. Think about when you are ready to stop working from a mental and financial perspective.

You will also need to take stock of your existing assets and investments and determine how much money you will need to sustain your standard of living once you stop earning a regular income. Moreover, if you haven't already, it may also be time to buy a pension plan. If you are close to retirement age and have a large corpus, we recommend buying and investing a lump sum into an immediate annuity plan.

If you are retiring early, getting a life cover with your retirement pension plans ensures you receive annuities throughout your retirement.

Retirement And Pension Plans

Raho Befikar - Aaj Ho Ya Kal!

What are Retirement/Pension Plans?

Pension Plans:

Annuity Plans:

Tata AIA’s Best Selling Retirement Plans

Smart Pension Secure

Fortune Guarantee Pension

What is Retirement Planning Calculator

Why You Should Start a Retirement Plan in India

Uncertainty in the Job Market and Early Retirement Trends:

Rising Healthcare Costs:

Rising Life Expectancy:

Rising Cost of Living:

Tax Benefits:

Absence of a Universal Social Security Scheme:

Importance of Retirement Plan in India

How Does a Retirement Plan Work?

Accumulation Phase

Distribution Phase

Let’s understand both phases with the help of an example:

Accumulation Phase

Vesting Phase

Tata AIA Life Insurance Retirement Plans

Tata AIA Smart Pension Secure

TATA AIA Fortune Guarantee Pension

Tata AIA Fortune Guarantee Retirement Ready

Tata AIA Saral Pension

Tata AIA Smart Annuity Plan

Types of Pension Plans

Here is the detailed explanation of each plan:

Deferred Annuity

Immediate Annuity

Life Annuity

Guaranteed Period Annuity

Annuity Certain

Public Provident Fund (PPF)

Employee Provident Fund (EPF) & Employees' Pension Scheme (EPS)

Pension Funds

Whole Life ULIPs

Defined Benefit Plans

Defined Contribution Plans

National Pension Scheme (NPS)

Features of Pension Plan

A Steady Flow of Income

Tax Benefits

Payout Period

Avail Loans

Liquidity in Retirement Plans

Surrender Value

Benefits of Retirement Plan

Guaranteed* Returns Benefit

Financial Security for Your Family

Flexible Premium Payment Terms

Creation of a Stream of Regular Income

Get Tax Benefits

Customise your Retirement Plan

Comparison of Tata AIA Retirement Plans

How Much Do I Need to Save for Retirement?

Evaluate All expenses

Income from All Sources

Think About Your Lifestyle

Consider the Future Value of Your Income

Who Should Invest in a Retirement Pension Plan?

People in Their 20s

People in Their 30s

People in Their 40s

People in Their 50s or Older

How to Use a Retirement Planning Calculator?

Calculate Your Retirement Premium

Factors to Consider While Buying a Pension Plan

Eligibility Criteria for Retirement Plans

Documents Needed for Buying a Pension Plan in India

Passport

Voter’s Identity Card issued by the Election Commission of India

Permanent Driving License

Aadhaar Card

Why Buy Pension Plans Online?

Compare Plans

Save Time and Money

Tata AIA
Smart Pension Secure

TATA AIA
Fortune Guarantee
Pension

Tata AIA
Fortune Guarantee Retirement Ready

Tata AIA
Saral Pension

Tata AIA
Smart Annuity Plan

Guaranteed^* Returns Benefit