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Pension Plan

Name: Pension Plans
Brand: Axis Max Life Insurance
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Pension plans are one of the types of life insurance or annuity plans that help you create a corpus for your post-retirement financial needs, like daily expenses, medical bills and living life as per your desired lifestyle. At maturity, you can either get lump sum payments or payments at set intervals, like a pension, depending on your financial needs. Achieve financial freedom after retirement with the best retirement plans in India, offering growth on your investments with life cover. show less ...Read More

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Written bySumit Narula

Investment Writer

Published 19th December 2025

Reviewed byPrateek Pandey

Last Modified 11th February 2026

Investment Expert

Retirement & Pension Plans by Axis Max Life

What are Pension or Retirement Plans?

A retirement plan can be defined as a broad overall financial strategy that an individual adopts to accumulate funds and create a retirement corpus. The purpose of this corpus is to ensure financial security during post-retirement years when regular income from salary or business has stopped. In India, retirement plans are typically offered as a type of life insurance plan with in-built life cover benefits.

Pension plans can be defined as a type of retirement plan that provides regular income to the policyholder after retirement. This fixed monthly income to secure post retirement expenses is often done through a immediate or deferred annuity plan that is purchased at the end of the accumulation phase of the pension plan. In India these plans are often offered by employers through Government-managed schemes or in the form of individual plans.

Retirement plans refer to a relatively broader term that encompasses a wider range of financial instruments and strategies that can provide financial security after retirement. Whereas, pension plans refer to a more specialised group of financial instruments that can provide regular income after retirement.

How Do Pension Plans Work?

The life cycle of a pension plan comprises of 2 key phases. First is the accrual or accumulation phase and the second is the vesting phase. This is what occurs in each phase:

1. Accumulation Phase:

The policyholder makes regular contributions to grow the investment corpus
The insurer invests the contributions into various financial instruments
The investments grow over time by leveraging the power of compounding.

Let’s understand how the accumulation phase of a pension plan works with an example. Suppose a 30 year old individual purchases a pension plan with a premium payment term of 30 years. Assuming monthly premium payment of ₹5,000, the total investment made at the end of 30 years will be ₹18 lakh. Then, assuming a growth rate of 12% p.a. for the investments, the final corpus created will be ₹1.76 crore.

2. Vesting Phase

The corpus created is superannuated and now available for partial withdrawal and purchase of annuities
The accumulated amount less any withdrawals are used to purchase annuities.
Annuities purchased offer fixed returns that can provide regular predictable income.
The pay out from the pension plan starts after the annuity purchase is completed

Let’s understand the vesting phase by continuing with the earlier example. Suppose the final corpus of ₹1.32 crore from earlier undergoes superannuation and you withdraw ₹32 lakh as a lump sum. The remaining ₹1 crore is used to purchase annuities that offer a return of 5% p.a. for the next 30 years. These annuities will provide a pay out of approximately ₹6.2 lakh annually or around Rs. 52,000 monthly during the vesting phase of the pension plan that will last 30 years.

Why Pension Plan is Important in 2026?

None of us can work our entire lifetime and eventually we will have to retire. After retirement, we cannot look forward to receiving a salary or an income from business or profession. This is where a pension plan can help fill the gap by ensuring that we receive a regular pay out that can replace the income we used to receive during our working years.

Some of the key factors that one needs to consider regarding the importance of pension plans in 2025-26 include the below:

Increased life expectancy:

As medical science progresses, we are living longer with life expectancy in India projected to reach 72 years for males and 75.7 years for females by 2030. This means that our post-retirement life will be longer, so traditional savings plans might not suffice. This is why financial instruments like pension plan are becoming more important at present.

Higher Healthcare Costs:

As per current statistics, medical inflation in India has risen by around 10% every year over the past 10 years and this trend is expected to continue. What’s more as we grow older, our medical expenses tend to increase. So, having a pension plan in place along with a suitable health plan is essential so that one can cover healthcare costs that might crop up after retirement.

Increase in Cost of Living:

It is not just medical costs that are on the rise, retail inflation is on the rise too and this will increase your cost of living. Assuming that your monthly expenses are currently ₹1 lakh and an inflation rate of 5% annually, in 20 years’ time your expenses will increase to ₹2.65 lakh. So, adequate savings as well as regular income from pension funds need to be an essential part of retirement planning.
So, during retirement even though your regular income has ceased, your expenses will still be substantial. This realisation is clear from respondents of the Axis Max Life IRIS 5.0 survey of 2025. In the survey, 63% of respondents said they expected their retirement savings to last less than 10 years. Rising inflation leading to higher cost of living can be one of the key contributors regarding why this might occur.

Decrease in Job Security:

Technological advances along with the rise of generative Artificial Intelligence has led many to reconsider how secure their current job is. Older individuals are perhaps more prone to being laid off or face termination as automation in various jobs increases.
In such a situation, one might have to consider taking early retirement, so having a suitably large retirement savings corpus can help one gain adequate financial security. This can only be done with an early start. This thought is echoed by IRIS 5.0 survey respondents where 50% said that retirement planning should start with the first salary itself.

Changing Family Structure:

India’s traditional family structure is changing rapidly. With the rise of nuclear families, future retirees might not be able to depend on their children for financial support. A study conducted by Kantar in 2023 highlighted this fact noting that around 75% of new households that have emerged in the past 14 years were nuclear in nature.
As, a result of this shift, adequate retirement planning including purchasing a suitable pension plan is the need of the hour for achieving financial security during the golden years.

Tax Benefits:

Not only can pension plans help secure your post retirement finances, but also offer various tax benefits. The primary tax benefit of pension plans in 2026 is at the time of investment u/s 80CCC of the Income Tax Act.
Additionally, depending on the type of pension plan chosen, you may also be eligible for tax benefits under additional sections of the Income Tax Act such as Section 80CCD and Section 10(10D). However do keep in mind that a majority of these tax benefits of pension plans are offered only under the old tax regime.

Lack of Social Security Plans:

Unlike many western nations, India currently lacks a robust social security plan for the elderly. So in essence once your income ceases post retirement, you are dependent on your savings, investments and extended family members for financial support. This is why contributing towards a suitable pension plan is essential for providing you the benefit of a stress-free retirement.

Types of Pension and Retirement Plans in India

When it comes to finding the best pension plan in India, you will find a variety of pension schemes. Here are a few of them discussed in detail to help you make a well-informed decision:

1. Deferred Annuity

The deferred annuity pension plan allows the policyholder to build up a corpus by paying single or daily premiums. Thus, they will save a significant sum of money as a pension over the lifetime of the scheme. In addition, through this form of a pension plan, you can also take advantage of some tax advantages.

2. Immediate Annuity

It is a form of annuity that is paid out right away. You deposit a lump sum amount and start receiving annuities immediately as pension. You can choose from a variety of annuity plans and the sum you want to invest.

3. Guaranteed Period Annuity

When it comes to the best pension plan in India, the policyholder will collect the annuity for a set number of years in this form of pension plan. They can select the payment duration which is most convenient for them. In the event of the insured's death, the contributions are made to the nominee of the pension plan.

4. The National Pension Scheme (NPS)

The government of India offers a variety of pension schemes for the retired population, including the National Pension Scheme. When you invest in this pension plan as an employee, you can save at regular intervals in the pension account, which will be paid out when you retire.

5. Atal Pension Yojana (APY)

Atal Pension Yojana is designed to provide a fixed pension to subscribers upon retirement.

Primarily targeted at individuals working in the unorganised sector, APY offers assured monthly pension options of Rs. 1000, Rs. 2000, Rs. 3000, Rs. 4000 or Rs. 5000.

In January 2026, Government of India approved the continuation of the APY scheme till the year 2030-31. During this period, government support for this scheme will continue to increase participation of individuals working in the un-organised sector.

Contributions can be made monthly, quarterly or half-yearly and pension payout starts when the subscriber attains the age of 60 years. The minimum age of entry into this scheme is currently 18 years and entry is allowed to individuals before they attain 40 years of age.

6. Life Annuity

This form of pension plan is active until the policyholder passes away, as the name implies. If their policy has a "with spouse" option, their spouse will be entitled to the pension payout if the insured passes away.

7. Life Insurance in Pension Plans

Life insurance and investment are both included in such pension plans. It ensures that if the policyholder dies, the policyholder's family will receive a lump-sum payout. However, it is important to remember that the insurance payout sum of this form of pension plan might be lower than with a standalone insurance plan.

8. Whole Life ULIPs

Standard pension and retirement plans cover you till the age of 70-80 years, depending on the insurance company. However, Whole Life ULIPs, as the name suggests, cover you for as long as you live (till 99 or 100 years). A Whole Life ULIP does not only provide death benefit, but maturity benefit as well.

9. Defined Benefit

A defined benefit is an employee benefit pension plan sponsored by the employer. The plan is offered to the employee after considering numerous factors such as salary and employment history. The employer often hires an investment manager to manage risks and investment fund.

10. Defined Contribution

A defined contribution-based pension plan is shared between the employer and the employee. Most employers contribute a matching amount to the plan as the employee. This type of plan places some restrictions limited to withdrawal.

11. Pension Plans With/Without Life Cover

The difference between With Cover pension plan and Without Cover pension plan lies in the component of life cover. While a With Cover pension plan comes with a life cover, the Without Cover pension plan does not. However, in the event of the death of the policyholder, the fund value is paid to the policyholder in both the cases.

12. Public Provident Fund (PPF)

PPF is government backed tax-saving investment that offers fixed returns. As it features a lock-in period of 15 years and the returns are completely tax-free, it has historically been a popular investment for achieving long-term financial goals such as retirement. However, you should consider investing in more than one type of investment to reach your planned retirement goals.

13. Employee Pension Scheme (EPS)

Qualified salaried employees contribute a portion of their salary to the Employees’ Provident Fund (EPF) scheme. A relatively small portion of the EPF investments are directed to the Employee Pension Scheme managed by the EPFO. The EPS contributions earn fixed returns and are designed to provide regular pension to the subscribers of the scheme upon retirement. However, the pension income from EPS is restricted and might not be sufficient to cover all your post-retirement expenses.

14. Retirement-Focused Mutual Fund Schemes

Retirement-Focused mutual funds are a type of hybrid mutual funds in India that are also termed as solution-oriented mutual funds. These schemes come with a 5-year lock-in period and invest in both equities such as company stocks as well as debt instruments such as bonds and money market instruments. These schemes are market-linked so these mutual funds do not offer assured returns. While the equity portion of the portfolio of a retirement-focused mutual fund is designed to provide potential high returns in the long-term, the debt portion of the portfolio is designed to provide downside protection during equity market bear runs.

15. Employees Provident Fund (EPF)

Employees Provident Fund is a mandatory deduction that a majority of salaried individuals incur and a portion of this is redirected to the Employees Pension Scheme (EPS). This helps the salaried individuals keep adding to their retirement corpus during their work life with an equivalent contribution being made by the employer. After retirement, the EPS corpus can help provide a regular risk-free monthly income to the individual.

16. Pradhan Mantri Vaya Vandana Yojana (PMVVY)

PMVVY is a government-backed pension plan that can be availed by any senior citizen aged 60 years or older. This pension plan is essentially an immediate annuity plan that provides regular income to the policyholder. The maximum investment allowed under this policy is ₹15 lakh and returns are guaranteed. The pay out from PMVVY can be customised to receive monthly, quarterly, half-yearly or annual income as per the post-retirement financial needs of the policyholder. This plan is designed as a low risk alternative to various market-linked pension plans currently available in India.

17. Senior Citizens Savings Scheme (SCSS)

Senior Citizens Savings Scheme is a popular government-backed small savings scheme that can be availed by resident Indians aged 60 years or older, but may also be availed by . This investment plan offers assured returns to the investor and a maximum of ₹30 lakh can be deposited in this account. The initial maturity period of SCSS account at inception is 5 years with the option to extend in blocks of 3 years subsequently. The investments made into a SCSS account are also eligible for tax benefits under Section 80C, provided the account holder opts for the old tax regime.

18. Pradhan Mantri Shram Yogi Maan-Dhan

This is a government scheme designed to provide pension and financial support in old age to individuals who are part of the unorganised sector. This is designed as a contributory pension scheme where individuals with monthly income of at least ₹15,000 and between 18 to 40 years old are eligible to participate. While the exact amount that will be available under the Shram Yogi Maan-Dhan scheme will vary based on the actual contribution, the scheme is expected to provide a minimum pension of ₹3,000 per month after the individual attains the age of 60 years.

19. Unit Linked Pension Plans (ULPPs)

Unit Linked Pension Plans are a type of pension plan offered by life insurance companies. These pension plans typically invest in market-linked instruments through specialised pension funds. Similar to unit linked insurance plans (ULIPs), a unit linked pension plan offers the dual benefit of life insurance and investment. ULPPs also feature a 5 year lock-in period similar to ULIPs. The key difference lies in how maturity proceeds are treated. While in the case of ULIPs, the maturity amount is paid out to the policyholder on maturity, in the case of ULPPs, the maturity proceeds are used to purchase annuities. These annuities can provide regular income pay outs once the policyholder retires.

Features of Pension Plans

Pension plans have unique features that ensure their suitability for achieving long-term financial needs after retirement. Here are some of the essential characteristics of the best pension plans in India that make them a preferred option for individuals seeking an effective way to save for retirement:

1. Steady Flow of Income

Depending on how you invest in a pension plan, you will get a fixed and steady income after retirement (deferred plan) or directly after investing (immediate plan). This means that when you retire, you will be financially self-sufficient. You can use a retirement calculator to get a rough idea of how much money you will need when you retire and invest in the best pension plan in India.

2. Vesting Age

The age at which a pension plan's participant begins to receive a monthly pension is known as the vesting age. Most pension plans in India have a minimum vesting age of 40 to 50 years and a median vesting age of 70 years. You can choose any age between the minimum and maximum limit for when you want to start earning a monthly pension.

3. Surrender Value

It is recommended that you should not surrender a pension plan before the due date, or you will forfeit all benefits. You will still earn the surrender value of the plan if you still want to surrender it for whatever reason.

The surrender value is only granted after you have invested for the minimum amount of time in the plan. This benefit is typically only available with pension schemes in India that have a life insurance component.

4. Accumulation Period

An investor can pay the premium as a lump sum investment or in monthly instalments with retirement plans in India. Over time, the wealth would grow in tandem, resulting in a sizable sum. For example, if you begin investing at the age of 40 and continue until you reach the age of 60, you would have invested for 20 years. This corpus is where the majority of the pension payments will come from

5. Payment Period

The payment period is when you start receiving your pension post-retirement. For instance, if a pension is received between the ages of 60 and 80, the payout period would be 20 years. When you look for the best pension plans in India, you will find that most plans have a distinct payment and accumulation period. However, some do allow partial or complete withdrawals during the accumulation period.

6. Long-Term Savings

Pension plans are designed as a long-term savings option so that you can maximise the benefits of compounding and reach your retirement corpus goal with relative ease. Having a substantial corpus on hand enables retirees to cater to their financial needs in their golden years, even in the absence of other income.

7. Tax-Benefits

Contributions made towards pension plans are eligible for tax deductions under various sections of the Income Tax Act. Depending on the type of pension plan chosen, these can be Section 80C, 80CCC, and 80CCD under the Income Tax Act, 1961. Currently these tax benefits of pension plans are only available if one has opted for the old tax regime.

8. Nomination Facility

Benefits of pension plans in India are often not restricted to the primary holder. Even close family members such as spouse and dependent children can receive the income benefits offered by the plan. The nomination facility of a pension plan helps the policyholder designate a nominee who will receive the pension benefits in the event of the policyholder's death.

9. Flexibility

The regular income offered by a pension plan can be customised in order to suit the unique needs of the policyholder. Individuals can choose from a range of contribution options, such as monthly, quarterly, bi-annual or annual as per their financial capacity. You can also structure pension payouts as per your needs – lumpsum, lumpsum plus monthly income, increasing monthly income, etc.

10. In-built Life Cover

Pension plans that are offered by life insurance companies in India are provided with in-built life cover benefits. So, if the covered individual dies during the policy term, a lump sum payout will be made to the nominee in the form of death benefit. This lumpsum payout is tax exempt under Section 10(10D) of the Income Tax Act, 1961, irrespective of the tax regime.

Why do I Need to Plan for my Retirement?

After retirement, your regular income stops but your expenses will continue. Retirement planning is essential to maintain your desired lifestyle and meet various financial needs during your golden years. Here are some key reasons why you must engage in retirement planning:

1. Financial Security After Retirement

Retirement results in an end of income from salary, business or profession, but there are still expenses that you need to cover. Retirement planning is essential to achieve financial stability after retirement so that you are able to meet various financial needs.

2. Medical and Emergency Planning

As we grow older, healthcare needs often increase and the risk of medical emergencies also increases. What’s more medical costs in India have historically risen at a faster rate compared to overall inflation. So, a well-crafted retirement planning strategy is essential to help meet rising healthcare costs without having to depend on their family and/or friends for financial support.

3. Financial Independence

With proper planning and by choosing the best retirement plans, you can receive various retirement benefits so that you not have to depend on your children or relatives for financial support in old age. This financial independence can help you live your gold years peacefully on your own terms.

4. Disciplined Savings

By implementing a well-crafted retirement plan you can ensure disciplined savings over the long-term in a diversified portfolio of financial instruments. This way the best retirement plans in India can help ensure that your retirement savings keep pace with inflation by optimising returns.

At the same time diversification of the retirement savings portfolio will help reduce the overall risk to your investments. This way, disciplined, consistent savings can help you build a corpus that can adequately meet the financial needs for your post-retirement years.

5. Planning for a Longer Life

Due to advances in medical science, we are living longer. However, rising life expectancy means that the individual’s post-retirement life will also be longer. Having an appropriate retirement plan in place can help you plan ahead so that you do not end up falling short of cash during your golden years.

Who Should Invest in Pension Plans?

Pension plans are of vital importance for every individual who is planning for a financially secure retirement. Some key types of individuals who should consider investing in a pension plan include the following:

Young Professionals
Young professionals, are often individuals in their 20s and 30s who are just starting out on their professional journey. If one starts investing in a pension plan at this early stage, it will give the policyholder more time to add to their retirement investments. By extending the accumulation phase of the pension plan, the potential benefit from compounding of the pension plan will be maximised. So relatively less effort will be required to reach a substantial corpus.

Salaried Individuals
In India, a majority of salaried individuals retire at the age of 60 years and relatively few have an opportunity to extend their working years beyond this. So, it is imperative that they find ways to ensure a steady stream of income during their golden years after the regular income from salary has stopped. In this case too, it is beneficial to purchase a pension plan early on.

Early purchase of a pension plan for salaried individuals also helps extend the accumulation phase of the pension plan and maximise the benefit of compounding. This can potentially lead to the creation of a substantial pension corpus with minimal effort. This realisation has become apparent with 51% of IRIS 5.0 respondents saying that they believed that retirement should the first financial goal one should attempt to achieve.

Self-Employed Individuals
While self-employed individuals have the opportunity to choose their retirement age as per their need, it is imperative that they too make adequate arrangements for a financially secure retirement. A pension plan offers the benefit of regular post-retirement income to self-employed individuals after they retire. This is especially important considering that self-employed individuals do not have the benefit of receiving a pension once their income from business ends.

Apart from the benefit of ensuring steady regular income post-retirement, pension plans from life insurance companies also offer in-built life cover benefit. This combination of long-term savings and life cover can not only help ensure a financially secure retirement, but also offer financial security to dependents in the case of their untimely demise.

Working Women
In the recent IRIS 5.0 survey, it was observed that working women showed superior retirement preparedness compared to their male counterparts. This is illustrated with women respondents achieving an IRIS score of 49 compared to men who received an IRIS score of 48 in the same survey.

While pension plans can help secure post-retirement finances, other key aspects of retirement planning such as maintaining a healthy lifestyle and ensuring emotional wellbeing are often overlooked. These are the key aspects where women participating in the IRIS 5.0 survey have excelled leading to their higher score. For women too, an early start to retirement planning can help achieve a substantial retirement corpus with relative ease.

Employees Without Pension Benefits
Not all salaried individuals can look forward to receiving a pension from their employers post-retirement. This is especially true of salaried individuals who are employed in the private sector. In such a situation, the individual will be completely dependent on their savings and investments to fund their post-retirement financial needs.

This is quite concerning and the IRIS 5.0 survey also found that 50% of urban respondents felt they will be dependent on their children and family wealth during their golden years. Having a pension plan in place can help alleviate this and provide much needed financial support through regular predictable income once their income from salary has ceased.

Gig Workers
As per the IRIS 5.0 survey, many gig workers in India are inadequately prepared for retirement and their score in the survey was recorded at 47. This is lower than the preparedness of other groups covered in the survey. Moreover, 74% of gig workers covered in the IRIS 5.0 survey also expressed their worry with respect to meeting the basic needs of their family.

Gig workers would especially benefit from exposure to retirement plans and health benefits. So, investing in a pension plan would benefit gig workers by providing much needed financial security once they have retired. What’s more, as part of their overall retirement planning strategy, gig workers should also consider purchasing an adequate health insurance policy to overcome future health emergencies.

Non-Resident Indians (NRIs)
Non-Resident Indians or NRIs typically invest in overseas pension plans in their country of residence during their working years. However, if they plan to return to India post-retirement, withdrawal from such an overseas pension plan may lead to various complications including high tax liability. There is however a much more tax-efficient option – a QROPS-compliant pension plan.

Qualifying Recognised Overseas Pension Scheme or QROPS are a category of pension plans offered by life insurance companies in India. A QROPS compliant pension plan, if purchased by a NRI allows tax-efficient access to their pension corpus held in an overseas pension fund. This can help them ensure a secure retirement if they move back to India in their golden years.

Career Starters (in 20s & 30s)
Starting a retirement plan early in life helps an individual save more through compounding. Additionally, in the 20-30 age group tend to have few financial responsibilities or dependents. So they are potentially better equipped to set aside a larger portion of their income to achieve retirement corpus goals.

Mid-Level Professionals (in 30s & 40s)
The 30s to 40s period often refer to the middle years of one’s professional life. This period should be used to analyse and modify their current retirement savings to determine which investment options need to be continued or changed.

Investing in a suitable retirement plan at this juncture can help boost their retirement corpus. However, the recent IRIS 5.0 survey conducted jointly by Axis Max Life Insurance and Kantar revealed a significant gap. While 43% of respondents felt that planning for retirement should start prior to the age of 35 years, only 37% had achieved even 25% of their retirement savings target.

Close to Retirement Individuals (in 50s)Although people often consider the 50s as too late a time to invest in retirement plans, it is still a possibility. Individuals seeking to save for retirement at this stage need to be careful with their planning and focus on potentially low-risk investments that offer stable returns. Carefully analysing different retirement plans and choosing the best one helps people safeguard financial independence after retirement.

Anyone Seeking Financial Independence and Peace of Mind
Whether you are salaried or self-employed, planning for retirement is essential as no one can or wants to works till the last day of their life. So, ensuring proper retirement planning is essential for ensuring:

Financial independence after retirement
Healthcare needs are met later in life
Maintenance of living standard post-retirement
Adequate ability to combat inflation in the future
Fulfillment of post-retirement financial goals

Benefits of Retirement Plans in 2026

Following are the key benefits of retirement plans in 2026:

Financial stability after retirement

Retirement plans provide a steady source of income after you retire. This helps you ensure financial stability after retirement and cover all the essential expenses like medical expenses, daily lifestyle expenses, etc., without impacting your daily lifestyle.

Power of compounding

As retirement and pension plans are long-term investment options, you will be able to benefit from the compounding and grow your money over time. Thus, it is always recommended to start early so you stay invested for a longer period and achieve higher returns on your investment.

Tax benefits

Many retirement or pension plans also offer tax benefits that you can avail as deductions under Section 80CCC and Section 10(10D). You will also be able to avail of a tax-free lump-sum payment at maturity, helping you save more efficiently compared to regular savings.

Life cover

Pension plans offered by life insurance companies also come with an added life cover benefit. You will be able to grow your wealth over a period of time, but also ensure a safety net for your loved ones with life cover.

Cover against inflation

Retirement plans invest in assets that can grow faster than inflation, helping you beat inflation and hedge against the declining value of money. This will help you preserve your lifestyle and purchasing power in the long run, especially after retirement.

Disciplined long-term investment

A retirement plan is a long-term commitment and thus requires utmost discipline. You will be able to compound your investment so that your money earns returns, and those returns generate further growth over a long period of time.

Source of income for employees with no pension

People working in a private organisation have no pension provision after they retire. So, it becomes critical for them to invest in a retirement plan to ensure financial stability post-retirement and to cover daily and other crucial expenses, including medical and rental costs.

Opportunity to retire early

Today, people want to build an adequate corpus and retire early to enjoy their lives without the daily hustle and to break free from the traditional work-until-retirement model. This is why the Financial Independence Retire Early (FIRE) movement has gained popularity. People who follow FIRE movement start investing early and invest aggressively to retire early as well.

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C.Regular income after retirement

D.Child education

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Benefits of Starting Early

Many of us tend to delay our retirement planning. This is often due to the belief that financial goals that are to be achieved in the near term should take precedence. After all, retirement is decades in the future and we can wait a while before we start saving for retirement. However, this delay can cost your dearly.

To understand how starting early on your retirement journey can be beneficial, consider the different retirement savings strategies taken by two friends - Ram and Shyam.

Ram starts his retirement journey at the young age of 25 years with a monthly investment of ₹10,000. He continues this investment till the age of 60 years i.e. for the next 35 years.

The total investment made by Ram over these 35 years will be ₹42 lakh. Assuming a 10% annual return on his investment, Ram would have a corpus of around ₹3.43 crore at his disposal by the time he retires at the age of 60 years.

Shyam starts his retirement savings journey 10 years later at the age of 35 years. He starts investing ₹20,000 per month and continues till retirement at the age of 60 years, i.e. for the next 25 years.

So, Shyam ends up investing ₹60 lakh by the time he retires. Now, assuming his investments also grow by 10% p.a., his retirement corpus at the age of 60 years would be ₹2.48 crore.

So, the impact of Shyam’s delay is clear – a retirement corpus which is almost ₹1 crore smaller than his friend Ram’s. This occurs even though Shyam invested more than Ram by the time he retired. Due to Ram’s longer investment period, the power of compounding has worked in his favour.

Recent trends have indicated that more individuals are understanding the power of compounding and the cost of delaying retirement savings. This was observed among respondents of the Axis Max Life IRIS 5.0 survey. In the survey, 50% of urban respondents expressed their belief that retirement savings should start from the first pay check itself.

Eligibility Criteria for Pension Plans

There is an age requirement to meet when buying pension plans in India, much like every other investment plan. A pension plan can be purchased for someone who has reached the age of 18. A maximum age limit for purchasing a Pension Plan also exists. Most insurance providers have set the maximum age limit at 65-75 years old.

How to Choose the Best Retirement Plan?

Let's look at some tips you can follow to choose from among the best retirement plans in India:

1. Check Limitations on Investment Amount

You will come across pension plans with varying maximum and minimum investment limits. As a result, it is important to review your budget before investing.

2. Consider Returns

The most important aspect of any investment is the return. As a result, it is important to pick a pension plan only after having a reasonable idea of the potential returns. Furthermore, keep in mind that if the returns are assured, the rate of return may be lower than your expectations. As a result, choose an option that has a good chance of paying off.

3. Liquidity of Investment

Some investment plans have a lock-in duration within which you are unable to withdraw funds at any point. Some insurance providers, on the other hand, have pension plans with some withdrawal flexibility.

4. Look for Added Benefits

Along with the standard pension plan, many insurance companies now sell extra benefits such as life insurance, tax advantages, etc. So, before you make your final decision, consider a pension plan that can provide you with additional benefits which can be helpful in the future.

5. Get a Good Investment Mix

You can also consider retirement plans in India that are a part of a mutual fund for a diverse investment mix. As a result, you can expand your investments depending on your financial profile and risk appetite.

How to Buy Axis Max Life Pension Plan?

You can purchase an Axis Max Life Pension Plan either via the online or the offline route. Below are the key steps for purchasing a pension plan online from the Axis Max Life website.

Step One
Go to the pension plans page on the Axis Max Life website. Fill out the simple online form shown below with key information such as Name, Date of Birth, NRI status, phone number and annual income range. Then click on “Check Returns”.
Step Two
On the subsequent page, a pop-up as shown below will appear. Here please choose applicable details regarding gender and education level. This helps us customise available Axis Max Life pension plans to suit your unique needs. After making your selections, click on “Check Plans”.
Step Three
On the subsequent page, choose the type of savings plan you are looking for. Choose retirement plans to check the pension plans suited to your profile.
Step Four
On this page, as shown below, you can provide various customisations and also check key details of the pension plans on offer. You can choose the investment amount, the frequency of payments – monthly, quarterly, bi-annual, annual, etc. Other customisations available include when you plan to start your payout i.e. retirement age, the choice of funds – market linked/capital guarantee plans, etc. Once you have made your selections, click on “Check Plans”
Step Five
Provide some additional information on the subsequent page, such as, your full name, contact details, residence pincode, etc. then click on “Proceed”. Once this is done, you can make the first premium payment and upload digital copies of any documents required as part of the KYC process.
Step Six
Once documentation is verified, you will receive the policy documents via email as well as paper documents made to the communication address provided by you at the time of purchase. After this, all you need to do is to keep making regular and timely premium payments to keep the policy in effect and avail the benefits of the pension plan.

Axis Max Life QROPS

QROPS (Qualifying Recognised Overseas Pension Scheme) are a special category of pension plans offered by life insurance companies in India to Non-Resident Indians (NRIs). Axis Max Life QROPS offers Non-Resident Indians (NRIs) an opportunity to transfer their UK-based pension contributions to India in a tax-efficient manner.

Some of the key benefits of Axis Max Life QROPS are as follows:

Tax-efficient pension fund transfer from the UK to India
Ensures steady income in India after retirement
Benefit of attractive annuity rates in India

Below are the QROPS-compliant Axis Max Life Pension Plans currently available in India:

What are the Factors to Consider While Buying a Pension Plan in India?

Buying the best pension plan in India requires careful consideration of multiple factors, including the following:

1. Your Retirement Needs and Wants

No two individuals have to same retirement goals. So there are various factors to consider when determining your financial needs after retirement. Some of the key ones are:

Your desired retirement age: This will determine the time period over which you can save to reach your retirement corpus goal i.e. accumulation period.
Estimated monthly expenses after retirement: This will determine how much monthly pension you will need to meet your expenses after your retire.
Financial Needs of Dependents: If you have financial dependents after you retire, your post-retirement needs will have to be adjusted accordingly.
Your Desired Lifestyle after Retirement: Living costs differ by city so, if you retire in a smaller city compared to a Metro city, you can plan your finances accordingly.

2. Comparing Pension Plan Options

There are several pension plans available in India, offered by the government and private entities, such as the National Pension System (NPS), the Employees' Pension Scheme (EPS), Annuity Plans, etc. Hence, it is essential to analyse and compare the features of different plans to choose the most suitable one. Below are some key features to keep in mind regarding these options:

National Pension System: Returns are not guaranteed from this pension plan. However, due to equity allocation you may receive returns that exceed the rate of inflation in the long term.
Employees’ Pension Scheme: This is only available to salaried individuals who have subscribed to the Employees Provident Fund (EPF) scheme. The pension amount is limited as only a portion of EPF contributions are directed towards creating a pension corpus under EPS.
Annuity Plans: These are guaranteed return plans offered by life insurance companies. Immediate annuity plans start making pension payouts immediately after a lump sum payment is made. Deferred annuity plan provide regular pension after a predetermined accumulation period has ended.

3. Investment Options and Your Risk Appetite

The growth of your retirement savings are impacted by multiple factors such as:

Asset Class: Equities have higher growth potential compared to debt, so are better suited to beat inflation in the long term. Typically allocation across multiple asset classes is recommended in order to minimise risk and maximise returns.
Risk Tolerance: An individual needs to factor in their risk tolerance and the required returns to select the asset that best aligns with their long-term financial needs after retirement.
Returns Offered: Some retirement plans such as NPS offer market linked returns, while other like immediate annuity plans and guaranteed pension plans offered assured returns.
As a rule of thumb, higher potential returns often mean higher risk associated with the investment. So striking a balance between risk and returns is vital.
Adjustment for Inflation: Rising inflation eats into the growth of your investments over time. So, one needs to adjust their pension plan in line with the need for inflation-beating returns or assured returns.

4. Tax Benefits

Pension plans tax benefits can be classified into 3 different categories, such as:

Tax Benefits on self-contributions: Pension contribution offer tax deduction benefits under Section 80CCC up to the overall limit of ₹1.5 lakh u/s 80C, if one has opted for the old tax regime.
NPS offers additional deduction of ₹50,000 u/s 80CCD (1B) over and above the Section 80C limit. The new tax regime does not offer this benefit.
Tax Benefits on Employer Contribution: Employer contributions made towards pension schemes are eligible for tax benefits as per Section 80CCD (1) rules. This benefit can be availed irrespective of tax regime if one has opted for Corporate NPS.
Tax Exemption on Life Cover Payout: You get the benefit of in-built life cover, if you opt for a pension plan such as the Axis Max Life Forever Young Pension Plan. The life cover payout received by the plan nominee are tax exempt as per Section 10(10D) of the Income Tax Act, 1961.

5. Flexibility in Contributions and Liquidity Options

Before buying a pension plan in India, an individual must consider the premium payment options, such as monthly, annual, or a one-time lump sum, and withdrawal options. Pension plans that offer benefits such as partial withdrawal can help act as a source of emergency funds. Considering these factors can help choose a plan that aligns with their liquidity and contribution requirements.

6. Charges and Fees

It is essential to review the charges and fees imposed by the retirement plan that is chosen. Higher charges and fees mean your overall returns will be lower. Common charges to consider with respect to pension plans include:

Policy administrative charges – This is for maintaining the policy
Fund management charges – Charged for managing the fund
Premium allocation charges – This is a one-time charge deducted at the time of premium payment
Surrender charges – Administrative charges levied at the time of surrendering the policy
Mortality charges – This is charged in order to provide the benefit of life cover
Fund Switching charges – This is a fee charged in case you are switching your investment from one pension fund to another.Axis Max Life Forever Young Pension Plan offers the benefit of unlimited free fund switching.

7. Rate of Annuity

The rate of annuity refers to the percentage of return an annuity plan provides to an investor after retirement. Hence, an individual must consider the annuity rate to ensure that the selected pension plan meets their financial requirements after retirement.

8. Life Cover and Nomination

The applicant must check whether the selected retirement plan provides life cover benefits. This enables nominees to get a death benefit in case of the policyholder’s unfortunate demise within the policy period, which can help safeguard their financial security.

For instance pension plans from life insurance companies such as Axis Max Life offer life cover benefit so,

9. Forecasting Returns with Online Calculators

Online pension calculators help applicants estimate the required retirement corpus for a specific pension plan. After carefully analysing the returns offered by different pension plans, you must select the one which provides higher returns to match your required lifestyle.

10. Inflation Impact

Inflation significantly impacts pension returns and decreases the purchasing power of savings. At the same time, post-retirement financial requirements will increase, as costs increase over time. Hence, it is essential to account for inflation when choosing a suitable pension plan to meet your future financial obligations.

11. Riders and Additional Benefits

Pension plans offered by life insurance companies may allow the addition of riders. Riders enhance the protection offered by the base plan for an additional charge. Riders offered with pension plans can include critical illness rider, accidental death and disability rider, partner care, etc.

12. Performance History of Funds

Track the historical performance of the fund or funds that you are planning to invest in through your pension plan. It will help you make an informed decision based on potential performance over various time periods and your risk appetite.

13. Rules About Exit and Surrender

Carefully analyse the rules governing exit and surrender of the pension plan. This is required to help ensure that it is suitable for your liquidity requirements. Clear policies regarding exit and surrender can help individuals remain stress-free and help in making an informed choice.

How to Calculate the Return on a Pension Scheme?

If you are planning to purchase a pension plan or trying to compare different pension plans to check which suits your requirement, one of the key aspects to consider is the returns. Below are some of the key factors when you are checking and comparing the returns offered by various pension plans in India.

1. Types of Returns

The first step when considering pension plan returns is to understand the different type of returns that a pension plan may provide. These are broadly classified into 3 key categories:

a. Guaranteed Returns

Pension plan with guaranteed returns are not dependent on market performance. So, they give a fixed regular income to the pensioner. Guaranteed returns plans can be beneficial for conservative individuals seeking stability and fixed payouts from their pension plan.

b. Market-Linked Returns

Some pension plans offer market-linked returns. In such a case returns from the pension plan are not guaranteed and dependent on market performance. On one hand, the potential of returns in this case are higher than guaranteed plans, but the risk involved for the policyholder is also much higher.

c. Bonus or Additional Returns

Some pension plans offer bonuses or additional returns to the policyholder. Insurers usually provide additional returns based on surplus or performance, and these extra returns can help increase the overall returns of the pension plan.

2. Using a Retirement Planning Calculator

A retirement planning calculator is a financial tool designed to help you determine the savings needed to achieve the financial corpus you need achieve at retirement. This free online tool can provide key insight into your retirement savings needs using the below data points:

Current Age

Desired Retirement Age

Life Expectancy

Monthly Income Required in Retirement Years

Expected Inflation Rate

Expected Return on Investment (Pre- and Post-Retirement)

Existing Retirement Fund

The final output provided by a retirement planning calculator includes:

The retirement corpus you will need to secure your post-retirement finances

The monthly savings you need to make in order to achieve the target retirement corpus

Even though, the retirement planning calculator is a powerful tool, you do need to keep in mind that like any tool its results are based on the inputs provided. So, do consider different permutations and combinations when estimating your post-retirement financial needs.

3. Effects of Contribution Amount and Duration

Retirement benefits are directly proportional to the contribution amount and the investment duration. This means that your retirement corpus will be larger if you make higher monthly contributions to the pension plan. Similarly, your pension fund corpus will be larger, if you extend your investment duration and maximise the benefit of compounding.

For example, Priya began her pension at age 25 and contributed ₹2000 per month for the next 40 years, assuming that she will retire at age 65. However, Ramesh began contributing at the age of 35 with a monthly contribution of ₹3000 up to retirement at 65 years of age.

Assuming average annual return of 6% per annum, the amount of the corpus accumulated by Priya would be about ₹46.6 lakh while Ramesh’s will be ₹30.4 lakh.

This means that Priya has created a larger corpus for her retirement even with a lower annual contributions made over a longer term due to the power of compounding.

4. Evaluating Rate of Return

The rate of return is another key factor influencing the benefits of pension plans in India. Higher returns mean that your retirement corpus will grow faster through the benefit of compounding.

For example, an investment of ₹10,000/month over 20 years at a 6% rate of return will yield ₹46 lakhs, while the same investment at a 10% rate of return will yield ₹76 lakhs.

5. Impact of Inflation on Retirement Savings

Inflation negatively impacts retirement savings by decreasing the purchasing power of money and reducing the net returns from pension plans. If the rate of return from the pension fund does not keep pace with inflation, it effectively leads to a lower savings at retirement. This can increase the financial strain on retirees.

For example, if the inflation rate is 5% per year and the pension's annual return is 7%, the real value of the pension decreases to just 2%. This low effective return might make it difficult for retirees to financially secure after they retire.

6. Impact of Taxes on Pension Plan Returns

Increased taxes can reduce your pension returns. What’s more, based on the type of pension you receive, the tax implications will tend to differ. Below are a few key pointers to consider:

1. Commuted Pension

Ths is the portion of the pension corpus that is paid out as a lumpsum at retirement:

a. If you are an employee of a corporation or a local authority created under the Central, State or Provincial Act, your commuted pension is exempt from taxation under Section 10(10A).

b. Non-government employees need to pay a certain part of their commuted pension as tax, as specified under Section 10(10A). Different rules are applicable based on the gratuity receipts by the non-government employee, as mentioned below:

Employees receiving gratuity at retirement along with their commuted pension can avail a tax exemption of up to 1/3 rd of their commuted pension amount.

Employees who do not receive gratuity at the time of retirement can avail a tax exemption equal to ½ of their commuted pension amount.

2. Uncommuted Pension

Uncommuted Pension is offered as a regular income to the retiree over an extended period of time. As per current tax rules, any uncommuted pension received is fully taxable as per the applicable income tax slab and rates.

7. Reviewing Additional Charges and Fees

Retirement plans in India include certain additional charges, such as policy adminstration charges, fund management charges, transfer fees, surrender charges, etc. These charges reduce the overall returns of the pension fund.

Review and compare the charges applicable to different pension plans to choose a policy that features relatively low charges so that your retirement savings can grow at a faster rate.

8. How to Calculate Your Pension’s Future Value

Calculating the pension’s future value depends on several factors, such as current expenses, expected expected after retirement, expected retirement age, current age, expected investment returns, and expected long-term inflation rate.

Using online retirement calculators helps to avoid human errors while calculating the future value of a pension. These calculators provide a quick, efficient estimate of how large a retirement corpus you will need in the future to help you plan your retirement finances more efficiently.

9. Factors Affecting Pension Returns Over Time

Here are the key factors that affect your pension returns:

a. Investment Instruments:

The type of asset, such as stocks, bonds, or money market funds, affects risk and potential returns. Analyse the risk profile and desired returns to choose the best financial instrument for your retirement savings needs.

b. Market Conditions:

Based on the type of pension fund, the returns can be directly impacted by market fluctuations, economic trends, inflation, and interest rates. A guranteed pension plan will not be impacted by changing market conditions.

c. Fund Management:

Experienced fund managers can balance the risk and growth of the pension fund portfolio. This can help enhance the overall size of the retirement corpus of the pension fund.

10. Example of Pension Scheme Calculation

Shalini’s current age is 25, and she would like to contribute ₹3,000 per month to a pension plan with an expected return of 7% for 35 years if she plans to retire at 60. The estimated retirement corpus, as calculated by an online calculator, is around ₹51.63 lakhs.

Now let’s assume she increases her contribution to ₹5,000 per month and everything else remains the same. In this case, her retirement corpus will grow to ₹86.05 lakh.

But what if she contributes the same ₹3,000 per month as earlier but her pension plan procides a return of 10% p.a. over the 35 year investment period? In this case, the corpus size at retirement will be ₹1.02 crore.

The above calculations illustrate how increase in contribution and increase in returns from pension plans can potentially impact your retirement corpus.

How Much do I Need to Save for Retirement?

Planning for retirement is not a task to be taken lightly. You have to consider multiple factors before determining how much money will be sufficient to meet your post retirement financial needs. Below are some key factors that one needs to consider when determining how much you will need to save for your retirement:

1. Current Age and Retirement Age

This is one of the primary things you need to consider when you are planning to estimate how much you will need for retirement. This can help you figure out the time period over which you can accumulate your retirement savings. For instance, if your current age is 30 years and you plan to retire at 60 years, you will have 30 years to reach your retirement savings goal.

2. Estimate Your Expenses

Typically, you current expenses would include fixed expenses and variable expenses. Examples of fixed expenses i.e. expenses that are expected to remain largely unchanged over the foreseeable future can include home loan EMIs or rent, insurance premiums, income tax/property tax, utility bills, etc.

On the other hand, variable expenses are liable to change depending on multiple factors and may include costs related to fuel costs for office commute, dining out, entertainment costs, medical care expenses. Once you have collated all your current expenses, you can start to consider what your post retirement expenses will look like.

3. Consider the Impact of Inflation

On average over the past 10 years, retail inflation has increased by around 5% p.a. and this trend is expected to continue in the future too. This means that your current expenses will increase by a considerable amount even if you plan to maintain the same lifestyle in the future.

For instance, suppose your current expenses are ₹1 lakh monthly. Now, let’s assume you plan to maintain the same lifestyle post retirement, 30 years from today. If we consider that inflation rises by 5% annually during this time, you will need to spend ₹4.32 lakh every month to just maintain your current lifestyle.

4. Life Events & Major Milestones

At any given time, you might find yourself chasing multiple financial goals apart from saving for your retirement. You need to consider how much you would need to achieve the other goals you plan to achieve and how soon these will be reached. Some key milestones and life events you may wish to plan for financially alongside your retirement include purchasing a house, children’s higher education, marriage, etc.

5. Emergency and healthcare expenses

As you grow older, it is quite possible that your healthcare costs will increase. Additionally consider that healthcare costs have historically increased at a higher rate compared to retail inflation. So, unless you plan for an adequate large medical contingency and emergency fund, such expenses might result in a significant dip of your savings.

6. Existing Savings & Additional Source of Income

If you already have some money saved and earmarked for retirement, it can help you reach your retirement corpus target with greater ease. This is because your current savings can be used as investments that have the potential to grow with time so that you can stay on course to reach your retirement goals.

If you have income from multiple sources such as business, agriculture, rental property, etc. these can help you add to your savings. After all, increasing savings is the first crucial step towards ensuring that you are on route to save a sufficiently large corpus to cover your post-retirement financial needs.

7. Rate of Return on Investment

The expected rate of return can play a crucial role in growing your retirement corpus. A higher rate of return can help grow your wealth faster. While a lower rate of return can result in your falling short of your retirement savings goals.

One of the key factors that can impact the expected rate of return of your investment is the choice of investment plan. Some investment options such as Public Provident Fund, National Savings Certificate, Senior Citizens Savings Scheme, etc. offer assured returns so tend to be seen as a low risk option.

On the other hand, market linked investments such as National Pension System, mutual funds, ULIPs, etc. have the potential to provide high long-term returns. But returns from these investment are not guaranteed.

The IRIS 5.0 survey found that 77% of urban respondents believed that a retirement corpus of ₹1 crore would be sufficient for their retirement. This represents a significant underestimation of post-retirement expenses by a large portion of the population. However, at the same time, 50% of urban Indians covered in the survey also expressed that they would have to depend on family wealth or their children for post-retirement financial support.

You can calculate how much you will need to save for your retirement by considering the above mentioned information and factors. However, this can be quite time consuming and there is high probably of making an error in your calculation. An alternative is to use a retirement planning calculator that can help you save time making the calculation by providing accurate results within seconds.

How Much Pension Do You Want Every Month?

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₹50,000

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Retirement Planning Guide for Salaried

Retirement planning is essential for everyone including salaried individuals. So, if you are one, here are a few steps you can follow:

Assess your future financial goals, including all short-term, medium-term, and long-term plans that you want to achieve in the next 5 to 20 years.
Calculate your current income, loans, EMIs, and other expenses. Next, subtract these liabilities from your total assets/investments, which will give you your net worth.
Plan a budget by following the general thumb rule – allocate 50% of your income for needs, 30% for wants, and 20% for savings.
Evaluate how much savings you will require to get by during your retirement years, based on which you can invest in pension plans in India or retirement plans in India.

Based on the above assessment, you can figure out which type of retirement or pension plan would be suitable for you. Some of the popular ones among salaried individuals include Unit Linked Insurance Plans, equity mutual funds, National Pension System, Employee Provident Fund/Voluntary Provident Fund, Annuity Plans, etc. The choice of retirement savings instrument would depend on multiple factors such as the investment period till retirement, the risk appetite of the investor, etc.

Retirement Planning Guide for Self-Employed

There is a common misconception that self-employed people don’t need to plan for retirement or that it isn’t as important as it is for salaried individuals. However, retirement planning and investing in pension schemes & plans is crucial for everyone, regardless of their employment status.

So, here are some tips that self-employed individuals can consider for effective retirement planning:

Identify the financial needs of your family, including yourself. Plus, calculate monthly expenditures, including power bills, groceries, etcetera.
Evaluate your current income and saving pattern so you can figure out how much you need to contribute for a sufficient retirement corpus.
Select a suitable pension plan or retirement plan after assessing any associated risks. Current retirement investment options available to self-employed individuals include the annuity plans offered by life insurance companies, Public Provident Fund, National Pension System (NPS), Atal Pension Yojana, Unit Linked Insurance Plans, etc.
Always consider inflation before choosing a suitable pension plan. Typically fixed return options such as Public Provident Fund and standard annuity plans offer assured returns, but they might be unable to beat inflation in the long term. In view of this an inflation-indexed annuity plan or a market-linked retirement plan such as NPS or ULIP might be a more suitable option when choosing among available investment options.

So, self-employed individuals need to make sure that they consider the pros and cons of available long-term investment options when planning their retirement. This can help one avoid making an investment that is not in line with their requirements for a stress-free retirement.

Retirement Planning Guide for Senior Citizens

It can be difficult to plan for retirement at any age. Even more so if you are already retired and do not have a regular income. However, there are some things you can do when you are in your 60s or older to help you secure your golden years financially:

Organizing your finances is key to begin retirement planning at any age. Since you are likely to live off a fixed budget after retirement, it is crucial to have a regular in place and all financial decisions managed to retain your existing lifestyle.
Post retirement, you have to prioritise the safety of the capital you have invested over potential growth of your investments. So, low risk investment options are preferable even though overall returns might be relatively lower. Some investment options that fit the criteria include immediate annuity plans, Senior Citizens Savings Scheme, capital guarantee plans, potentially low volatility mutual funds like ultra-short duration funds, liquid funds, etc.
While NPS investments can currently be started as long as you aged 65 years or younger, be carefully with the choice of asset allocation in this case.
In order to stay prepared for health emergencies make sure you have adequate funds in low risk liquid assets such as savings account or ultra-short duration/liquid funds. Additionally, you can use your retirement plan benefits as an additional layer of financial security so, that you have adequate financial security post-retirement and are prepared for life’s various uncertainties.

Following the above steps can aid retired individuals secure their retirement years so that they can continue to live the lifestyle they desire without compromising their long-term financial security.

How to Use Retirement Planning Calculator?

A retirement planning calculator is a handy online tool that estimates how much money you will need after retiring. The calculation is done on the basis of your age when you invest in a pension plan, the retirement age, income, inflation rate, expected return on investment and other such parameters.

It supports you in planning your savings so that you can retire with the perfect retirement corpus. In addition, the retirement planning calculator can help you remain secure in the future as it helps estimate the amount required to maintain your current lifestyle.

Here's how you can use it:

Provide basic personal information such as your age.
You must select and your ideal retirement age as well as your life expectancy.
Fill in the appropriate monthly income that you require post-retirement, as well as the projected inflation rate and return on investment.

The retirement planning calculator displays the annual income needed immediately after retirement and the additional retirement funds that must be invested, and the monthly savings necessary to do so.

Difference between Pension Plans, EPF, PPF and APY

Traditionally, popular retirement planning instruments in India have included PPF (Public Provident Fund) and EPF (Employees Provident Fund). The popularity of EPF as a retirement planning tool is evident from a key finding of the recently conducted IRIS 5.0 survey by Axis Max Life and Kantar. In the survey, 69% of respondents cited EPF as one of the retirement investment options that respondents had already subscribed too.

However, in recent years, other options such as pension plans offered by life insurance companies, Atal Pension Yojana and NPS have gained greater acceptance. In fact IRIS 5.0 found that awareness regarding the National Pension System (NPS) had risen to 66% in 2025 versus 59% awareness of NPS recorded in 2024.

Below table compares some of these leading retirement investment options across key criteria:

Comparison Criteria	Pension Plans	EPF (Employees’ Provident Fund) / EPS (Employees’ Pension Scheme)	Public Provident Fund (PPF)	Atal Pension Yojana (APY)
Plan Objective	Long-term retirement savings with pension payout and life cover	Long-term savings with a portion allocated to post-retirement pension	Long-term savings with assured returns	Long-term savings for guaranteed post-retirement pension
Guaranteed Returns	Varies by scheme	Yes, revised quarterly	Yes, revised quarterly	Yes, pension payout is guaranteed
Flexible Contributions	Yes	Yes	Yes	No
Death Benefit	Yes	No	No	No
Annuity Payment Options	Yes	No	No	No
Type of Scheme	Pension + Life Cover	Long-term Savings + Pension	Long-term Savings	Guaranteed Pension Plan
Tax Benefits^*	U/s 80C and 10(10D)	U/s 80C and Section 10	U/s 80C and Section 10	U/s 80C and 80CCD(1B)
Investment Mode	Single Pay, Limited Pay, or Regular Pay	Monthly	Up to 12 contributions annually	Monthly, Quarterly, or Bi-Annual
Maximum Investment Amount	Varies by plan	As per EPF/EPS contribution rules	Up to ₹1.5 lakh annually	Fixed at inception based on age and desired pension
Partial Withdrawal	Allowed, subject to applicable T&C	Allowed in specified cases	Allowed after 6 years	Not allowed
Lock-in Period	Differs by plan	Till age 60	15 years	Till age 60
Returns	Fixed or market-linked, varies by plan	Fixed with quarterly review	Fixed with quarterly review	Fixed till retirement
Risk Level	Moderate to high (fund dependent)	Very low with sovereign guarantee	Very low with sovereign guarantee	Very low with sovereign guarantee

Note:^*Tax benefits u/s 80C and 80 CCD (1B) are available only under the old tax regime. Section 10 and 10 (10D) benefits are available under both new and old tax regimes.

Why ULIPs Make Good Retirement Plans?

Since ULIPs are invested in the equity market, they yield higher returns compared to other retirement, pension, and investment plans such as FDs, pension schemes, bonds, and endowment policies. In addition, investing in Unit Linked Insurance Plans (ULIPs) involves less risk, so you get the benefit of both security and excellent returns.

How to Pass Down Your Retirement Plan Money to Your Family?

Retirement plans not only give you financial freedom, but they also help protect your family's future. Here's how you can make sure that your retirement savings really help your loved ones:

Nominee Declaration:Choose a nominee to enable them to get the death benefit immediately. This will make sure that the money goes to your family without any hassles or legal challenges.
Plans for Joint Life:Pick a joint-life pension plan that keeps paying out after your death so your spouse can keep getting money without worrying.
Return of Purchase Price:Choose annuity plans such as Saral Pension Yojna that will give your family back the money you paid for them if you die. This way, they will at least get back what you put in.
Planning Your Will:Include your retirement savings in your will, and make sure to name beneficiaries so that there are no arguments about how to divide your assets after you die.

How Retirement Readiness Varies Across India?

The recent India Retirement Index Study 5.0 indicated that the preparedness of Indians varies across regions as well as across demographics. Below are some of the key findings of the survey regarding retirement readiness among Indians:

Retirement Readiness in East India

Respondents based in Eastern Indian cities led the country in terms of overall preparedness and displayed a superior balance across key factors such as finance, health and emotion.

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Why is retirement planning important for Emotional & Lifestyle Security?

On the surface, it might seem that pension funds being financial products are only concerned with ensuring the port-retirement financial security. However, life after retirement is not just about having sufficient money to meet financial needs.

This is evident when one take a closer look at key emotional wellness statistics uncovered by the recently conducted IRIS 5.0 survey conducted by Axis Max Life across multiple locations in India. Below are some key highlights:

Highlighting the emotional burden of retirement, around 70% of urban respondents aged less than 50 years expressed a fear loneliness in retirement
Beyond health concerns associated with getting older, around 79% of IRIS 5.0 respondents also expressed worries related to climate change that might adversely impact their retirement
Another sobering realisation was expressed by 50% of IRIS 5.0 respondents who expected to be financially dependent on their family during their golden years

In view of these considerations, retirement planning can not solely focus on ensuring financial security. One also needs to consider health and well-being through regular physical activity, health check-ups and adequate health insurance cover to overcome medical emergencies.

Beyond health, the emotional well-being also needs to be considered. As one grows older, one might have fewer things to do but have a lot more time on one’s hands. In such a situation, even small actions such as pursuing a new hobby or learning a new skill can help protect one’s emotional well-being.

A well-constructed retirement plan should thus take a more holistic view that combines key elements of financial, emotional and health needs into a single unified solution. In this regard, a pension plan can serve as a suitable starting point. This is because eliminating post-retirement money worries can play a pivotal role in reducing the emotional strain and contribute to the overall health and well-being of the policyholder.

Difference Between Pension Plans, PPF, NPS, and Saral Pension Yojana

Here's a full comparison of Pension Plans, PPF, NPS, and Saral Pension Yojana based on their main features, benefits, and investment choices:

Feature	Pension Plans	PPF (Public Provident Fund)	NPS (National Pension System)	Saral Pension Yojana
Plan Benefits	Long-term retirement savings with pension and life cover	Long-term savings with guaranteed returns	Long-term retirement scheme for individuals	Immediate annuity providing post-retirement income
Guaranteed Returns	Yes (varies by plan)	Yes	No (Market-linked)	Yes (Guaranteed Annuity)
Flexible Contributions	Yes	Yes	Yes	No
Death Benefit	Yes	No	No	Yes
Annuity Payment Options	Yes	No	Yes	Yes
Tax Benefit*	80C, 10(10D)	80C, Section 10	80CCD(1), 80CCD(1B)	80C, 10(10D)
Lock-in Period	Varies by plan	15 years	Till 60 years of age	40 years of age
Risk Factor	Moderate	Low	Varies by allocation	Low

*Only Applicable under old Tax Regime.
**Varies as per market conditions/asset allocation. Please check current applicable returns before making final decision.

When is the Best Time to Put Money into a Pension Plan?

One short and crisp answer to this is- Today is the best day to opt for a pension plan!
The best approach to make sure you have a stress-free and financially independent retirement is to start saving in a pension plan as soon as possible. As you become older, here's how your approach can change:

In your 20s: Make small, regular payments to take advantage of compounding. Getting started early puts your money on a gradual but consistent growth path, making it easy for you to build up a large retirement corpus over time.
In your 30s: As your income rises, you should balance financial obligations, such as paying off your home loan or taking care of your family's needs, while also increasing your pension payments. Investing more and more over time will help ensure that your finances stay stable in the long run.
In your 40s: You have now fewer years left to work, so now is the time to save as much as you can. Think about making bigger contributions to fill in any gaps and make your retirement fund more secure.
In your 50s: Think about short-term pension plans that let you choose between immediate and deferred annuities to get a stable income once you retire. This is the time to plan how you'll continue to support your lifestyle during retirement.

Starting early makes sure you receive the best pension planning outcomes in India that fits your changing financial goals. It also lets your assets increase over time with stability even when the market changes.

Documents Required to Buy a Pension Plan in India

Purchasing a pension plan typically requires submission of few key documents for KYC purposes. Below is the list of documents required to buy a pension plan in India and whether they can used as identity proof, address proof, age proof, etc.

Document Types	Accepted as Identity Proof	Accepted as Address Proof	Accepted as Age Proof
Passport	Yes	Yes	Yes
Voter ID Card issued by the Election Commission of India	Yes	Yes	Yes
Driving Licence	Yes	Yes	Yes
Aadhaar Card	Yes	Yes	Yes
PAN Card	Yes	No	Yes

Apart from identity, address and age proof, you also need to provide income proof to the pension plan provider. Common documents accepted as proof of income in India include:

Income Proof For Salaried	Income Proof for Self-Employed
Salary Slip of latest 3 months along with bank statement of salary credit	Latest filed ITR for last 2 financial years
Latest Form 16	Audited business account for latest 3 years with shareholding pattern and/or partnership deed
Latest filed ITR for the previous FY	Profit & Loss Statement for past 3 years with balance sheet

Note: The above list of documents required for purchasing a pension plan are for illustration only and subject to periodic chnage. Pension plan providers may ask for additional documents based on applicant profile and internal policies.

Why Should You Buy a Pension Plan from Axis Max Life Insurance?

There are various reasons, why you should consider buying a pension plan from Axis Max Life Insurance:

1. Disciplined long-term savings:

Axis Max Life Pension Plans are designed to offer a simple and effective way to save for retirement. In the case of deferred annuity plans, you can flexibly choose the duration of accumulation in order to maximise the benefit of long-term compounding for your retirement savings.

2. Wide Choice of Funds:

Axis Max Life Pension and Retirement Plans offer a wide range of funds to choose from. This can help maximise the benefits available from market-linked instruments while ensuring that the choice of fund meets the risk tolerance of the policyholder. In fact, as per historical performance, equity-oriented pension funds from Axis Max Life Insurance have provided 5 year returns as high as 23% p.a.

3. Free Unlimited Fund Switches:

Axis Max Life Pension Plans offer unmatched flexibility to policyholders by allowing them to switch between funds depending on their current financial needs and risk tolerance. What’s more these switches can be done unlimited number of times without having to pay any charges.

4. Multiple Investment Strategies:

Multiple Investment Strategies: Since not all policyholders are equally risk averse or have the same risk appetite, a single investment strategy would not work for everyone. That’s why Axis Max Life Pension Plans offer policyholders the option to choose from multiple investment strategy depending on how aggressive or conservative they want to be.

5. Tax Savings:

Axis Max Life Pension Plan investments offer tax benefits u/s 80CCC if the policyholders opt for the old tax regime. Moreover, in case the pension plan death benefits are paid out, the pay-out is tax-exempt under either tax regime, as per the provisions of Section 10 (10D) of the Income Tax Act.

6. Capital Guarantee:

Some Axis Max Life Pension Plans such as annuity plans and capital guarantee solution are more suited to the needs of conservative policyholders. These plans ensure that the principal invested by the policyholder is kept safe at all times, while providing assured predictable income that can help meet regular post retirement expenses.

7. Enhanced Protection Through Riders:

Axis Max Life Pension Plans feature the option of choosing different optional riders and add-ons. These are designed to enhance the protection of life insurance offered by the base pension plan. The riders options available differ from one pension plan to another so do read through the policy prospectus carefully to know the different options available to you.

Pension Plans Comparison

Below table compares the key pension plans offered by Axis Max Life Insurance in 2026:

Plan Name	Minimum Age of Entry	Maximum Age of Entry	Minimum Policy Term	Minimum Premium Amount
Axis Max Life Guaranteed Lifetime Income Plan	25 years	85 years	Till death of annuitant / last survivor	₹12,000 annually
Axis Max Life Smart Guaranteed Pension Plan	30 years	85 years	Till death of annuitant / last survivor	₹12,000 annually
Axis Max Life Smart Wealth Annuity Guaranteed Pension Plan	25 years	85 years	Till death of annuitant / last survivor	₹12,000 annually
Axis Max Life Forever Young Pension Plan	18 years	70 years	10 years	₹1 lakh for single pay plans ₹24,000 annually for regular & limited pay

Note: The above features are illustrative only for further details, please read through the prospectus of the respective pension plans.

Conclusion

Pension plans are important for making sure you have long-term financial security and freedom after you retire. There are several plans to choose from, and people may pick the ones that will help them reach their retirement goals by giving them a regular income throughout retirement.

Planning ahead and putting money into the right pension plan at the right time can make retirement a stress-free and enjoyable period of your life.

People can make sure their future is safe, meet their basic needs, and have a financially stable and happy life after retirement by making smart choices.

FAQ's on Retirement & Pension Plans

Which Is the Best Retirement Plan In 2026?

When selecting the best retirement plans in India, no one answer applies to everyone. Insurers offer multiple pension plans with varied benefits. It depends on the investor's financial profile, lifestyle requirements, risk tolerance, and other personal factors to choose the best retirement plans in India.

What Are the Types of Retirement Plans?

Generally, you will find traditional pension plans, National Pension Scheme (NPS) and Unit Linked Pension Plans. These may have varied combination of benefits going further, depending on the insurer.

What Is Participating and Non-Participating Pension Plan?

With a participating pension plan, a policyholder can share the profits of the insurance company. These earnings are disseminated as dividends or incentives. Thus, it can also be called a with-profit scheme.

In contrast, no profits or dividends are shared with the policyholders of non-participating pension plans.

How Is Pension Plan Different from A Term Plan?

Pension plans may be set up so that you or your employer contributes to them. You can receive a monthly payout for the remainder of your life if you purchase an annuity. With a term plan, you safeguard the family's future by securing a certain amount against unpredicted circumstances.

What are the Tax Benefits Accompanying Pension Plans in India?

As far as the tax benefits of pension plans in India are concerned, you can claim deductions for contributions up to Rs 1.5 lakhs, including buying and renewing, as per Section 80CCC of the Income Tax Act.

Tax benefits are as prevailing tax laws subject to change

What Is Annuity?

Policyholders who require future payments can purchase various forms of annuities from insurance providers. You may choose whether to collect the money in monthly instalments or not, depending on the type of annuity. It assures an individual that they can rely on the income from this source in the event of financial difficulty.

Can I Have Multiple Pension Plans?

You can invest in multiple pension schemes in India, but there may be limits to the total amount you can contribute each year to all schemes if you want to get tax relief on your contributions.

What If I Surrender My Pension Plan Before Maturity?

In case you decide to surrender your pension plan before it matures, the full surrender amount will be added to your taxable income and charged according to your tax bracket. Notably, you will still have to pay back any tax exemptions you received the premiums you owe up until now

Can I Withdraw the Money Invested Before Maturity?

Generally, pension plans come with an age limit, crossing which you can begin withdrawing funds

Does Pension End After the Policyholder's Death?

After retirement, a pension plan provides financial protection to the policyholder. In the event of the insured's untimely death, the nominee will be entitled to compensation.

What Is Guaranteed Lifetime Income?

A guaranteed lifetime income is a fixed amount that will be paid at the start of the policy and will be paid for the rest of the policy's duration, depending on the mode chosen.

What Is A Typical Pension Plan?

A typical pension plan comes with the 'accumulation phase,' which lasts from the moment you buy a plan until you retire. You will be paying premiums during this period, which will be wisely spent as they are received as pension during the 'payment phase' of the plan.

Which Is Better Pension or Investment?

Whether a person should choose an investment plan or a pension plan depends on a number of factors such as return rate, risk-appetite, investment tenure, tax benefits, and more.

What Is Provident Fund?

An Employee Provident Fund (EPF) is a retirement savings plan for salaried workers who work for a company with 20 or more employees. The Employee Provident Fund Organization of India, or EPFO, has mandated that all employers contribute a portion of their workers' wages to the fund.

What Is New Pension Scheme? What Are the Benefits Available with It?

The New Pension Scheme, also known as the National Pension Scheme, is a pension plan developed by the Indian government to help individuals protect their financial future after retirement. The Pension Fund Regulatory and Development Authority of India (PFRDA) regulates the National Pension Scheme, which is open to any Indian person between 18 and 60.

Some of the benefits of the new pension scheme are that it is cost-effective with a variety of investment opportunities, tax benefits and more.

When Should I Start Retirement Planning?

The answer is straightforward: as soon as possible. In an ideal world, you would begin saving in your twenties, when you first start earning money. The reason for this is that the faster you start investing, the more time your money will have to grow.

What Is the Importance of Insurance in Retirement Planning?

In retirement, having the right form of life insurance and the right amount of life insurance coverage can serve many purposes. It will help you protect your wealth, generate tax-free cash flow, give families peace of mind, and even increase your portfolio's overall returns.

Can I Change the Nominee of The Policy?

The policyholder may change the nominee of the policy at any time if they feel the need for it.

What Is Vesting Date?

The age at which a pension plan's policyholder begins earning a monthly pension is referred to as vesting age. In most cases, the minimum vesting age is between 40 and 50 years old, with some flexibility up to 70 years old. There are a few businesses, however, that extend the vesting age to 90 years.

Should I Save for My Retirement or My Child’s Education First?

While it is difficult to prioritize one over the other, it is essential that you secure your retirement years first, as retirement planning is essential and pension plans in India are mostly affordable. In addition, you can invest in a child’s plan or open a savings account/fund that will help your child for his education or other future financial goals.

Can I Include My Spouse in the Annuity Plan?

While an annuity plan typically covers one individual/life, you can invest in a joint annuity plan that will cover both you and your spouse.

Is There Any Guaranteed Maturity Benefit (MGB) in Retirement Plans?

No, there is no Guaranteed Maturity Benefit (MGB) in retirement plans in India. However, it varies from one plan to another and you might be able to avail of a surrender value/benefit.

How Can I Pay the Pension Plan Premiums?

Today, you can easily pay the premiums for a pension plan online as most insurance providers offer the option. However, you can also write a cheque or pay offline based on your preference.

What is the difference between pension and retirement?

The words pension and retirement are often confused with each other, but they are different. While pension refers to the monetary amount subject to the pensioner on their retirement, retirement refers to the time when one reaches the end of their employment age, i.e.58- 60.

How long does a pension last?

Pension refers to the monetary moment one receives after retirement. It is paid in form of lifetime monthly payments which means that pension lasts a lifetime.

What is accumulation phase?

Accumulation refers to the phase wherein an individual contributes to their pension plan to get the pension benefits after retirement.

What is the legal retirement age in India?

The legal retirement age in India is 60 years.

What is an average retirement income?

It depends on the kind of lifestyle you are living. If you are living a comfortable lifestyle, experts suggest that you should have a minimum of INR 1.3 crore saved up to meet your retirement expenses.

What is the 7% rule for retirement?

7% rule helps individuals decide the amount that would be adequate to meet their financial requirements after retirement. 7% rule takes inflation into consideration. According to financial experts, once you are done estimating your ideal retirement amount after calculating your annual expenses, it’s suggested that you increase that amount by 7% to include the rate of inflation. This way, your retirement corpus won’t lose its value in future.

How much corpus do I need for retirement?

The size of the retirement savings corpus you need to be financially secure will vary significantly based on key factors such as your lifestyle, current health conditions, number of financial dependents, and so on.
Also keep in mind the average retail inflation rate of around 5% annually and an annual health care inflation rate of around 10% over the last 10 years. You have to consider also consider these factors when determining the ideal size of your retirement savings corpus.

Why should I start retirement planning early?

Retirement planning, if started early in life, gives your savings and investments more time to grow and the power of compounding works in your favour. Due to compounding benefits and longer growth period, even relatively small regular investments will have the potential to create a substantially large corpus.

What is the Unified Pension Scheme (UPS)?

The Unified Pension Scheme or UPS is a government-backed retirement plan that is currently available to central government employees who are currently contributing to the National Pension System (NPS).
This optional pension scheme attempts to strike a balance between the perceived security of traditional government pension plans and the potentially more risky market-linked. In order to achieve this balance UPS combines the security of the more traditional defined-benefit pension with a contribution-based structure. Simultaneously UPS also features key benefits such inflation-index pay and minimum guaranteed pay out.

Which is the best pension scheme?

No single pension scheme can be considered better than all others that are available. This is because, the choice of pension scheme depends on multiple factors such as the individual’s goals, risk tolerance, cost of investment, flexibility and more.
For instance, individuals who have moderate to high risk tolerance and are starting their retirement planning early may opt for market-linked pension plans or the National Pension System. These options might be risky due to their equity orientation, however, the opportunity to provide high long-term capital appreciation leading to high monthly pension pay out.
Alternatively, if capital preservation is the goal, annuity plans and capital guarantee solutions that ensure protection of the principal investment might be preferable. Similarly, if immediate regular income is required, immediate annuity plans or SCSS investments might be preferable.

Can I withdraw money from my retirement plan before retirement?

Some retirement plans and pension schemes provide the option of partial or complete withdrawal before retirement of the policyholder and superannuation of the scheme occurs. However, there are various limits on such withdrawals with regards to the amount of withdrawal allowed as well as the penalties applicable in case such premature withdrawals are made.
This limitation on withdrawals from pension schemes are designed to discourage the policyholder from dipping into their retirement savings expect for specified medical and financial emergencies. This way the policyholders would be better placed to stay on course to reach their retirement financing needs.

How do I get a ₹50000 monthly pension?

The amount of monthly pension depends on various factors such as the return from the annuity, the size of the corpus and the period over which the regular monthly pension is to be paid out.
For instance, suppose, you are investing in 6% p.a. annuity plan to get a ₹50,000 monthly pension over a period of 30 years. In this case, you will need to purchase annuities worth around ₹88 lakh to receive the targeted regular income.
Now, what if you plan to receive the same amount of monthly pension over the same time period, but your annuity plan gives returns of only 5% p.a.? The investment corpus required for monthly pension of ₹50,000 over 30 years would be around ₹97 lakh, which is higher as the rate of return on the plan is lower.

Is pension plan better than FD?

Both pension plans and fixed deposits have their only unique benefits and limitations. Which one is better depends on the requirements of the investor. FDs are often favoured due to their ability to provide assured returns and the low risk associated with them. What’s more they are available with various tenure options that enhances their overall flexibility.
Pension Plans on the other hand might be preferred due to their ability to generate market-linked returns and various tax benefits that may be availed. What’s more, these policies also offer the benefit of in-built life cover which provides additional financial protection that cannot be provided by FDs.
So, FDs might be more suitable for achieving a wide range of short and medium term financial goals. Pension plans, on the other hand are more suitable for those seeking to achieve the long-term goal of ensuring financial security for their post-retirement years.

How to get ₹2 lakh per month pension?

In order to get a specified monthly pension such as ₹2 lakh monthly, you can opt for various instruments such as systematic withdrawal plans from mutual funds, annuity plans that offer guaranteed returns, guaranteed pension plans, etc.
However, the investment amount would vary depending on the type of retirement plan chosen, the period over which you want to receive the regular pension, and the return from the investment.
For instance, a lump sum investment of around ₹1.94 crore in a 5% p.a. annuity plan will be required to receive the ₹2 lakh monthly pension for a 30 year period. But in case you plan to receive this income for only 15 years, the lump sum investment amount required in the same plan will be around ₹1.31 crore only.

ARN: PCP/RP/290124

Sources:

www.financialexpress.com/money/insurance/choose-whole-life-ulip-for-a-worry-free-retired-life/1737011/

www.klaggarwal.com/direct-tax/investment-pension-plans/

www.differencebetween.net/language/words-language/difference-between-pension-and-retirement/

www.livemint.com/money/personal-finance/how-much-retirement-corpus-is-enough-this-is-what-4-withdrawal-rule-says-11620377326537.htmlhttps://www.thehindubusinessline.com/economy/shrinking-households-50-of-indian-families-are-nuclear/article67126676.ece

economictimes.indiatimes.com/wealth/personal-finance-news/is-rs-3-crore-enough-for-retirement-find-out-here/articleshow/72866612.cms

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Customer Reviews

Axis Max Life Pension Plan Plan

“It’s not that I had difficulty in understanding and evaluating retirement plans online but talking to someone gives you that extra assurance that you are taking the right step. I have to commend the ways in which these Axis Max Life agents are trained and that only reflects in the way he explained the policy details to me . I will recommend Axis Max Life to anyone seeking a pension plan”

Mr. Mishra

Axis Max Life Pension Plan Plan

“The idea of investing in a pension plan came to me from my father, who being a retired Army officer is very focused about planning early. However, it was only when he introduced me to his friend who is an Axis Max Life Agent, I realized it’s actually very simple. Anyways, I think it was a timely decision and I knew that while he will get his army pension, I’ll have to plan post my corporate life.”

Mr. Menon

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Age of Male Applicant	Premium Amount for Rs. 75 lakh Term Plan		Premium Amount for Rs. 1 crore Term Plan		Premium Amount for Rs. 1.5 crore Term Plan		Premium Amount for Rs. 2 crore Term Plan
Age of Male Applicant	Smoker	Non-Smoker	Smoker	Non-Smoker	Smoker	Non-Smoker	Smoker	Non-Smoker
18 Years (PPT: 67 years)	1,675/Month Total Premium: 12.75 lakh	930/Month Total Premium: 7.08 lakh	1,674/Month Total Premium: 12.74 lakh	930/Month Total Premium: 7.08 lakh	2,511/Month Total Premium: 19.11 lakh	1,395/Month Total Premium: 10.62 lakh	3,069/Month Total Premium: 23.36 lakh	1,705/Month Total Premium: 12.98 lakh
25 Years (PPT: 60 years)	2,213/Month Total Premium: 15.09 lakh	1,229/Month Total Premium: 8.38 lakh	2,292/Month Total Premium: 15.62 lakh	1,273/Month Total Premium: 8.68 lakh	3,438/Month Total Premium: 23.44 lakh	1,910/Month Total Premium: 13.02 lakh	4,138/Month Total Premium: 28.21 lakh	2,299/Month Total Premium: 15.67 lakh
35 Years (PPT: 50 years)	3,528/Month Total Premium: 20.35 lakh	1,990/Month Total Premium: 11.31 lakh	4,007/Month Total Premium: 22.77 lakh	2,226/Month Total Premium: 12.65 lakh	6,011/Month Total Premium: 34.15 lakh	3,339/Month Total Premium: 18.97 lakh	6,821/Month Total Premium: 38.76 lakh	3,790/Month Total Premium: 21.12 lakh
45 Years (PPT: 40 years)	6,722/Month Total Premium: 30.56 lakh	3,734/Month Total Premium: 16.97 lakh	7,395/Month Total Premium: 33.61 lakh	4,108/Month Total Premium: 18.67 lakh	11,093/Month Total Premium: 50.42 lakh	6,163/Month Total Premium: 28.25 lakh	14,390/Month Total Premium: 65.41 lakh	7,994/Month Total Premium: 36.34 lakh
55 Years (PPT: 30 years)	13,121/Month Total Premium: 44.73 lakh	7,289/Month Total Premium: 24.85 lakh	15,303/Month Total Premium: 52.17 lakh	8,502/Month Total Premium: 28.98 lakh	22,955/Month Total Premium: 78.25 lakh	12,753/Month Total Premium: 43.47 lakh	30,006/Month Total Premium: 102.29 lakh	16,670/Month Total Premium: 56.83 lakh
60 Years (PPT: 25 years)	18,963/Month Total Premium: 53.87 lakh	10,535/Month Total Premium: 29.93 lakh	22,272/Month Total Premium: 63.27 lakh	12,373/Month Total Premium: 35.15 lakh	33,408/Month Total Premium: 94.91 lakh	18,560/Month Total Premium: 52.73 lakh	43,123/Month Total Premium: 122.51 lakh	23,957/Month Total Premium: 68.06 lakh

Age of Female Applicant	Premium Amount for Rs. 75 lakh Term Plan		Premium Amount for Rs. 1 crore Term Plan		Premium Amount for Rs. 1.5 crore Term Plan		Premium Amount for Rs. 2 crore Term Plan
Age of Female Applicant	Smoker	Non-Smoker	Smoker	Non-Smoker	Smoker	Non-Smoker	Smoker	Non-Smoker
18 Years (PPT: 67 years)	1,675/Month Total Premium payable: 12.75 lakh	930/Month Total Premium payable: 7.08 lakh	1,674/Month Total Premium payable: 12.74 lakh	930/Month Total Premium payable: 7.08 lakh	2,511/Month Total Premium payable: 19.11 lakh	1,395/Month Total Premium payable: 10.62 lakh	3,069/Month Total Premium payable: 23.36 lakh	1,705/Month Total Premium payable: 12.98 lakh
25 Years (PPT: 60 years)	1,922/Month Total Premium payable: 13.10 lakh	1,068/Month Total Premium payable: 7.28 lakh	1,946/Month Total Premium payable: 13.27 lakh	1,081/Month Total Premium payable: 7.37 lakh	2,919/Month Total Premium payable: 19.90 lakh	1,621/Month Total Premium payable: 11.05 lakh	3,410/Month Total Premium payable: 23.25 lakh	1,894/Month Total Premium payable: 12.91 lakh
35 Years (PPT: 50 years)	2,946/Month Total Premium payable: 16.74 lakh	1,637/Month Total Premium payable: 9.30 lakh	3,240/Month Total Premium payable: 18.41 lakh	1,800/Month Total Premium payable: 10.23 lakh	4,860/Month Total Premium payable: 27.61 lakh	2,700/Month Total Premium payable: 15.34 lakh	5,507/Month Total Premium payable: 31.29 lakh	3,059/Month Total Premium payable: 17.38 lakh
45 Years (PPT: 40 years)	5,396/Month Total Premium payable: 24.53 lakh	2,998/Month Total Premium payable: 13.63 lakh	5,645/Month Total Premium payable: 25.66 lakh	3,136/Month Total Premium payable: 14.25 lakh	8,468/Month Total Premium payable: 38.49 lakh	4,704/Month Total Premium payable: 21.38 lakh	10,893/Month Total Premium payable: 49.51 lakh	6,051/Month Total Premium payable: 27.51 lakh
55 Years (PPT: 30 years)	10,000/Month Total Premium payable: 34.09 lakh	5,555/Month Total Premium payable: 18.94 lakh	11,269/Month Total Premium payable: 38.42 lakh	6,261/Month Total Premium payable: 21.34 lakh	16,904/Month Total Premium payable: 57.63 lakh	9,391/Month Total Premium payable: 32.01 lakh	22,227/Month Total Premium payable: 75.77 lakh	12,348/Month Total Premium payable: 42.10 lakh
60 Years (PPT: 25 years)	14,195/Month Total Premium payable: 40.33 lakh	7,886/Month Total Premium payable: 22.40 lakh	16,538/Month Total Premium payable: 46.98 lakh	9,188/Month Total Premium payable: 26.10 lakh	24,808/Month Total Premium payable: 70.48 lakh	13,782/Month Total Premium payable: 39.15 lakh	32,049/Month Total Premium payable: 91.05 lakh	17,805/Month Total Premium payable: 50.58 lakh

Pension Plan

Axis Max Life Pension Plans

Retirement & Pension Plans by Axis Max Life

What are Pension or Retirement Plans?

How Do Pension Plans Work?

1. Accumulation Phase:

2. Vesting Phase

Why Pension Plan is Important in 2026?

Increased life expectancy:

Higher Healthcare Costs:

Increase in Cost of Living:

Decrease in Job Security:

Changing Family Structure:

Tax Benefits:

Lack of Social Security Plans:

Types of Pension and Retirement Plans in India

1. Deferred Annuity

2. Immediate Annuity

3. Guaranteed Period Annuity

4. The National Pension Scheme (NPS)

5. Atal Pension Yojana (APY)

6. Life Annuity

7. Life Insurance in Pension Plans

8. Whole Life ULIPs

9. Defined Benefit

10. Defined Contribution

11. Pension Plans With/Without Life Cover

12. Public Provident Fund (PPF)

13. Employee Pension Scheme (EPS)

14. Retirement-Focused Mutual Fund Schemes

15. Employees Provident Fund (EPF)

16. Pradhan Mantri Vaya Vandana Yojana (PMVVY)

17. Senior Citizens Savings Scheme (SCSS)

18. Pradhan Mantri Shram Yogi Maan-Dhan

19. Unit Linked Pension Plans (ULPPs)

Features of Pension Plans

1. Steady Flow of Income

2. Vesting Age

3. Surrender Value

4. Accumulation Period

5. Payment Period

6. Long-Term Savings

7. Tax-Benefits

8. Nomination Facility

9. Flexibility

10. In-built Life Cover

Why do I Need to Plan for my Retirement?

1. Financial Security After Retirement

2. Medical and Emergency Planning

3. Financial Independence

4. Disciplined Savings

5. Planning for a Longer Life

Who Should Invest in Pension Plans?

Young Professionals

Salaried Individuals

Self-Employed Individuals

Working Women

Employees Without Pension Benefits

Gig Workers

Non-Resident Indians (NRIs)

Career Starters (in 20s & 30s)

Mid-Level Professionals (in 30s & 40s)

Anyone Seeking Financial Independence and Peace of Mind

Benefits of Retirement Plans in 2026

Financial stability after retirement

Power of compounding

Tax benefits

Life cover

Cover against inflation

Disciplined long-term investment

Source of income for employees with no pension

Opportunity to retire early

Benefits of Starting Early

Eligibility Criteria for Pension Plans

How to Choose the Best Retirement Plan?

1. Check Limitations on Investment Amount

2. Consider Returns

3. Liquidity of Investment

4. Look for Added Benefits

5. Get a Good Investment Mix