Retirement Insurance Plans Retirement Insurance Plans

Retirement Insurance Plans

Get ready for the Second Innings.

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    Retirement Corpus

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    Tax Benefits

Tax Benefits are as per prevailing tax laws which are subject to change.​ AN: Mar 33/22

Retirement Plans

Keep your freedom and dignity intact in the second innings of life!

When you are young and at an early stage of your career, you are always full of zeal and energy to chase dreams, fulfill goals and face the challenges life throws at you. Though money can’t buy happiness, it helps us improve and maintain a lifestyle throughout. At this stage, you seldom choose not to think about what the future of these aspirations would look like- when you are at the end of your career.

Retirement planning helps you with financial freedom and taking responsibility for dependents even after stepping down from your professional role. Retirement Plans work as savings for your second inning as well as an investment into a healthy and happy future. Moreover, the right retirement investment plan plays the role of a financial stress-buster in your golden age. You not only remain financially self-sufficient to look after your health or fulfil your dreams like travelling, etc. but can also take out enough funds to support your family financially!

Retirement plans in India today have become as flexible as our lifestyles. From travelling the world, setting up your business to providing for your dependants, you can invest in retirement plans as per your life goals. This has made early retirement easy for many professionals. Now they don’t have to worry about financial responsibilities and can plan a happy retirement. Aviva pension plans give you the flexibility of choosing the pension installment and tenure, providing regular income during your golden years while ensuring security to you and your loved ones along the way.

Let's see what the pension plans are and how they work to make you financially independent after retirement.

What is a Pension Plan?

Pension plans are a type of life/annuity plan that is specially designed to meet your post-retirement financial needs, from living expenses to medical needs. However, the best pension plan takes you farther than just meeting your daily expenses and medical needs. It makes you financially independent enough to fulfill your post retirement dreams.

This is possible when you invest in the best pension plan at the right time. All pension plans in India are known to provide guaranteed maturity benefits.

Why Do You Need Retirement and Pension Plans

We have talked so much about retirement pension plans till now. Let's discuss what you get out of these retirement plans. Why should you invest in a pension plan ?

  • Increasing inflation
    The inflation rate is growing with the time, and we can only imagine how much it will cost to continue maintaining our current lifestyle say in next twenty years. Thus, to fulfill your needs and wants post-retirement, you need more than your current savings. Investing these savings in the best pension plan will certainly help you create a huge corpus by the time you retire.
  • Power of compounding
    "Sooner the better," the saying stands true when you are thinking of investing in a retirement plan. That is because your savings get more time to grow and you can benefit from the power of compounding. Let's understand this in detail. If you have started your retirement savings as Rs 1.5 lakhs per year at the age of 45; by the age of 60 you will have accumulated Rs 44 lakhs with an interest rate of 8%. However, if you start investing the same amount at the age of 40, assuming the same interest rate of 8% by the age of 60 you will have accumulated Rs 74 lakhs as a retirement corpus.

Types of Retirement and Pension Plans

Just as with any other investment plan, you will find different types of retirement plans as well. To know which retirement pension plan is best suited to you, here we have discussed the types of pension plans.

  • Immediate annuity
    If you invest in this type of retirement plan, your pension begins right after you purchase this policy
  • Deferred annuity
    This type of pension plan needs you to pay premiums for the period of the policy tenure. You receive an accumulated sum after the policy term is over.
  • Joint life annuity
    Choose this plan if you wish to provide financial security to your loved ones. With this retirement plan, you are entitled to a lifetime pension. And at any point in time, in case of your death, you spouse continues to receive the pensions.

In case you buy an annuity with Return of Purchase Price

You get pensions for life as long as your survive and on your death, the Purchase Price is paid to your Nominee.

Benefits of Buying Retirement Pension Plans

  • Regular income after retirement
    When you have retired and have no primary source of income, your retirement planning comes to your aid. You receive the sum assured from your pension plan in terms of regular income to fulfill your living needs, wishes, as well as medical expenses.
  • Tax benefits
    Another popular benefit of the pension plan is tax benefits. What kind of tax benefits you can receive and how much amount can be exempted from your taxable income depends on the type of pension plan you have invested in. In the Accumulation Phase, you will pay the premium at regular intervals to the plan provider. When the Income Phase begins, you will be able to withdraw 1/3rd of the money saved, while the remaining amount will be used to purchase an annuity product, which will create a source of regular income for the rest of your life. The tax benefit of a deferred annuity is that it lets your income grow tax-freeexempted during the Accumulation Phase. This means you will not have to pay any taxes on the money that accumulates during the time of premium payment

Our Retirement Plans

More than financial freedom – it’s a key to maintain a good lifestyle after your regular earnings come to a halt

Make way for a perfect retirement

Aviva New Innings Pension Plan

Key Benefits
    • Guaranteed corpus for retirement
    • Secured life for your family
    • Limited premium payment term

Know More

Pay once and get guaranteed payouts for life

Aviva Annuity Plus

Key Benefits
  • Annuity amount guaranteed for the life of the policy
  • 7 annuity options to choose from
  • Flexibility to increase purchase price for higher annuity amount

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A plan that offers gauranteed income and financial security

Aviva Saral Pension Plan

Key Benefits
  • One time payment to enjoy guaranteed* regular income for life
  • Joint Life option which secures future income of spouse
  • Tax Benefits based on prevailing tax laws, subject to change

Know More

Why Aviva Retirement Insurance Plans

We believe you should never compromise in living life king size, even after you retire

Your claim comes first

Over the last year we settled 94.45% of all claims made

We are the Most Trusted

Awarded Best Brand 2019 & Most Trusted Brand 2018 & 2019
(TRA brand Trust Report, 2019 & Economic Times)

Strong Partnerships

We are a joint venture of Dabur Invest Corp and Aviva International Holding Limited

Straight From Our Customers

The Why, What & How of Retirement Insurance Plans

All your doubts and questions answered by the experts

Child Insurance

A happy retired life starts early

Retirement planning requires meticulous planning and the right retirement investing tools

Child Insurance

Why are retirement plans a must-buy?

Retirement plans can address future financial expenses with the help of accumulated funds

Child Insurance

Financial Planning in your 40s

Save for your retirement, your parents, and your child's education, in your 40s

Frequently Asked Questions

  • During the early stage of your career, you may want to set aside some funds/assets to meet specific goals such as travelling, pursuing your hobbies, buying a car or house of your own, etc.
  • At the Mid- career stage, you start with setting money aside to plan for your life after retirement, such as for living arrangements, health funds, family responsibilities and more.
  • Then comes the retirement age, wherein you reap the benefits of years of successful savings and investments. You no longer pay in; instead, your years of savings start to give you benefits.

Although essential, retirement planning could be quite challenging in the early stage of your career. You are young and extremely busy starting off and excelling in your career, starting a family, or settling in a new location. You don’t have the time or feel the need to think about planning for your retirement just yet.

However, time flies so fast, and you will have to think of it then. So, why not start now?

Here’s how Retirement Plans in India help in keeping the financial freedom intact:

  • Retirement funds can help you face any unexpected circumstance, be it health issues or wealth worries, in the future.
  • Even after retirement, you can financially support your dependents towards their financial needs.
  • You can even fulfill your dreams or life goals such as travelling the world, etc.
  • With all of this, most importantly, you can still enjoy your financial freedom after you retire.

Not just this, a Retirement Plans helps you safeguard your dependents’ financial future; where in case of the unfortunate demise of the life insured, the nominee can avail the financial benefits of the plan.

Inflation is a big factor you need to consider when you start thinking about planning your retirement. You need to take into account how much will you need in order to maintain the similar lifestyle after retirement.

For example, you currently require Rs. 1 lakh a month to maintain a good lifestyle. 20 years from now, you will have to spend Rs. 3.27 lakh a month to enjoy the same lifestyle, considering constant inflation of 6% during the period.

You may want to use a retirement calculator to know how much money would you need in future for your retirement in India.

While choosing a Retirement Pension Plan, think carefully about the following aspects:

  • Investment options available for you
  • Current annual earnings and estimated retirement income
  • Rates of return-on-investments and compound interest
  • Risk and return of various schemes and assets
  • At what age and how long from now you wish to retire

Planning for retirement is a long-term goal, and investing early will give you more time to save and invest better, in a manner that will provide you higher pay outs as retirement corpus. Your risk appetite is higher in the early stage of life, and you have more time to make up for any losses incurred over the period.

However, as you move closer to your retirement age, your risk appetite gradually scales down.

Every individual sees and lives life differently. Keeping this in mind, we have designed plans to fulfill your life goals and support your aspirations even after retirement.

Aviva Retirement Pension Plans provide the following benefits:

  • Get a guaranteed savings corpus
  • Opt for lump sum investment
  • Avail tax benefits on premiums paid under section 80C of the Income Tax Act

Moreover, you can choose the time period for which you wish to avail the benefits of the plan. Some of our plans are also designed in a way where, in case of annuitant’s demise, the nominee will avail the benefits till the annuity period is over.

Aviva gives you 7 Annuity options and and helps you plan for your retirement:

1. Life Annuity: An equal annuity is paid in arrears as long as the annuitant survives

2. Annuity Guaranteed for 5 years and life thereafter

3. Annuity Guaranteed for 10 years and life thereafter

4. Annuity Guaranteed for 15 years and life thereafter

5. Annuity for life increasing at 3% per annum simple interest: Life annuity increasing at 3% p.a. is paid in arrears as long as the annuitant survives.

6. Life Annuity with Return of Purchase Price: A level annuity is paid in arrears as long as the annuitant survives and the Purchase Price of the annuity is paid to the nominee in case the annuitant passes away.

7. Joint Life Last Survivor Annuity: An equal annuity or pension is paid in arrears as long as both or either of the two annuitants survives.

Many investors and policy buyers often mistake a retirement investment plan as a means of savings until they are 65. Actually, if you start early and are in for long-term planning, these plans offer whopping benefits.

A Retirement Pension Plan works in two stages:

1) Accumulation stage: The stage when you start and continue to invest in policies, to build a retirement corpus.

  • At the start, you choose a pension plan, and the estimated amount you wish to receive upon maturity. This will help you align your policy term to your desired age of retirement.
  • Choice of the investment period (Premium Paying Term) – Depending on your lifestyle choices as well as investment and risk appetite, you need to decide the period for which you want to pay the premium for the plan. In case of a lump sum investment, you will be paying the whole amount at once.

2) Vesting age: The age at which your pension plan will start paying out. Your decision to quit your job at an early age will depend a lot on your financial status.

  • Once your retirement pension policy matures, you can avail the built corpus based on the annuity options chosen by you.

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AN: Feb 19/20