How can NRIs plan for retirement in India with Pension Plans?

How can NRIs plan for retirement in India with Pension Plans?

July 29, 2019 2:31 am,

Retirement pension plans in India for NRIs

Off late, many NRIs are keen to return to India to live their retirement life peacefully. To enable the same, they need to start investments in pension plans adequate to save adequate corpus. This is article is dedicated to Retirement plans in India for NRIs.

NRIs have many options to plan for retirement with pension plans. There are many insurers offering pension plans. The pension plans can be bought with several benefits, such as,

  • Annuity plans – they provide annuity returns post-retirement on a regularly
  • Pension corpus plan – they help provide a corpus at the end of the working period
  • Guaranteed pension plan – the plans give guaranteed returns
  • Unit linked plan – the plans that offer market-linked returns

Hence, HDFC Life insurance provides the option to transfer the accumulated pension pot in the UK under the QROPS plan.

QROPs will help to transfer pension pot to India and helps in providing steady income post-retirement. So, this plan also provides a growth opportunity in India.

Some of the pension plans for NRIs are given below:

  • HDFC Life Guaranteed pension plan – Provides guaranteed additions of 3% of sum assured get accrued for each completed policy year.
  • So, has the flexibility of investment for 5, 7 or 10 years. Policy term ranging 10 years o 20 years. Hence, the vesting age is from 37 years to 65 years.
  • LIC Jeevan Nidhi plan – It has good options for the annuity, with both immediate annuity or deferred annuity options. Provides provision for guaranteed addition in addition to the sum assured.
  • This will be paid as lump-sum or in annuity mode. Also, provides the riders for accidental death and disability benefit in this plan.
  • Max life perfect partner super plan – Provides guaranteed of 212.5% of sum assured at the age of 75.
  • SBI Life – Retire Smart – This plan gives an assured maturity benefit and secures the investment from market volatility.
  • So, it helps create retirement corpus with systematic investments in the earning years.  
  • ICIC Prulife Immediate Annuity – This type of policy provides a guaranteed pension for life, Provides critical illness benefits, Pension with an annual increase. Hence, flexibility to start the pension at the age of 30.

How to pay the premium and operating the retirement policy?

Hence, each of the insurers has a dedicated NRI cell that can help the individual to complete the application form for subscribing to the pension plan of interest.

So, payment of premium is possible through NRE or NRO account of the policyholder. The insurance companies also offer other means of payment such as through SWIFT payments such as Credit Card Standing instructions (CCSI), ECS payments and Direct Debit payments etc. Hence, the policy document is sent through email and can be sent to the postal address if requested.

Tax Benefits

Hence, Retirement plans in India for NRIs provide options to save tax under Section 80CCC and applicable sections under Income tax act 1961.

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