Ans: Pension Plan is a kind of insurance cum investment plan. In this plan, the insured pays regular premium to the insurance company to build up a corpus over time. On maturity (retirement), this corpus is paid back to the insurer in the form of regular income. However, in case the insured dies, the beneficiary will get the sum assured along with the bonuses.

Ans: The regular payouts you get of your pension plan post retirement is called annuity. The annuity can be availed on a monthly/quarterly/half-yearly/yearly basis.

Ans: Pension plan assures a regular income post retirement when you enter the no-more-paychecks phase of your life. Retirement is perhaps the best time to enjoy leisure activities. Pension plan funds your to-do-lists post retirement. A pension plan is a great way to be financially independent in your second innings.

Ans: Yes, you do. 'PF is simply not enough.' The ever growing inflation will make your PF amount look quite minuscule in the future. It will not suffice your future expenses. This becomes all the more important, as you become more vulnerable to health problems in your old age. A lone provident fund amount will utterly fail to financially support the healthcare needs.

Ans: You can do that with a Retirement Calculator. You need to put in the following details in the calculator and it’ll sum up an ideal corpus. Present cost of living (monthly expenses) Inflation rate Retirement age Number of years you expect to live post retirement.

Ans: Pension Plans can be classified on various parameters. Here On the basis of mode of premium payment Deferred Annuity Pension Plan - The premium is paid regularly on a monthly/quarterly/annual basis. The annuity begins after a time period as specified by the policyholder in the annuity contract. Immediate Annuity Pension Plan - A lump sum is paid as a one-time premium and the annuity begins almost immediately and continues for the policy term or throughout the insured’s life.

Ans: Choosing the right annuity plan can bring major changes to your retirement income. Nowadays, many people consider buying annuity pension plans as the part of their retirement option. Annuity plans can be broadly categorized into immediate annuity plan and deferred annuity plan. To know which retirement plan you should choose it is important to learn more about these plans: Deferred Annuity Plan: Under this plan, annuity phase is preceded by saving phase. Such types of policies are designed for people who don't require immediate pensions and have several years till the retirement age. It means they have enough time to invest and build a corpus. All premiums which are paid get invested till the maturity date. Immediate Annuity Plan: In immediate annuity plan, if you are above 30 years, you can pay a lump sum amount and then start earning annuity benefits immediately after retirement. The payments can either be scheduled for a fixed tenure like 5, 10 or 15 years. Here, it is important to mention that immediate annuity plans are non-participating products and thus, they don't earn bonuses. You can choose any of the above plans based on your risk appetite, fund requirement and current annual income.

Ans: It is the time period during which you regularly pay premiums to the insurance company to receive income post retirement in the form of pension.