Retirement: Which is the best pension plan for an IT employee in India?

Information technology, or IT, as it is commonly known, is a very lucrative career option in India. As a result, we find many young people opting to become IT professionals. The IT industry offers well-paid jobs, travel opportunities and promises the employees of an overall comfortable life. But is this enough for an employee? Can a mere dependence on an IT job prove to secure every employee’s future? Perhaps not, and this is why every person working in the IT industry must secure his or her retirement years. A good idea is to invest in a pension plan. In this article we speak about the best pension policies in India and how they help the IT professionals. Take a look.

What is a pension plan?

A pension plan is an endowment insurance policy that helps you to build up a corpus for your retirement years. As an IT employee, it is a very good idea for you to start your investments early. If you wait till the last moment, you may end up with very little time to build up as sufficient fund. So start putting in small amounts of money for a long duration and make sure you have a comfortable life even after your salary stops coming in.

The best retirement plans for IT employees

Let us now take a look at some of the good pension plans.

• HDFC Pension Super Plus Plan : This is a very good pension plan for the young IT employees in India. The HDFC Pension Super Plus Plan is a non-participating ULIP that helps you in building up a safe corpus and also provides the option for your money to grow. The plan offers guaranteed returns, thereby securing your retirement. You can enter the plan between the ages of 35 and 65. The vesting age of the plan is between the ages of 55 and 75. You can pay the premiums annually, semi-annually or quarterly.
• LIC JeevanAkshay VI : LIC is one of the most trusted names in the India insurance industry. So it hardly comes as a surprise when we list the LIC JeevanAkshay VI as one of the best pension plans. This is a very flexible policy that offers as many as six annuity options. You can start this policy when you are just 30 years old. If you buy the policy for Rs 2.5 lacs or more, you can get attractive rebates as well.
• Bajaj Allianz Retire Rich Pension Plan : This is another impressive pension plan. It is a deferred pension plan. Being a ULIP, it offers a guaranteed return and a sum assured and also helps to multiply the dividends. The plan is available for a minimum of seven years and a maximum of 30 years.
• Max Life Forever Young Pension Plan : This is a wonderful retirement plan as it offers a guaranteed return of 101% on all the premiums you pay. You can therefore build up a substantial retirement fund for yourself with the help of this plan. The minimum entry age is 30 years and the maximum entry age is 65 years. The vesting age is between 50 years and 75 years.
• ICICI Pru Immediate Annuity Plan : This is a single premium pension plan that assures you a secondary source of income. The plan has four payout options and you can choose the one that suits you the best. The annuity is paid till the time the policyholder is alive. After that, the spouse receives the annuity. The minimum entry age is 45 years while the maximum entry age is 80 years. The minimum entry age for the spouse is just 20 years.

As an IT professional, it is your duty and responsibility to ensure that the comfortable life you have today continues even after you retire. You owe it to yourself and your family members. So choose a good pension plan from the options mentioned above and you will be able to secure a wonderful retirement for yourself, your spouse and your other dependent family members. Speak to your financial adviser to see which kind of annuity option to select and what mode of premium payment to opt for. Once you have all the necessary data, just go ahead and purchase the pension plan at the earliest.