Living off a pension! That’s what most of us hope for when we retire from our 9 to 5 jobs. Who wouldn’t want to unwind in retirement without worrying about a steady income? Here’s the solution to keep your retirement blues away – Opt for a pension plan. Pension is a guaranteed income received by individuals on a regular basis even if they are not employed or earning a salary. This helps retirees maintain their standard of living and cover their necessary expenses. Overall, pensions play an essential role in providing retirees with financial security and stability in India.

An annuity, also known as a pension, is a lump sum payment made on a regular basis after retirement or when a pension plan matures. Deferred pension plans and immediate annuity plans are the two types of pension plans available in India. In an immediate annuity plan, the pension begins the following month, whereas, in a deferred pension plan, the investor must continue investing for a predetermined amount of time before receiving a pension.

The source of pension may differ depending on the individual. Employees in both the public and government sectors may receive a pension from the employees’ pension scheme, the National Pension System (NPS), or both. Additionally, a number of pension plans offered by life insurance firms can help individuals save money until retirement and then receive a regular pension