What is pension scheme & why should we take it?

If seen in the right way, then a person’s life begins with his retirement. There you start living your life on your terms. Whether you want to fulfill new objectives after retirement and live your life comfortable and worry-free, you can make your life very easy by taking any pension plan.

After retirement, the essential thing in your life becomes about your health and expenses on them. Adequate financial support has to be ensured to meet the day-to-day costs alone. If you take a retirement pension plan, you can make your life very easy in such a situation.

Today we will give you information through this article about a pension plan, the advantages and disadvantages of a pension, and all the facilities available under the pension plan…

What is a pension plan?

Retirement plans offered by life insurance companies work in 2 ways: to accumulate the amount during your earning days when you are shaving, and the other to invest in this way to collect the retirement amount.

Which can give you financial support after retirement. A retirement plan makes such an investment of your money while accumulating the shavings, which can give you reasonable returns over a long period and help build a substantial amount for your life after retirement.

You can get regular income in an annual salary during the post-retirement period. A retirement pension plan allows you to send an image of your earnings on whatsapp. Who makes this one you can withdraw in full every month even after your retirement in the form of monthly installments apart from retirement plans? Apart from investing in the golden years of life, security visits also help people meet all their needs. Given the high cost of living and rising currency situation, retirement planning has become a must in today’s times. Is.

Features of pension age

There are some point features of investing in a pension age plan.

After the person’s age is fixed, i.e., after 60 years, he can invest in the pension plan after his retirement. Today, many such insurance companies in our country claim that a person below the age of 18 years can invest in a pension plan scheme, whereas to buy other types of policies, it is necessary to be at the age of 30.

From the year, the person starts getting a pension under the pension plan. But it varies from plan to plan and company to company. Most insurance companies have a low premium requirement for a pension plan.

Eligibility for Pension Scheme

Different eligibility has been prescribed for all types of pension schemes in our country.

Minimum and Maximum Entry Age – The lowest and highest pension age has the lowest entry age of all pension plans, usually with a minimum entry age of 30 years and a maximum entry age of 75 years.

Lowest and Highest Vested Age: The minimum vesting age for most pension plans is 45 years, and the maximum age limit is 45 years.

Term of Insurance Policy: ​​All pension plans have a fixed tenure, mainly between 10 to 30 years.

Amount of Annual Premium – All types of pension plans have a minimum annual premium limit, though there is no restriction on the amount of most premiums.

Premium Paying Term: Mostly, all pension plans require you to pay the premium for the same period as listened and for the same period. Some programs even allow one-time premium payment provides.

Saral Pension Yojana Plan 2021

You all know that there are many types of insurance companies in our country that provide different types of pension plans for all the country’s citizens. All other companies have additional terms and conditions, which is difficult for the commoner to understand.

Keeping all these things in mind, the Insurance Regulatory and Development Authority of India (IRDAI) has instructed all the insurance companies in India to start Saral Pension Scheme. Saral Pension Yojana is a scheme issued by the Central Government. The government ordered to start this scheme by all insurance companies on 1 April 2021.

Under this scheme, all the insurance companies will have to keep simple and transparent terms and conditions under the name of pension to take this pension plan. Saral pension plan is taken in two ways first, single life plan, and second joint life plan.

  • Single Life Plan – Under a single life plan, this policy is taken in the name of any one person. As long as the person holding the procedure, whether male or female, remains alive, he gets the amount of pension after his death. The premium amount is paid to the nominee as given in that person’s papers.
  • Joint Life Plan – Both husband and wife can take advantage of this policy under the joint-life plan. In this plan, as long as the primary policyholder is alive, he continues to get punishment, but after the death of the person, the spouse receives the pension, after the end of both, the nominee gets the benefit of the base price amount

Benefits of retirement plan

Some benefits of a retirement plan come to the person, let’s know.

Responsibility of youth: Every person forgets or ignores all the financial needs of his old age while fulfilling the responsibility of the household in his youth, taking care of the children’s education and other types of expenses in his system.

There comes a time, who needs money, for this, today every person has to depend entirely on the relatives of their children, sometimes it is also seen that in old age, many people are forced to take the help of old age ashram. Let’s take

 In such a situation, if you try to improve your retirement from your youth, you can secure your future by taking a good retirement policy so that you do not need to spread your hands in front of anyone in your old age.

The benefit of the Power of Compounding: The most effective result of compounding investment is obtained when the compounding contributes to its growth. With the help of compounding, the investment grows manifold. It is often seen that the benefits of compounding are often not available in the long term. If a person invests a minimal amount every month, he can get good returns in a long time. In such a situation, he makes his retirement excellent and pleasant in his old age.

The benefit of tax exemption – All types of pension plans in India come under the rules of IRDA. All of them get tax exemption under the Income Tax Act on investment; different types of pension plans are exempted from other types of tax. Provide benefits.

Benefits of Saral Pension Yojana

  • In Saral Pension Yojana, the pensioner has to pay the premium only once. After that, he gets a pension for the rest of his life. If the pensioners die prematurely for any reason, then their retirement goes to either the wife or the husband. Still, this pension is available only then when the pension holder has taken a joint life plan.
  • There are very few such plans in the retirement plan, after taking which the person gets the immediate benefit, but if you take the project through all these pension plans, you will start getting a pension from the next month itself.
  • Under the Saral Pension Yojana, the beneficiary gets this annuity once the free amount is deposited. The annual amount is provided in the benefit to the beneficiary under the duty, and you can take it for three months to a year. This time, here the beneficiary does not get any maturity amount. After six months, you can withdraw the total amount.
  • In the Saral Pension Yojana, all the pensioners get 1000 rupees in a month and more than ₹ 12000 in the year.
  • This scheme is perfect for retired employees in government because your money is safe here, and government employees can get benefits in retirement under any system.


A retirement plan is essential for every person in today’s time as it is the only support for your old age. So that a person can run with his life during his pregnancy. Today we have given information about this pension plan to all of you through this article. I hope you all liked this information. You can ask for any information related to this by commenting in our comment section.


What is a pension plan?

Amount received as pension after retirement

When was Saral Pension Yojana launched?

1 April 2021

What are the types of Saral Pension Plans?

2 types

What are the benefits of a pension plan?

There is a benefit of financial assistance in the form of pension during old age.

From what age can a person start getting a pension?

60 years

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Rohit Mehta is an Indian Blogger-cum-Journalist, Author and Entrepreneur. He have been in digital marketing & IT sector for over 10 years, running his own digital agency, working for thousands of clients and projects.