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Sanjeev

Sanjeev Govila  |192 Answers  |Ask -

Financial Planner - Answered on Jul 27, 2023

BIKRAM Question by BIKRAM on Jun 12, 2023
Money

I am 56 completed and working in an MNC.With 3-4 years of active life left out , what type of Pension plan I can adopt. Please guide me. Bikram K.Giri

Ans: There are various types of pension plans available in the market like those offered by Insurance companies, National Pension Scheme and Mutual Funds.

Insurance offered pension plans could be Immediate Annuity Plan, Guaranteed Period Annuity Plan, Life annuity plan etc which generally offer assured income to you. However, the returns are very low and high taxability make them quite expensive. I feel that the lure of assured income does not fully compensate you for what you lose in the bargain.

I feel that using Mutual Funds to create retirement income is much better alternative since it gives you far greater flexibility of investment, withdrawal, changing course any time as per your requirements and very high tax-efficiency.

Before choosing an option for your retirement, I suggest you to consult with a good financial advisor for the best suitable advice.
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