After retirement elderly citizens desire peaceable life and to live with self worth...
Just only wish is enough, must save money needed for this. Proper schemes should be followed, for this purpose from the beginning onwards should be invested in growth promoting policies. Some mutual fund companies keeping this in mind affording pension policies for investors.
Presently only limited are available. Templeton India pension plan (TIPP) UTI retirement benefit pension fund are the examples. To contribute income after retirement are these policies about, It works without loss to risk like debt funds and balanced funds and in equity investments it is limited to 40 percent.
In balanced funds, equity investments are 65-70 lesser, at once investment can be done in pension policies. or can be invested regularly like SIP.
How it works?
No difference between mutual fund policies and pension policies except the name. Investments for prolonged periods only yields good income and until 58 years taking back of money is not allowed where after retirement can take off amount at a time or can commence monthly income according to once wish.
After 58 years can take off everything, else like annuity policies can get pension. Opportunity for Systematic withdrawal plan (SWP) is provided also. In second case for total income in units is traded to investors. annually once in 3 months / Monthly which should be decided by the investor.
How Good are they?
Both good and bad are present like any other policies, and it encourages to invest carefully to afford income after retirement. In longer run, since 40 percent is given to equity fair chances are there for yielding good income.
At the same time, if individual wish to take back the investment in halfway, it charges up high. It is hard to pay tax on the acquired income. But if we carry on for longer period influence of tax is negligible. According to 80C regulation income laws paying tax is exemption is available. To claim tax free income like wise in other policies, investment should be carried on for 3 years.
Intended for whom?
This are bit different from normal pension policies. PPF, NNC, tax free fixed deposits are completely safe. But the income levels is between 8-9 percent only. If we expect money in longer run this income is not enough. If we contribute some part to equity compared to traditional policies income yield is more, though risk to loss is present. This policy is suitable for individuals with capacity for some risk.
Just only wish is enough, must save money needed for this. Proper schemes should be followed, for this purpose from the beginning onwards should be invested in growth promoting policies. Some mutual fund companies keeping this in mind affording pension policies for investors.
In balanced funds, equity investments are 65-70 lesser, at once investment can be done in pension policies. or can be invested regularly like SIP.
How it works?
No difference between mutual fund policies and pension policies except the name. Investments for prolonged periods only yields good income and until 58 years taking back of money is not allowed where after retirement can take off amount at a time or can commence monthly income according to once wish.
After 58 years can take off everything, else like annuity policies can get pension. Opportunity for Systematic withdrawal plan (SWP) is provided also. In second case for total income in units is traded to investors. annually once in 3 months / Monthly which should be decided by the investor.
How Good are they?
Both good and bad are present like any other policies, and it encourages to invest carefully to afford income after retirement. In longer run, since 40 percent is given to equity fair chances are there for yielding good income.
At the same time, if individual wish to take back the investment in halfway, it charges up high. It is hard to pay tax on the acquired income. But if we carry on for longer period influence of tax is negligible. According to 80C regulation income laws paying tax is exemption is available. To claim tax free income like wise in other policies, investment should be carried on for 3 years.
Intended for whom?
This are bit different from normal pension policies. PPF, NNC, tax free fixed deposits are completely safe. But the income levels is between 8-9 percent only. If we expect money in longer run this income is not enough. If we contribute some part to equity compared to traditional policies income yield is more, though risk to loss is present. This policy is suitable for individuals with capacity for some risk.
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