Pension Plan: How to choose

Follow these steps to choose a pension plan with confidence.

1. Estimate your retirement need. Use the retirement calculator to find the corpus you need.
2. Decide the split. Many retirees combine an annuity for essentials with growth assets for inflation protection.
3. Choose the annuity option. Joint-life suits couples; return-of-purchase-price leaves a legacy at lower income.
4. Compare guarantee features. Check what is guaranteed and from when.
5. Think about inflation. A fixed annuity loses real value over time. Consider an increasing annuity option or keep part invested.
6. Plan early. Starting at 30 requires far smaller contributions than starting at 45.

Questions to ask before you buy

• What is excluded or limited, and for how long?
• What exactly is guaranteed and what is not?
• How are claims made, and how long do they usually take?
• What happens if I miss a payment?
• Can I cancel in the free-look period, and what is refunded?
• How will this plan change as my life changes?

Use our tools

Retirement Corpus Calculator Pension Income Estimator Inflation Impact Calculator SIP Growth Calculator Policy comparison scorecard