Today sadly, there is no pension plan which meets all your requirements. For example Templeton and UTI (both asset management companies) have a pension plan – and it is a one size fits all type of a plan. Typically a pension plan should have various options at the ACCUMULATION stage – when a person is 23 years of age he/she could be in 100% equity and when he is 55 he may want to be say 70% in debt. So typically it should offer various options at say 100% equity, 80% E, 60% and 30%. Similarly at the time of withdrawal the 65 year old, the 70 year old and the 85 year old may want different options.

Alas such options are not available. In fact not even a SINGLE pension product (disbursal stage) is available from the mutual fund industry, and that is a real big tragedy.

The Chairman of SEBI occasionally makes a noise that Mutual funds should ‘bring pension products’.

To me this is complete humbug. There has to be some clarity among the regulators about who will regulate what! If a mutual fund has a pension plan will PFRDA make norms for it? If a life insurance company has a pension plan without a life cover attached, should they be allowed to launch it at all? What is the role of IRDA if the ‘product’ call is taken wrongly by another regulator…these are all issues which the govt. will have to resolve BEFORE making holistic statements.

By the way I am convinced that there is no pension plan with the life insurance companies which inspires you to lock in the money for 60 years….


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  1. Hello Subra Sir,

    They also have multitudes of Child Education plans with more or less the same description.
    I guess next series will be children’s marriage plans.


  2. Hi Subra,

    I just bought a pension plan from the post office department,

    The scheme of things are as follows :
    Cash Outflow : For my age, i.e. 27 years : Pay Rs 2350 per month or Rs 27636 per year (2 % discount if you pay once for the entire year), I will have to continue to pay the same amount till I turn 60, i.e. for 33 years.

    Benefits :
    Insurance : In case of death, my nominee with get 10 lakhs + 70000 X number of years i have paid the premium.
    so for example if i die say at the age of 33, my Nominee will get 10 lakh + 70000 x 7 = 1490000.

    Maturity : At the age of 61 I will get (If I am alive) Rs. 10lakh + 70 K x 33 (the number of premiums i have paid) = Rs. 33 lakh 10 tousand (tax free).

    Even if i neglect tax benefits i get out of it, the returns will be of around 7 % + a life insurance policy (details of which are mentioned above).

    What do you think about this as a pension plan, how would you rate it.

  3. Child Plans!!!. I think all are observing the latest Child Plans ads of an Insurance company which sentimentally blackmails people to go for a Child plan 🙂

  4. Hi @Sameer Hirani

    can you please give me some link related to the NPS scheem with postal department you were talking about?

  5. Hi @Sameer Hirani

    can you please give me some link related to the NPS scheem with postal department you were talking about?

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