Types of Pension Funds in India

List of the Different Types of Pension Funds

FAQs about Types of Pension Funds in India

When is the best time to start investing in a pension fund?

It is best to start investing in pension funds as soon as possible. The returns you will receive from early investing will be significantly high due to the power of compounding. It is possible to start investing in small amounts and then gradually increase the amount.

Do pension funds have any tax benefits associated with them?

Yes, under Section 80C of the Income Tax Act 1961, you can get tax deductions for availing a new pension fund or renewing an existing one. Their maturity amount is free of tax, while the annuity is subject to taxation.

How much should one invest in a pension plan?

The amount that people should invest in a pension fund entirely depends upon factors such as their lifestyle, financial dependents, income levels, and health conditions, amongst many more. One can use various pension plan calculators available online to estimate the right amount to invest.