What are Pension Funds in India: Meaning, Benefits and Working

What Are Pension Funds?

How Do Pension Funds Work?

What Are the Advantages of Investing in Pension Funds?

What Are the Tax Benefits in Pension Funds?

What Are the Disadvantages of Investing in Pension Funds?

How to Calculate Pension Funds?

FAQs about Pension Funds

What are the different types of pension funds?

The different types of pension funds are NPS (National Pension Scheme), PPF (Public Provident Fund), EPF (Employee Provident Fund), and Annuity plans that are accompanied by life cover.

What are some features of pension funds?

Pension plans offer guaranteed benefits once the investor retires. Investors will have a source of income once he/she retires. Secondly, most pension plans available in India are customisable. Also, Pension funds have flexible payouts, which means the investor can choose to get a monthly or an annual payout.

What is a ULIP?

Unit Linked Insurance Plan (ULIP) is an insurance plan that offers the benefits of investment as well. One can invest in mutual funds and get life insurance coverage through a ULIP. The premium for ULIP is divided into two categories. One part contributes to a life insurance plan, while the other half is used to invest in a fund of your choice.

What is the National Pension Scheme (NPS)?

National Pension Scheme is a tax-saving retirement fund introduced by the Government of India in 2004 for government officials. This scheme was further made public for non-government employees in 2009. NPS account allows account holders to earn a regular income via an annuity after retirement. They can also withdraw a large part of their investment as a lump sum.