When a person is young, i.e., in their 20s or 30s, he or she is probably the most energetic and passionate. They can work hard and work for a long stretch during this period. As a result, they also tend to earn more and become more successful.
However, as one approaches retirement, their reflexes start to slow down, and working capacity decreases. In India, the official age for retirement from a Government job is 60 years. However, you can even take your retirement at an early age, depending on how well you plan for it.
Retirement is the time when you can finally sit back and enjoy after years of hard work. However, you need to remember that in the absence of a regular income, you may need some sort of financial support to ensure that your post-retirement life does not become a burden.
The best thing that you can do to ensure a stable financial life after your retirement is to invest in an old-age pension plan during your working years. A pension plan can help you accumulate money for your retirement life while you’re working and then, receive a regular stream of income after your retirement. This way, you can secure your as well as your family’s financial future.
Continue reading to understand how you can apply for an old-age pension plan , what is the age pension eligibility, and how you can check your old-age pension online.
An old-age pension plan is an investment plan that allows you to invest a regular part of your savings in it for your retirement. You can invest in a pension plan for 20 to 30 years during your working life. And then, during your post-retirement life, the money accumulated in it is used to provide you with a regular stream of income (known as Annuity benefits) for you and your spouse.
You will also get returns on your money invested in a pension plan. These returns can be fixed or market-linked, depending upon the type of pension plan chosen by you. To know the total corpus that you’ve accumulated, you can check your old-age pension status anytime during your working years.
National Pension Scheme, or NPS, is the most common old-age pension plan available to Indian citizens. This plan is regulated by the Central Government of India through a Pension Fund Regulatory and Development Authority (PFRDA).
Under this plan, you can invest your money into one of the seven pension funds that are managed by the PFRDA fund managers. These managers usually invest your money in Government bonds, bills, shares of companies, and corporate debentures. Investments made in these funds accumulate and grow over time, depending on the returns earned.
Apart from the National Pension Scheme , there are several other old-age retirement plans in India where you can invest your money for your retirement. These may include Government-based as well as private pension plans, such as Atal Pension Yojana (APS), Pradhan Mantri Vaya Vandana Yojana (PMVVY).
You can invest in an old-age pension plan online from the convenience of your home. Here is a step-by-step guide to investing in a pension plan:
At times, you may feel the curiosity to check your old pension status to know how much money you’ve accumulated till now and what are the returns that you’re getting on them. You can check your old age pension status online by following a few simple steps mentioned below:
If you’ve invested in the National Pension Scheme and wish to check your NPS balance, you can do so by visiting the NSDL portal and logging in using your ID and password provided . It allows you to check your total pension corpus and its current valuation based on the fund manager chosen by you.
Planning for your retirement should form a crucial part of your annual financial planning. You must start your retirement planning by investing in a pension plan as soon as you start earning. This way, you will be able to accumulate a large corpus for your retired life and can spend the golden years of your life peacefully.
With Tata AIA life insurance , you can secure your future most conveniently. You can choose the right pension and retirement plans so that you are financially secure in the golden years of life. All the plans are available on our website, and you can choose the one that is right for you.
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