Written By: Himanshu Kumar

Himanshu Kumar

Term & Life Insurance

Himanshu is a content marketer with 2 years of experience in the life insurance sector. His motto is to make life insurance topics simple and easy to understand yet one level deeper for our readers.

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Reviewed By: Gaurav Patidar

Gaurav Patidar

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Updated on Mar 05, 2025 10 min read

What is a Pension Plan?

A pension or retirement plan is an investment option that helps you save a lump sum amount to fulfill your financial goals. To get maximum benefits post-retirement, you must regularly invest in a pension plan during your employment years. A suitable pension plan helps you when you are not earning any income, especially in your 60s to 90s.

At present, the insurance sector offers some of the best pension plans in India that help you lead a financially secure life post-retirement. For your convenience, we have listed the top 10 pension plans that you can choose from.

How Does a Pension Plan Work?

To give you better clarity and understanding of how a retirement pension plan works, let’s take a look at a simple illustration. 

Mr. Sharma, a 35-year-old businessman earns Rs 30 lakh annually. He realized that he needed to invest some money to plan his retirement years. So he bought the HDFC Click 2 Retire Plan with a premium of Rs 1 lakh, 20-year policy tenure, and 10-year premium payment term.

He has to pay the premiums till 45 and his policy matures once he reaches 55. 

At 55 he will receive a maturity amount of Rs 13,10, 944.

Top 10 Pension Plans in India

Choosing the right pension plan to secure your post-retirement period offers you a financial safety net. We have curated a list of the top 10 pension plans so that you can make the right choice. 

• LIC New Jeevan Shanti
• HDFC Life Click 2 Retire
• SBI Life Saral Retirement Saver
• ICICI Pru Easy Retirement
• Axis Max Life Guaranteed Lifetime Income Plan
• Bajaj Allianz Lifelong Goal
• Kotak Premier Pension Plan
• ABSLI Empower Pension Plan
• Tata AIA Life Insurance Guaranteed Monthly Income Plan
• IndiaFirst Life Guaranteed Annuity Plan

Note: All details of the products have been sourced directly from the official websites of the pension plan providers. The list should not be construed as definitive, considering that benefits and annuity payouts tend to vary per individual factors such as age, gender, income, sum assured/invested, and market volatilities (in the case of ULIPs).

Overview of Top 10 Pension Plans in India

To have a better understanding of the top 10 retirement plans in India we have provided a short overview to help you choose the best-suited pension plan in India. For further details, you can refer to the plan brochures on the companies’ websites or reach out to us at PolicyX.com.

1. LIC New Jeevan Shanti Plan

   The LIC New Jeevan Shanti insurance is one of the best pension plans that offers the benefit of returns through Deferred Annuity options. You can avail of this policy through online as well as offline mode. Under this plan, the payout modes of a Deferred Annuity are divided into two options - Joint Life Annuity and Single Life Annuity.

   Key Features of LIC New Jeevan Shanti Plan

   • By making a one-time investment, you can avail of a long-term source of income.
   • Policyholders can avail of add-on cover for dependent people with disabilities under the plan.
   • The plan offers a discount on annuity rates.
   • Policyholders can choose from four annuity modes- monthly, quarterly, half-yearly, and annually.

2. HDFC Life Click 2 Retire Plan

   The HDFC Life Click 2 Retire insurance plan is a unit-linked online insurance plan that offers market-based returns and also assists the insured in meeting post-retirement needs. There is a risk factor associated with this plan as your returns are based on real-time market performance.

   Key Features of HDFC Life Click 2 Retire Plan

   • The plan provides a death benefit that would be higher than the fund value or by 105% of the paid premiums.
   • The plan offers vesting benefits and no premium allocation charges can be imposed.
   • Policyholders can avail of tax benefits under section 80C of the Income Tax Act, 1961.
   • Option to start as early as 18 years.

3. SBI Life Saral Retirement Saver

   It is a participating, individual, non-linked, savings pension product. SBI Life Saral Retirement Saver helps policyholders create an income source during retirement.

   Key Features of SBI Life Saral Retirement Saver

   • Corpus can be built with a simple reversionary bonus, added regularly throughout the policy term.
   • Life cover can be availed with SBI Life - Preferred Term Rider.
   • Policyholders can avail of maturity and death benefits.
   • Policyholders can avail of tax benefits under section 80C of the Income Tax Act, 1961.

4. ICICI Pru Easy Retirement Plan

   ICICI Pru Easy Retirement Plan is an investment plan that helps you build a retirement corpus as per your risk appetite. This plan protects your savings from market downtrends with guaranteed assured benefits. 

   Key Features of ICICI Pru Easy Retirement Plan

   • The plan offers multiple payment frequency modes such as monthly, bi-annually, and annually. Premiums can be paid yearly, half-yearly, or monthly.
   • The death benefit is equivalent to 105% of the total premiums paid.
   • With this pension policy, policyholders can reduce their taxable income.
   • Protect your savings from market downturns through an Assured Benefit.

5. Axis Max Life Guaranteed Lifetime Income Plan

   The Axis Max Life Guaranteed Life Income Plan is a traditional Pension Plan that assists policyholders in building a corpus toward a regular income post-retirement.

   Key Features of Axis Max Life Guaranteed Lifetime Income Plan

   • The plan keeps on providing a pension until you and your spouse are alive.
   • In case of the death of the insured, the plan provides the entire purchase price to the nominee.
   • You can receive a pension on a monthly, quarterly, semi-annual, or annual basis.
   • The plan offers six annuity options.

6. Bajaj Allianz Lifelong Goal

   Bajaj Allianz Lifelong Goal is a unit-linked, whole life cover that helps in creating a savings corpus and earning income till the age of 99.

   Key Features of Bajaj Allianz Lifelong Goal

   • The plan offers guaranteed loyalty additions.
   • Policyholders are assured an income stream till 99.
   • Policyholders can also benefit from the periodical return of life cover charges.
   • Policyholders can avail of tax benefits under Section 80C & 10(10D).

7. Kotak Premier Pension Plan

   Available online, Kotak Premier Pension Plan is a traditional, participating pension option for individuals looking to secure their retirement.

   Key Features of Kotak Premier Pension Plan

   • The plan offers guaranteed additions and accrued bonuses.
   • Policyholders can choose from multiple premium payment modes.
   • Assured benefit is calculated as 105% of total premiums paid on death/vesting.
   • Additional protection against accidental death and disability can be availed.

8. ABSLI Empower Pension Plan

   The Aditya Birla Sun Life Empower Pension is a unit-linked and non-participating pension plan. The plan helps you to build a financial corpus for the post-retirement days.

   Key Features of ABSLI Empower Pension Plan

   • The policy offers vesting benefits and additions to your sum assured.
   • The death benefit payable is calculated as the guaranteed sum assured or the policy fund value at inception, whichever is higher.
   • The plan offers a self-managed option that allows you to choose the desired fund option as per your risk appetite.
   • Guaranteed additions are provided in the form of additional units.

9. Tata AIA Life Insurance Guaranteed Monthly Income Plan

   The Guaranteed Monthly Income Plan offered by TATA AIA is a non-participating, non-linked, individual life insurance savings option. It helps you create a financial net to fall back on in the future.

   Key Features of Tata AIA Life Insurance Guaranteed Monthly Income Plan

   • It offers monthly income for up to 288 months post-retirement age.
   • Monthly income increases on paying a high premium amount.
   • Policyholders have the facility to avail loans against their policy.
   • Premiums can be paid annually, half-yearly, quarterly, or monthly.

10. IndiaFirst Life Guaranteed Annuity Plan

    It is a deferred life annuity plan, under which policyholders can pay a single premium and receive lifelong benefits. The plan allows policyholders to choose from 12 different annuity options per their needs.

    Key Features of IndiaFirst Life Guaranteed Annuity Plan

    • The return of the purchase price facility can be made upon the policyholder’s death.
    • Joint life cover offers policyholders the option to support their loved ones under the cover.
    • The annuity amount grows constantly with the Escalating Life Annuity option.
    • You can purchase this policy online, at your convenience.

Benefits of Buying a Retirement Pension Plan

Doing your retirement planning in your 20s or probably 30s is one of the wisest decisions you can make for yourself and your family. There are various benefits to buying the best pension plan in India. Let’s understand these benefits in detail so that you can make an educated choice.

Who Should Buy A Pension Plan?

The following individuals should consider buying a pension plan:

Basis for Selection of the Best Pension Plan

The above-mentioned insurers have been selected based on the highest income in terms of annual new business premiums.

The following table highlights these insurers and the premium income generated by them in FY 2022-23.

To sum it up

Before choosing a specific pension plan, you should consider your requirements, future goals, and financial plans. Make sure that the opted plan aligns with your goals. If you are the sole earning member of your family right now, or you have certain debt obligations to fulfill, or your kids’ education to plan, the pension amount should be more than all your potential expenses combined.

While market-linked investment options incur higher purchase prices, these plans are more likely to guarantee a larger corpus. However, if you are averse to risks and wish to remain protected from market volatility, a traditional savings/annuity plan is a good place to start. 

For more guidance on pension or retirement planning, visit PolicyX.com.

Or schedule an appointment with us online at your convenience.

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