Topic: About a pension calculator or pension plans comparison tool I want to find out the best pension plan

Please explain

This message was edited 1 time. Last update was at 14/10/2009 10:35:04

There are very few retirement planning options available in mutual funds. At present, two funds, UTI Retirement Benefit Plan and Franklin Templeton Pension plan fill the retirement mutual fund void. Both these schemes come equipped with Section 80C benefits and are therefore, on this count, at par with other retirement planning options like PPF, PF etc. Both the UTI Retirement Benefit Plan (RBP) and Franklin Templeton Pension Plan (KPPP) allow the investor to plan for retirement, making it possible for him to receive regular income after retirement. Before an investor goes in for a http://www.itrust.in/forum/posts/list/881.page">retirement plan he needs to evaluate its various basic parameters:

Returns – In this case the comparison of returns vis a vis the fixed return instruments like PPF etc. is easy. The returns generated in the case of PPF is again, like Infrastructure Bonds, a fixed rate of 9.5 per cent unlike the returns of pension plans which can vary over a period of time. Also when it comes to comparing the returns between the two mutual fund options the investor must keep in mind, the track record of the scheme as well as his timing of entry. Both these factors will impact his return. However, in the case of infrastructure bonds, returns are fixed, irrespective of the time of entry.

Lock in period – In case of fixed return instruments like PPF etc, the lock-in period is very long, with intermediate withdrawals after a certain number of years. In case of infrastructure bonds as well as pension funds the there is a 3 year lock-in period but in case of Franklin Pension plan the withdrawal at the end of 3 years comes at a nominal penal charge.

Liquidity - In PPF, the liquidity is pretty low. A loan can be taken at the end of 3 years but even that is only to the extent of 25 per cent of the balance at the end of the preceding financial year. A withdrawal is permissible every year from the 7th financial year of the date of opening of the account. So, the loan and the withdrawal can be taken after a specified period of time and that too with certain riders. In the case of Franklin Pension plan, the entire amount is withdrawable after the expiry of three years subject to a penal charge, otherwise the investor can exit only after reaching 58 years of age.

Rebate Eligibility –The tax benefits under both the PPF and the pension plans is the same in terms of the section 80C benefit which makes the investor eligible for tax benefits of 20 per cent of the amount invested in the scheme.

Without certain basic details like age, retiring age, current income, pension desired etc. it is difficult to suggest proper pension planning.

I am a certified Associate of Insurance insitute of india. If interest to more as to what planning you need, you can email me.

Without going into details, you can check out the link below to get details on retirement planning.

http://khotapaisa.wordpress.com/category/retirement-planning/

This message was edited 1 time. Last update was at 08/09/2009 09:29:57

Hi,
Here is an online tool which I would like to recommend you which helps people to plan insurance according to their need & budget especially in retirement plans. It also helps you to calculate pension which you would gets after retirement.

Anonymous wrote:

Kindly let me a scheme that can fetch Rs 10000pm and my present age is 56 yrs kindly let me know which scheme will be better and how much i have to pay per month.

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