Retirement from work leads to a whole new transition in the way you live your life. However, if you are not prepared financially, the retirement can turn to be a nightmare. If you use your retirement corpus to meet daily expenses, within a few years, the corpus will be exhausted. Hence, it is extremely important to plan a regular stream of income during retirement. And Aditya Birla Sun Life Pension Plans can help one in achieving this goal. Aditya Birla Sun Life is a leading life insurance company that provides you with many choices of pension plans. You can choose the correct plan as per your financial conditions and requirements. Let us know the various pension plans.
Aditya Birla Sun Life Empower Pension Plan
The plan gives you the opportunity to start the premium payment from the young age of 25 years or above.
Eligibility
There is eligibility criteria regarding age and basic premium payment. Below is the snapshot to check your eligibility to avail Aditya Birla Sun Life Empower Pension Plan:
| Parameters | Minimum | Maximum |
| Entry Age | 25 Years | 70 Years |
| Vesting Age | 30 Years | 80 Years |
| Accumulations Period | 5 Years | 30 Years |
| Basic Premium (Paid Annually) | Rs. 18,000 | No Limit |
| Basic Premium(Paid Half-Yearly) | Rs. 24,000 | No Limit |
| Basic Premium(Paid Quarterly) | Rs. 30,000 | No Limit |
| Basic Premium(Paid Monthly) | Rs. 36,000 | No Limit |
Features and Benefits of Aditya Birla Sun Life Empower Pension Plan
- You have three options to select under this plan based on your risk profile. The investment options are aggressive, moderate and conservative investment plans.
- For an aggressive investment plan, the market linked return is expected to be the highest in the long-term, hence guaranteed vesting benefits are the lowest.
- For a conservative investment plan, the market linked return is expected to be the lowest in the long-term, hence guaranteed vesting benefits are the highest.
- For moderate investment plan, both kinds of returns are expected to be in between of aggressive and conservative type.
- For example, vesting benefit for 25 years of accumulation period is 105%, 122% and 140% for aggressive, moderate and conservative investment plans, respectively.
- In addition to vesting benefit, there are guaranteed yearly additions to your policy in the form of additional units at below rates:
- 25% of fund value from the 6th year of the policy
- 35% of fund value from the 11th year of the policy and
- 35% of the fund value from the 16th year of the policy
- On unfortunate death of the life assured, you are paid guaranteed death benefit or fund value, whichever is higher, to avail maximum value to the nominee of the policyholder.
- On vesting, you can withdraw 1/3 amount of the vesting benefit as computed value, that is tax-free for you. For balance 2/3 amount of the vesting benefit, you can buy the annuity to avail regular pension income.
- In the case of exigency, you will receive the surrender value ranging from 30% to 90% based on active years in the policy, subject to a minimum of three years of premiums are paid.
Aditya Birla Sun Life Immediate Annuity Plan
If you have a lump-sum amount in hand and want to generate regular pension income for a lifetime, this plan is for you. This plan is a single payment plan, keeping you worry-free from payment of monthly premiums. Instead, you can expect the regular pension income every month in your bank account.
Eligibility
Based on your age and basic premium payment, below are the eligibility criteria to enroll in Aditya Birla Sun Life Immediate Annuity Plan:
| Parameters | Minimum | Maximum |
| Entry Age | 30 Years | 90 Years |
| Purchase Price | It is decided based on annuity rate in such a way that you can receive Rs.1,000 monthly pension income. | No Limit |
Features and Benefits for Aditya Birla Sun Life Immediate Annuity Plan
The plan gives you six different choices that decide the amount of your pension income and the benefits to your spouse or nominee after your demise.
| Option -1 |
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| Option -2 |
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| Option -3 |
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| Option-4 |
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| Option-5 |
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| Option -6 |
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Aditya Birla Sun Life Empower Pension – SP Plan
This is a unit linked plan, aimed to utilize the accumulation period to generate sizable corpus from the equity market. Being a single premium plan, you don’t have to plan frequent premium payments.
Eligibility
The eligibility to enroll in the plan is based on certain criteria of age and minimum premium as below:
| Parameters | Minimum | Maximum |
| Entry Age | 25 Years | 70 Years |
| Vesting Age | 30 Years | 80 Years |
| Single Premium | Rs. 1 lakh | No Limit |
Features and Benefits of Aditya Birla Sun Life Empower Pension – SP Plan
- According to your risk profile, you can select any one of the three investment options for your plan: aggressive, moderate or conservative.
- Depending on the risk profile chosen, your guaranteed vesting benefits are assigned to the policy. The guaranteed benefits are highest in the conservative plan and lowest in the aggressive plan. However, market-linked benefits are expected to be highest in the aggressive plan in the long term.
- Over and above the guaranteed vesting benefit, there are guaranteed additions as below:
- From 6th year: 0.25% of the fund value per annum
- From 11th year: 0.35% of the fund value per annum
- From 16th year: 0.35% of the fund value per annum
- On vesting date, you can withdraw 1/3 of the vesting benefit as commuted withdrawal, that is completely tax-free. From balance 2/3 of the vesting benefit, you can avail annuity, to enable you to earn regular monthly pension income.
- On the unfortunate demise of the policyholder during the policy term, the nominee gets the higher value from below two options:
(1)Guaranteed Death Benefit or
(2) Fund Value.
How to Choose the Right Pension Plan?
After understanding the various pension plans by Aditya Birla Sunlife, it is important to know the factors that can help decide about the right plan. Some of the factors are:
Your Present Age
- If you are still in your 30s, you might not have a lump-sum corpus to buy the annuity. Nor you will need immediate pension income. Rather, it makes more sense to save a small amount regularly and invest in a pension plan that can give you an income when you reach the retirement age.
- If you are already retired, you might have received lump-sum funds in the form of gratuity, provident fund proceeds and other similar benefits from your employer. To prevent irregular use of your hard earned money, you can choose to buy the annuity out of your retirement proceeds and ensure lifetime income for yourself.
- Many times, after you avail your policy, in a few years, you may want to make top-up premiums intermittently when you receive lump sum amount like a yearly bonus. Many mid-age executives find such options more suitable for them.
Your Family Structure
- If you have dependents, you would like to ensure regular earnings for your nominees after your de
- The solo persons with no survivors would like to avail a higher monthly pension income when they are alive, because the death benefit is not useful for
- You might want to give the inheritance to your children after the demise of yourself and your spouse as a lump sum amount.
Premium Payment Method
- Some individuals are comfortable to pay monthly premium payment during the term of the policy.
- Many individuals do not want to manage monthly premium payments but would like to make lump sum payment and avail regular pension income.
- The plans for both kinds of individuals are different.
Annuity Pay-out
- The amount of pension income should be in line with your monthly expenses.
- You can use the online calculators to estimate your monthly expenses in your retirement years after considering inflation into account.
- Based on the need for monthly income in future years, you can derive the optimum premium payment during your policy terms to arrive desired pension income.