Exploring Different Pension Schemes In India

Pension Schemes In India
To Conclude

One of the major reasons why retirement can be worrisome for people is the financial instability, because of an individual not being able to make a living. People often invest in different pension schemes to ensure a financially independent life post retirement. During such circumstances where it is difficult to ensure a regular source of income pension schemes can act as a shield.

Government has launched several schemes through which an individual can ensure his/her financial independence after retirement. Pension schemes are designed to provide financial coverage to an individual so that he/she is able to maintain a healthy lifestyle after his/her retirement.

Pension Schemes In India

Below mentioned are some pension schemes designed by the government of India:

1. National Pension Scheme

National Pension Scheme was launched in 2004. This scheme was specially designed to provide financial protection to the senior citizens in their post retirement phase of life. This scheme allows an individual to make contributions to their account and avail the payouts of annuity after retirement. Partial withdrawals are allowed under this scheme which can help an individual to fulfill their immediate financial expenses.

2. Atal Pension Yojana

Atal Pension Yojana aims to provide pension benefits in exchange of minimum contributions every month. This scheme is specifically designed for the people from the unorganized sector and provides them financial security from the risk of working in this sector. This plan is considered a social security scheme which encourages the workers from the unorganized sector to create a corpus for their retirement with small contributions.

3. Pradhan Mantri Vaya Vandana Yojana

Pradhan Mantri Vaya Vandana Yojana provides financial independence to an individual post retirement by offering an assured rate of return on the investments made. This scheme is offered by Life Insurance Corporation of India (LIC) and promises to provide returns for 10 years.

4. Indira Gandhi National Old Age Pension Scheme

Indira Gandhi National Old Age Pension Scheme is also known as National Social Assistance Programme. This scheme was introduced in 2007. This scheme plays an important role in providing financial security to an individual while also encouraging economic growth in certain crucial areas of our society. Indira Gandhi National Old Age Pension Schemes aims to provide social and financial security by providing senior citizens pension, pension for disabled people and widow pension.

5. Employee Pension Scheme

Employee Pension Scheme (EPS) was introduced by the government of India in 1995. Aim of this scheme is to provide financial security to the employees. This scheme provides pension to the employees who work in the organized sector after the age of 58 years of age after their retirement.

To Conclude

Pension schemes can help a person ensure regular financial income and their financial independence after their retirement. A person can fulfill their immediate financial needs, medical expenses and maintain a healthy lifestyle post retirement.

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.