Retirement and Pension plans
Slide 2: What is Retirement Planning?
Retirement planning is the process of preparing for life after full-time work. It involves saving and investing while you’re earning, so
you can support yourself when you’re no longer working. The goal is simple — to maintain your lifestyle and remain financially
independent during your later years of your life.
Slide 3: Types of Retirement Plans
There are three major types :
Employees’ Provident Fund (EPF) is mandatory for salaried individuals, with both the employer and employee contributing a fixed
percentage. The interest is tax-free, and so are the withdrawals after retirement.
Public Provident Fund (PPF) is a government-backed savings scheme, offering tax benefits and attractive interest rates, making it a
popular choice for long-term savings.
Then we have National Pension System (NPS), a voluntary scheme where you can choose between equity and debt investments. It’s
not just a pension, but a way to benefit from market growth.
Slide 4: Pension Plans Overview
What is pension?
A pension is a regular payment made to individuals after retirement, typically provided by the government, employer, or private
institutions. It helps support financial needs when a person is no longer working. Pensions are often funded through contributions
made during one’s working years.
There are also specific pension schemes designed to help individuals save for retirement.
Atal Pension Yojana (APY) is targeted at workers in the unorganized sector, offering guaranteed monthly pensions once you turn 60.
Pension Plans by Insurance Companies come in two types: Immediate Annuity Plans, where you start receiving payouts right away,
and Deferred Annuity Plans, which start once you reach a certain age.
Finally, Voluntary Provident Fund (VPF) allows you to save even more than the EPF contribution, increasing your retirement corpus
while enjoying tax benefits.
Slide 5: Key Government-Backed Schemes
Some government-backed schemes are designed for specific groups.
Atal Pension Yojana (APY), as mentioned, helps individuals in the unorganized sector. It’s an easy way for them to ensure a steady
income after retirement.
Senior Citizens Savings Scheme (SCSS) is ideal for those over 60, offering guaranteed returns with quarterly payouts. This is a great
option for senior citizens who want a reliable income post-retirement.
Slide 6: Why Start Planning Early?
Starting your retirement planning early has significant advantages.
Compounding — the earlier you start, the more time your money has to grow. This can lead to a significantly larger retirement corpus.
You also benefit from tax exemptions under most of these plans.
Planning ahead ensures you’re not financially dependent on others, and it helps combat inflation, especially with market-linked
options like NPS. So, the earlier you begin, the better your financial security in the long run.
