Tax-savings through Pension Funds: Investment guide for March

Pension funds provides a good tax-benefiting investment, apart from a considerable social security. Pension Funds extends greater return at maturity, as it is a long term investment. Under pension funds, the retirement lump sum is highly determined by the performance of the fund invested in thus, subject to higher returns. 

Along with the choice of funds, the schemes also provide fund managers, who direct the investors, to make better investment decisions. Granted with an option to switch fund managers, pension funds provide a wide range of stocks, government bonds and other securities as their asset choice. It also allows the investors to make a conscious decision for themselves too.
 
The voluntary pension scheme, like the new pension scheme (NPS), regulated by the pension fund regulatory and development authority (PFRDA) allows a tax deduction of Rs 50,000 under section 80CCD for the 30 per cent tax bracket. While Rs 16,000 is valid for the 20 per cent tax bracket and Rs 5,000 for the 10 per cent tax bracket. Although, unlike public provident fund and the employee provident fund, pension funds do not provide tax benefits at withdrawal.   

The top pension plans for 2017 are: 

* Max Life forever young pension plan: 
This plan helps one to build a sizeable retirement corpus with a guarantee maturity benefit of 101 per cent on the premiums.

* Bajaj Allianz pension guarantee plan:
This plan provides a wide range of immediate annuity options to the investor. Besides offering a joint life last survivor with 50 per cent to the spouse and also a joint last survivor with 100 per cent annuity to the spouse. 

* Bajaj Allianz retire rich pension plan:
This plan is unit-linked deffered pension plan with guarantee vesting benefit along with the death benefit. 

* Max Life guaranteed lifetime income plan:
It is a non linked annuity plan offering guaranteed income after retirement, thus providing full security. The plan offers both single and joint life variant for a variety of annuity terms.  

* HDFC Life click 2 retire plan:
This plan is unit linked with minimal charges and market linked returns, providing multiple term options to choose from.