Mutual Fund, EPS, NPS: Private Sector Employees Can Invest In These Pension Plans To Secure Post-Retirement Life

A range of pension plan options has been designed for private sector employees that can pave the path to a secure post-retirement future.

New Delhi: Every employee – be it private sector or public sector – wants to have a secured post-retirement life. As the golden years approach, every employee wants to secure a comfortable and financially stable retirement. Just like their government counterparts, private sector employees may not be able to enjoy the same level of retirement benefits. However, they can make wise decisions by investing in some pension plans that will give them high returns.

A range of pension plan options has been designed for private sector employees that can pave the path to a secure post-retirement future. Check list here:

Mutual Funds

Private sector employees can make their retirement corpus strong with strategic investments in mutual funds. These equity-linked savings schemes (ELSS) not only offer tax benefits but also hold the potential for substantial returns. Moreover, systematic investment plans (SIPs) enable disciplined, regular contributions, amplifying the retirement fund.

Employees’ Pension Scheme (EPS)

A part of the Centre’s Employees’ Provident Fund (EPF), the Employees’ Pension Scheme is a lifeline pension plan for private sector employees who are EPF members. This pension plan offers returns based on years of service and salary history, and also provides financial cushion in retirement.

National Pension System (NPS)

A long-term retirement savings scheme, the National Pension System empowers private sector employees to build a robust retirement corpus. Interestingly, the NPS investments span diverse asset classes, promising attractive returns. When you retire, a portion of the corpus can be withdrawn as a lump sum, while the remainder can be used to secure an annuity for a regular pension income.

Private Pension Plans

Apart from the above schemes, the private insurance companies extend a helping hand with pension plans exclusively for private sector employees. These amazing plans offer flexibility and customisation, allowing policyholders to choose between immediate or deferred annuity plans based on their preferred pension payout timeline.

Public Provident Fund (PPF)

You can make Public Provident Fund a pivotal component of retirement planning as it presents a secure and tax-efficient avenue for long-term savings. These PPF accounts have a lock-in period and offer the prospect of a steady income stream after maturity.

Guaranteed Returns

Apart from all these plans, there are some insurance companies which offer pension plans that guarantee fixed returns, ushering in financial security post-retirement. These plans provide assurance and peace of mind for policyholders.