Guide to Buying a Guaranteed Pension Plan Online in India (2025)

A guaranteed pension plan aka annuity or assured pension plan provides you with much-needed financial stability after retirement. It can either be through a substantial corpus or be in the form of a regular income or both. With the best pension plan, you can save for your future lifestyle and medical expenses. More details about how to select a pension plan in India have been provided below.

Benefits of A Guaranteed Pension Plan

This power of compounding increases when the investment period increases. So, when you start investing from a young age for retirement, you have an additional advantage. Some of the key benefits of investing in a guaranteed pension plan are given below:

1. Flexible Options

   Guaranteed pension plans are for individuals who want to secure their life after retirement. The investors can receive the accumulated corpus as a lump sum post-retirement or use it to generate regular payouts. The best retirement plans allow you to customise the plan as per your retirement planning.

2. Acts As a Contingency Fund

   Apart from these benefits, some retirement plans also act as a safety net by covering expenses during an emergency. Guaranteed pension plans also offer multiple annuity options, allowing you to create payouts matching your requirements.

3. Lets You Choose Your Retirement Date

   With an advanced guaranteed pension scheme, you can choose your retirement date. If an unfortunate event prevents you from availing of the guaranteed pension plan benefits, they shall be payable to your nominee. Thus, such a pension-guaranteed plan helps you manage your expenses post-retirement easily.

4. Offers Tax Benefits

   A guaranteed pension scheme also lets you avail of tax benefits up to Rs. 1,50,000 per year. The regular income you earn from it is also exempt from taxation according to Section 10 (10A) of the Income Tax Act, 1961.

Types of Annuity Plans in India

Here are the types of annuity plans that you must choose while applying for a guaranteed pension plan:

1. Immediate Annuity Scheme

   This plan allows you to start receiving a pension immediately (usually a month after investment), and therefore, it is suitable for retired individuals and those nearing retirement.
   
   Many options are available under the immediate annuity scheme. For instance, you can choose a lifetime annuity for you or you and your spouse. You can also select a lifetime annuity for yourself and the nominated member will get the accrued investment after your demise.

2. Deferred Annuity Plans

   Deferred annuity plans allow you to earn a stable income after a fixed period. These plans are for people in the mid-stage (30 to early 50’s) of retirement and want to earn a fixed income after 5, 10, 15, or 20 years. This pension plan also allows you to invest a fixed lump sum amount once or pay monthly or yearly premiums.

3. Lifetime Annuity

   Lifetime annuity plans ensure you receive a regular month as long as you live. You can opt for a higher salary after retirement by not choosing a return of premiums paid or opt for a lower salary with the premium return.

4. Joint Life Annuity Plans

   This type of annuity plan ensures that you receive a pension for lifetime. After your demise, your spouse will continue to receive either full or partial pension depending upon the choice made at the time of application.

Steps To Buy a Guaranteed Pension Plan in India

Follow these steps to buy a guaranteed pension plan in India without any hassles:

• Step 1: Analyse your pension plan goals beforehand by considering factors such as your age, expected retirement age, income, etc. Use a retirement calculator to get a fair idea on how much you should be saving to attain your goals.
• Step 2: Go through different types of guaranteed pension plans in the market. Evaluate their policies and terms carefully before selecting the best pension plan according to your retirement goals.
• Step 3: Visit the bank branch to improve your understanding of the specific guaranteed pension plan. Alternatively, you can visit the bank’s official site and read all the policy-related documents.
• Step 4: Once you understand the retirement plan, fill out the form offline or through online means. Choose if you want to make a one-time investment or pay monthly or yearly premiums that suit you.
• Step 5: Select the annuity option that suits your post-retirement requirements. Provide details of the nominee as well.
• Step 6: Fill out the form and submit it with the required documents. Once the bank processes your application for the guaranteed pension plan, you will be eligible for the applicable benefits. For more details, contact a retirement income planner at your nearest branch.

Conclusion

A guaranteed pension plan helps you manage your expenses smoothly after retirement. However, you also need to have clear retirement goals and invest in the right assured pension plan. With the PNB MetLife Guaranteed Pension plan, you get these benefits:

1. Income ranging from 35.35% to 219.42% of annualised premium
2. Option to choose income plus boosters to ensure regular bonus payments along with income.
3. Option to choose from endowment, income, income plus lump sum, and income plus booster benefits.

Visit their website now and choose the best pension plans for your retirement!

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