Retirement planning plays a key role in the journey towards a financially secure future. Various companies are offering different “Annuity plans” which can help you in maintaining your pre-retirement lifestyle even after your retirement.
In today’s blog post, we will give you an overview of the best “Annuity Plan” in India 2025.
What are Annuity Plans?
Annuity plans are an investment tool that generally offer regular income for an individual after a certain period of time, typically after retirement, in return for a lump-sum payment. The regular stream of payment can either be started immediately or can be started at a later stage. These plans are generally opted for by individuals who are nearing retirement or have retired.
Best Annuity Plans in India 2025
The following are the best Annuity Plans in India 2025:
- Aditya Birla Sun Life Immediate Annuity Plan
- Aviva Annuity Plus
- Canara HSBC Pension for Life Plan
- Exide Life New Immediate Annuity Plan
- Future Generali Immediate Annuity Plan
- HDFC Life Pension Guarantee Plan
- ICICI Prudential Immediate Annuity Plan
- IDBI Federal Guaranteed Lifetime Income Plan
- PNB Metfile Immediate Annuity Plan
- Bajaj Allianz Guaranteed Pension Goal
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Overview of Best Annuity Plans in India 2025
A brief overview of the best Annuity Plans in India 2025 is as follows:
1. Aditya Birla Sun Life Immediate Annuity Plan
Aditya Birla Sun Life’s Guaranteed Annuity Plus (Immediate Annuity variant) is a non-linked, non-participating annuity plan that gives retirees regular and guaranteed income immediately after they purchase it. With this plan, you pay a single premium (lump sum) and then get regular payments for the rest of your life. These payments can be monthly, quarterly, half-yearly, or yearly.
2. Aviva Annuity Plus
The Aviva Annuity Plus Plan is a single premium immediate annuity plan which is not linked and non-participating. It is a popular retirement option because you can make a single investment and start getting a guaranteed, lifelong income immediately. The plan offers flexibility and has seven different annuity options to meet different needs. These include a simple Life Annuity, options that guarantee the annuity for a set period of time (5, 10, or 15 years) even after the annuitant dies, and an increasing annuity at a 3% simple rate to protect against inflation.
3. Canara HSBC Pension for Life Plan
The Canara HSBC Pension 4Life Plan has several annuity options, such as immediate and deferred annuities, so people can choose the one that best suits their retirement needs. This plan’s goal is to give people peace of mind and financial security during their retirement years. It also offers options for joint-life coverage, return of the purchase price, and increasing annuity benefits to keep in line with inflation.
4. Exide Life New Immediate Annuity Plan
This annuity plan also offers you guaranteed lifetime income based on a single lump sum investment. The plan provides flexibility according to individual and family needs by offering a range of annuity options, such as single-life and joint-life variants, with or without the return of purchase price.
5. Future Generali Immediate Annuity Plan:
A retirement income option called the Future Generali Immediate Annuity Plan aims to offer lifetime financial stability through a guaranteed income stream, which begins immediately as a one-time lump sum investment is made. It helps people who want to immediately turn their savings into a reliable income after retirement.
6. HDFC Life Pension Guarantee Plan
HDFC Life Pension Plan offers a consistent and guaranteed income for a retiree in the form of a monthly pension to maintain their lifestyle. The key features of this plan include different types of annuity payout plans, including various payout frequencies. You can also protect your spouse’s financial future by purchasing joint-life insurance.
7. ICICI Prudential Immediate Annuity Plan
In return for a one-time lump sum investment, the ICICI Prudential Immediate Annuity Plan guarantees lifetime income, ensuring post-retirement financial stability. To meet specific needs, it offers a variety of annuity options, including single-life, joint-life, and return of purchase price options. Policyholders have the option of deferring income start for higher returns and selecting a payout frequency of monthly, quarterly, half-yearly, or annual.
8. IDBI Federal Guaranteed Lifetime Income Plan
During their retirement years, retirees can maintain their financial independence and peace of mind with the help of IDBI Federal Life Insurance. Key features include a variety of annuity options, including return of purchase price, joint-life, and single-life, which provide flexibility and protection for families; a lifetime income guarantee that is not impacted by market movements; and the option of monthly, quarterly, half-yearly, or annual payout frequencies.
9. PNB Metfile Immediate Annuity Plan
A traditional, non-linked annuity product, the PNB MetLife Immediate Annuity Plan provides to convert your accumulated corpus—such as retirement funds or NPS proceeds—into a consistent lifetime income. A one-time payment (purchase price) followed by guaranteed payouts, a choice of payout frequency (monthly, quarterly, half-yearly, or annual), joint-life options to support your spouse, and choices to transfer the purchase price or remaining amount to your nominee in the event of your death are some of the key features of this annuity plan.
10. Bajaj Allianz Guaranteed Pension Goal
The non-linked, non-participating Bajaj Allianz Guaranteed Pension Goal annuity plan converts a lump sum (or premium payments in deferred modes) into regular payments either immediately or after a deferment period, guaranteeing retirees a lifetime income. The ability to customize the return of purchase price (ROP) upon death or survival, joint life insurance with a 50% or 100% annuity to the spouse, survival benefits, and top-up premiums are additional features.
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Factors to Consider Before Investing in Annuity Plans
The factors to consider before investing in Annuity Plans are as follows:
- Type of Plan: There are two types of annuity plans: immediate or deferred annuity. If you wish to get the regular payouts immediately after your retirement, you can opt for an immediate annuity, whereas if you want it to begin after a few years, you can choose the deferred annuity option.
- Inflation: The annuity plan which you are opting for must have an inflation protection feature. As it can help you maintain the purchasing power against inflation.
- Partial Withdrawal: One should check for a plan which offers partial withdrawals, as it can be required in case of an emergency.
- Duration: Life expectancy helps you in choosing the payout feature of the annuity plan. Whether you want it for a fixed duration or for a lifetime.
- Payout Option: One should evaluate different payout modes, such as joint life, return of purchase premium, etc., before choosing the annuity plan.
- Claim Settlement Ratio: It is advisable to choose a company with a higher claim settlement ratio and a strong financial background.
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Conclusion
On a concluding note, investing in an annuity plan is an important part of your retirement planning. These plans help you to get a steady income even after your retirement to meet your financial needs. Various types of annuity options are available in the market, but you should choose which one is suitable for your goal. However, it is advisable to compare the features of different annuity plans offered by companies before choosing one for your retirement, and consult your investment advisor for the same.
Frequently Asked Questions (FAQs)
What are the two main types of annuity plans?
The two major types of annuity plans are immediate annuity and deferred annuity.
Are payouts from annuity plans taxable in India?
Yes, annuity plans are taxable and are taxed according to your income tax slab.
Can I partially withdraw the corpus accumulated in the annuity plan?
Partial withdrawal is not allowed by almost all annuity plans. Annuity plans that allow for early and partial withdrawal are still very few.
Is there any alternative option available for annuity plans?
Yes, there are various alternative options for annuity plans, such as Mutual Fund SWP, etc.
What is the minimum investment amount for annuity plans?
Different annuity providers have different minimum investment amounts. But generally, it starts at one lakh INR.
