Outlook Money
A pension plan is an investment plan that offers fixed returns as monthly pensions post-retirement.
Any individual aged 18 and older can invest in a pension plan.
Pension plans like NPS offer 9-12 per cent annual returns.
Pension plans can help you secure your financial future in old age.
An annuity plan allows you to pay the premium in a lump sum or in instalments—quarterly, half-yearly, or yearly.
Annuity plans can give you 5-12 per cent annual returns.
Pension plans offer better returns than annuities and are more secure.
Compiled By Himani Verma