Pension Products Why pension? Maintain the standard of leaving. Reduce the burden at the time of r e t i r e m e n t. Financial provision in retired life. Retirement income may be last year income.

Pension Schemes: Funded pension schemes :- Sometime contribution employ, individual or employer. Occupational & private pension scheme are funded scheme. Unfunded Scheme :- Mostly pension provided by government to it’s citizen.

Pension Schemes conti.: State Pension :- Provide the basic old age pension only or may supplement the basic pension with an additional scheme for higher paid employ. Occupational pension scheme :- Generally setup for selected group of employ by the employer.

Pension needs & their evaluation 1.To make the financial provision. 2.To reduce the financial burden while retiring. 3.Provide the fund for medical benefits of self and spouse. 4.To make our self financially independent. 5.While deciding the pension at the time of retirement, the inflation & rate of interest should be considered.

Factors affecting the pension. Age; Dependants; Income; Other assets & liabilities; Previous and current pension arrangements; State pension provision;

Suitability factor for pension products. Eligibility; Contribution level and any limits; Benefits; Charging & commission structure (if applicable); Withdrawal arrangements & transfer value; Flexibility; Guarantees; Investment option;

Influence of tax consideration on pension provision. 1.Employer contribution treated as business expenses. 2.Employee contribution enjoy tax rebate. 3.No tax on investment income & capital gain of the pension fund. 4.Pension income taxed as earning rather than as investment income.

Types of personal pension plans. 1.With profit pension plan :- Provide more guarantee return. Safe investment with low to medium risk. 2.Unit link pension plan :- Offer a choice of investment fund. Medium to high risk investment. Switching among funds possible.

Pension products may offer some of the following facilities: Increase or decrease of contributions. Contribution holiday without penalty. Variable retirement date between 50 & 75. Death before retirement benefit. A sickness or disability waiver of contribution potion for an additional cost. Segmentation for phased retirement. Pension fund withdrawal scheme.

Thank you… Sangharakshit. M. Shende Devlopment Officer,LIC of India,Mumbai