Comparision Of Different Pension Plans

Here, I am comparing 3 Pension Plans of 3 different companies.
1) HDFC Standard life Insurance Co – Unit Linked Pension Plus
2) ICICI Prudential-Life Time Super Pension
3) Bajaj Allianz- UG Easy Pension Plus

Let’s take an example of a person of 40 years of Age, who is interested to invest Rs. 50,000 annually as premium.
As per IRDA’s guidelines an Agent or a company can show the return of 10%( Higher) & 6%(Lower).
So, Following are the returns that the person will get if the market gives a return of 10%.

· HDFC Standard life Insurance - Unit Linked Pension Plus for Growth Fund
After 10 years-Rs. 7,66,606
After 15 years –Rs. 15,14,492,
After 20 years- Rs. 26,76,775

· ICICI Prudential-Life Time Super Pension for Maximiser II fund.
After 10 years-Rs. 7,59,608
After 15 years –Rs. 14,51,292
After 20 years- Rs. 24,84,178

· Bajaj Allianz- UG Easy Pension Plus for Equity Index Pension Fund II
After 10 years-Rs. 7.71,869
After 15 years –Rs. 14,77,377
After 20 years- Rs. 25,42,923

So, we can see clearly that the best plan for those people who are interested to take a pension plan is of HDFC Standard life Insurance - Unit Linked Pension Plus.

The reason why HDFC’s Unit Linked Pension Plan is able of give more returns that other companies are because of the Lower Fund Management Charges (FMC).
· In Case of HDFC the FMC charge is just 0.08 % of your fund value, which is minimum in the industry.
· FMC is the charge, which play a major role in the long term.
· Beside this HDFC is also giving addition units of 0.10%, which is called Loyalty Benefit. This additional benefit of Loyalty Units, which is being given, increases the total Fund Value.

So, my suggestion to all those people who want to take a pension plan is see the FMC charges of the plan before investing.