Generally, Indians go abroad for education and employment but ultimately settle in India. NRIs who wish to return to India in the later stage of their lives should build a corpus of funds for their retirement. To enjoy a healthy and prosperous life after retirement, they must invest in one of the best retirement plans for NRIs in India.
There are several retirement plans for NRIs, such as SBI pension plan for NRI, LIC Jeevan Nidhi Plan, Bajaj Allianz Life Pension Guarantee Plan, etc. Most of the insurers offer inclusive pension plans exclusively designed to solve the purpose of retirement needs. Based on your goals, age and financial status, you can choose a plan that suits you the best.
Best retirement plans for NRIs
Here are some of the best retirement/ pension plans for NRIs in India. These plans not only offer good returns but also tax benefits for NRIs.
|Retirement plan||Age||Policy term/ annuity options||Tax benefits|
|SBI Life – Retire Smart||30 – 70 years||10, 15 – 35 years||U/S 80C & 10(10D)|
|LIC Jeevan Akshay||30 – 65 years||Life annuity & 5, 10, 15, 20 years and thereafter||N/A|
|Aviva Wealth Builder Plan||5 – 50 years||13, 15 & 17 years||Available|
|Bajaj Allianz Life Pension Guarantee Plan||37 – 80 years||Life annuity & 5, 10, 15, 20 years||Available|
|LIC Jeevan Nidhi Plan||20 – 60 years||Life annuity & 5, 10, 15, 20 years and thereafter||U/S 80CCC|
|National Pension Scheme for NRIs||18 – 60 years||–||Up to 1.5 lakh|
Note: Rates, plans and terms & conditions of any particular company are not endorsed by SBNRI. Tax benefits are subject to changes in tax laws.
Key features of NRI retirement plans
SBI Life Retire Smart Plan
- SBI pension plan offers guaranteed additional increases to the corpus.
- Guaranteed additions accrue at 10% of the annual premium from the 15 years till the end of the term.
- Besides, a terminal addition at 1.5% of the fund value is paid on the vesting date.
- On the death of the policyholder during the tenure of the SBI Life Retire Smart Plan, the nominee will get higher fund value including terminal additions or 105% of the premium to be paid until death.
LIC Jeevan Akshay
- LIC Jeevan Akshay plan offers annuity payments of a specific amount throughout the lifetime.
- The minimum purchase price is Rs. 1 lakh and Rs. 1.5 lakh for online sale.
- Also offers an increment in the annuity at the rate of 3% per annum.
- Payment of 50% and 100% of annuity to the spouse and return of purchase in case of unfortunate demise of the policyholder.
Aviva wealth builder plan
- Best suited for policyholders to achieve their financial goals like a dream house, child’s education and wedding, etc.
- Offers protection to your family when you are not around.
- Your premium amount gets doubled at maturity.
Bajaj Allianz Life Pension Guarantee Plan
- The first annuity is paid in the 1st, 3rd, 6th months, or 1 year after policy inception based on the payment method you choose.
- It has annuity options like an annuity for the lifetime of the purchase price in case of death of the policyholder and an annuity for a specific period of 5, 10, 15, and 20 years till lifetime.
- Alternatively, the spouse will get coverage along with 50% of annuity in case of death of the annuitant.
LIC Jeevan Nidhi Plan
- One of the most popular pension plans for NRIs, LIC Jeevan Nidhi comes with five different types of plans to choose from.
- In the first 5 years of the policy, guaranteed additions at 5% of the sum assured for each completed policy year is added to the corpus.
- In case of death of the policyholder during the first 5 years of the term, the basic sum assured + Guaranteed Additions is released in a lump sum or annuity. You can also get it partly in lump sum and partly in the annuity.
- In case of death after 5 years, basic sum assured + accrued Guaranteed additions + vested reversionary and final additional bonus is paid either in lump sum or annuity, or partly in a lump sum and partly in the annuity.
National Pension Scheme for NRIs
- NPS allows NRIs to put their money in the Government initiated New Pension Scheme.
- The minimum subscription under the NPS is Rs. 6,000 on yearly basis.
- 50% of the investment money is allocated to equities.
- The National Pension Scheme matures when you turn 60 years.
Import points to consider when buying a plan
- You must consider the usual returns offered by a retirement plan.
- Look into the returns that a retirement plan offers after 5 to 10 years.
- Compare various plans to select the one that suits you the most.
- Remember to check the repatriation clause in a pension plan.
Also Read: NRI Life Insurance Policy: Which one to opt?
NRIs and Indian residents who are going to move abroad may have several questions regarding retirement plans. At SBNRI, we understand the challenges faced by NRIs. You can download SBNRI App to connect with our experts and get end-to-end assistance related to retirement plans that suit your needs.