Pension plans from insurance companies are not a great way to save tax because of the high charges. Although Ulip charges have been reduced, pension plans still levy high charges on buyers.

In comparison, the low-cost NPS is a much better alternative. The pension plans from insurance companies are also not as tax friendly. Only 33% of the corpus can be withdrawn at the time of maturity and is tax free.

The balance 66% has to be compulsorily put in an annuity to get a monthly pension that is fully taxable. For the NPS, up to 40% of the corpus is tax free. Of the balance amount, only 40% has to be put in an annuity.

Smart tip : Opt for higher equity exposure in your pension plan when you are young, to gain from stocks.

We have mobilized asset under various mutual funds over six crores+. We are well equipped with internet to address your problems and render investment & income tax related services.

So, join mutual fund investment or tax saving schemes under our guidance at earliest to grow your investment along with peace of mind. The earliest you start investing, more compounding growth you will have in future.