Top 5 Reasons Why You Need a Pension Plan - Even If You’re Already Saving

As a young corporate professional, your first instinct is often to invest in market-linked options. At this stage, the ups and downs of the market don’t feel too risky—after all, you have a steady monthly salary and relatively fewer financial responsibilities. Even if the markets dip, you’re confident time is on your side to recover. That’s the privilege of youth: you can take risks, make mistakes, and still bounce back stronger.

However, retirement is a completely different ball game. Age is not by your side, and you don’t really have decades to wait for a market rebound. When you need a regular monthly income, relying completely on risky investment tools can be a bit tricky.

The Hidden Risk: Sequence of Returns

Here’s a concept not everyone knows about: sequence of returns risk.

Imagine two retirees, each with ₹50 lakhs. One retires when markets are rising, the other right before a crash. Even if both earn the same average returns over 20 years, the second retiree’s money may finish sooner—because they had to withdraw when the market was falling.

This shows that retirement isn’t just about average returns. The timing of returns matters more than we realize. And unfortunately, no one can predict the market cycle when they retire.

Markets can’t guarantee, but annuities can

Mutual funds and equities are great for growth, but they come with one big disclaimer: returns are not guaranteed - that’s the catch. Market fluctuations cannot be predicted, and while saving and investing, the order of returns matters much more than the overall average.

Annuities, on the other hand, are a complete opposite. They are designed to give you guaranteed, lifelong income, regardless of market crashes, interest rate cycles, or global uncertainty. Once you have locked it in, your payout is assured.

The value of predictability

Retirement isn’t just about money, it’s about peace of mind. Knowing exactly how much you will receive every month allows you to:

• Make a proper budget for daily expenses.
• Plan for travel, medical costs, or supporting your children.
• Relax without needing to check market indices.

This predictability is priceless. What’s the point of saving for decades if your retirement years are filled with anxiety?

Non-linked, non-participating plans – Why they matter

Many people get confused by the jargon, but let’s simplify for you.

• Non-linked plans: Your income is not tied to the stock market.
• Non-participating: Your payouts are not dependent on your insurer’s bonuses or profits.

In short, it means your income is fixed, guaranteed, and not subject to surprises, and that’s exactly what retirees need – certainty.

Grow your wealth without fear

Investments help you grow wealth, but guaranteed income ensures you can live off that wealth without fear of running out. Both have their highlights, but when it comes to retirement, safety and stability weigh more than chasing higher returns.

 IndusInd Nippon Life Nishchit Pension Plan – Your Safety Net for Life

We all think the same way, but the more we look into it, the clearer it becomes that investments and a pension plan are two separate things. One helps you build wealth, while the other guarantees that you don’t run out of money when you are no longer working or earning.

How can a pension plan be beneficial in addition to your investments?

When inflation rises, it quietly eats into your savings

As a legacy, we have seen our parents securing their money through bank deposits, but in those days which was probably 20 years ago, the interest was more than enough to cover their monthly expenses. When we evaluate the current situation, medical bills, grocery prices, even electricity - everything has multiplied. Suddenly, what felt like a big sum wasn’t so big anymore.

That’s what happens when inflation hits. A pension, with its regular payouts and fixed annuity rates, helps keep pace and makes sure your lifestyle doesn’t take a hit.

Life span of an individual has increased

These days, it's increasingly common to see people celebrating their 85th or even 90th birthdays — a wonderful milestone emotionally, but what about financially? If we retire at 60, or even at 65, that could mean living more than 25 years without a steady pay check, all while expenses continue to rise. The question is: are we financially prepared for this extended chapter of life?

Most of us plan for a retirement lasting 10 to 15 years — not nearly three decades. A pension plan ensures your income keeps flowing for as long as you live, so you don’t outlive your money.

Markets crash but retirement can be protected

Just when COVID hit India, markets crashed overnight. Imagine if you had retired that year and were depending on your stock portfolio for income. One bad year can throw your entire retirement planning off track. That’s where a pension plan comes in. It may be routine, but it’s steady and predictable, which is exactly what you want when you are retired. When you other investments become adventurous; your pension becomes your calm in the storm.

Family dependency continues

Retirement does not mean a responsibility-free life. Some people still support adult children, others have dependent spouses, or dependents with health issues.

A joint-life pension option ensures that if something happens to you, your spouse continues to receive the income. It’s not just about your peace of mind but your loved ones too.

The most common hesitation - What if I don’t live to use it – well, we have a solution.

The thought of paying premiums and then not being around to enjoy the benefits feels unfair, right? That’s why many plans come with a Return of Premium feature. If you are not there, the money you put in goes back to your family, so nothing is lost.

Balance your investments for financial freedom

Consider your investments to be similar to the construction of a home. Without a pension, you're leaving yourself vulnerable to risks you never anticipated. It's like the lock on the front door. Securing your wealth is just as important as increasing it, particularly when your future independence and comfort are at stake.

This is where a well-crafted pension plan comes in, not to take the place of your investments but as a potent supplement to round out the picture of financial independence.

 Explore INL Nishchit Pension

INL Nishchit Pension is built to give you exactly that — certainty. Whether you're looking for lifelong income, joint cover for your spouse, or the peace of mind of a return of premium option, it offers flexibility to match your retirement goals.

Your retirement shouldn't be a question mark. With the right plan, it can be a confident full stop.

INL Nishchit Pension, a non-linked, non-participating, individual, deferred annuity plan. UN: 121N158V02

In case of Joint life annuities, the payout continues till either of the lives chosen in the policy is alive. ^The word Guaranteed means that annuity payout is fixed at the inception of the policy. The Total Premiums Paid is equal to annualized premium multiplied by premium payment term and is exclusive of GST & other statutory levies. Monthly Income is 8.07% of Yearly Annuity. Please check the prevailing annuity rate at the time of purchasing policy. IndusInd Nippon Life Nishchit Pension (UIN: 121N158V02) is A Non-Linked, Non-Participating, Individual, Deferred Annuity Plan. For more details on risk factors, terms and conditions please read Sales Brochure carefully before concluding a sale.

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