Today sadly, there is no pension plan which meets all your requirements. For example Templeton and UTI (both asset management companies) have a pension plan – and it is a one size fits all type of a plan. Typically a pension plan should have various options at the ACCUMULATION stage – when a person is 23 years of age he/she could be in 100% equity and when he is 55 he may want to be say 70% in debt. So typically it should offer various options at say 100% equity, 80% E, 60% and 30%. Similarly at the time of withdrawal the 65 year old, the 70 year old and the 85 year old may want different options.
Alas such options are not available. In fact not even a SINGLE pension product (disbursal stage) is available from the mutual fund industry, and that is a real big tragedy.
The Chairman of SEBI occasionally makes a noise that Mutual funds should ‘bring pension products’.
To me this is complete humbug. There has to be some clarity among the regulators about who will regulate what! If a mutual fund has a pension plan will PFRDA make norms for it? If a life insurance company has a pension plan without a life cover attached, should they be allowed to launch it at all? What is the role of IRDA if the ‘product’ call is taken wrongly by another regulator…these are all issues which the govt. will have to resolve BEFORE making holistic statements.
By the way I am convinced that there is no pension plan with the life insurance companies which inspires you to lock in the money for 60 years….
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