Pension plans for NRIs in India

 A lot of Indians go to foreign lands in search of better career and lifestyle opportunities. However, many of them return after retirement because no matter where you go, India will always be home. There are multiple reasons why NRIs return to India after retirement. Some prefer to return due to purchasing power parity arbitrage, which allows them to have a better lifestyle in India as compared to their host country. Another reason could be that NRIs cannot sustain their desired lifestyle after retirement in their host country, and hence want to return. Either way, it is essential for NRIs planning to come back home to know what their options for pension plans in India are to live a dignified and comfortable life post-retirement.

Having a retirement corpus is great, but that won’t necessarily be enough. Since NRIs are used to a decent lifestyle, matching it after retirement would be challenging. There are many factors to consider after retirement, which could include medical expenses, housing expenses if you’re planning to buy a new property in India to settle in, and a lot more.


Why one should invest in NRI pension plans in India

Pension schemes offer regular income flow that can help you with your daily expenses. A pension that suits your needs can offer you tremendous peace of mind out of your life savings and it is always recommended you start early. Your small contributions over the years can help you build a sizable corpus for a comfortable retirement.

If you have a good corpus in the currency of your host country, you can simply convert it into INR. No matter how extensive your corpus is, it is best to opt for a pension plan due to the following benefits.

●  Lifelong life insurance cover

●  Assured returns

●  Tax benefits

●  Deferred payments to make large annuities for later years

●  Return of principle corpus to the nominees/survivors

Annuity options available

●  Immediate annuity

Under this plan, you get an immediate pension from the nearest date, from the date on which you buy the annuity.

●  Deferred annuity

In this case, the annuity starts after a few years so that you can get a chance to grow your corpus a little bigger.

●  Annuity certain

The annuity is paid over a specified period as regular payouts.

●  Life annuity

In this case, the pension is released to your spouse for life in the event of you passing away.

●  With Cover Pension

With this plan, you get an insurance cover where your dependents get pay-outs or a lump sum amount after your death.

●  National Pension Scheme

NRIs can use the National Pension Scheme to build a retirement corpus for 60 years, which can also further be extended to ten more years. NRIs can withdraw up to 60% after maturity and use the remaining 40% amount to buy annuities.

Many life insurance companies and banks offer pension calculators to help you get started on your retirement goal. These calculators also help you fix the pension for the premiums.

Details to consider

There are many players out there offering pension plans to NRIs, however, just like everyone is different their needs are different too. Hence, you must check all your options and choose a plan to suit your needs and help you meet your retirement goals. It is important to consider these three factors before choosing a pension plan in India.

Eligibility

Most pension plans for NRIs in India have an entry age of 30 years and a maximum age of 75 years.

Duration

The minimum duration offered by insurance companies for NRI pension plans is ten years, and the maximum duration can be 30-35 years.

Premiums

There are usually no limits to maximum premiums paid, however, the minimum premium you can pay in a year is close to Rs. 50,000. If you decide to opt for NPS, the minimum first month and a subsequent monthly contribution of Rs. 500 is compulsory.

As you can see, there are many factors to consider for retirement and picking the right pension plan. As a senior citizen, everyone wants to live a dignified and comfortable life. After all, you want to make the most of all those years toil. It’s essential to put your hard-earned money in the right hands, that’s where SBM Bank India comes into the picture. From offering best-in-class interest rates on NRE Savings Accounts, NRO Savings Accounts, and even FCNR Deposits, to providing expert assistance in case of investments, retirement plans, and a lot more, SBM Bank India has got you covered.

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