Why and how to choose a retirement plan? why choose best pension plan ? | Page 3

Different Pension Plans
1. Traditional Plans- In which the plans benefit on retirement is
determined by a set use of formula, it does not depend on investment
returns. The amount of payout is almost guaranteed, It also called defined
benefits (DB). If you are completely risk averse, it maybe better go with
traditional based pension plans.

2. ULIP Pension Plan- In which the some part of amount paid as premium
every year and known as long term retirement or investment plans. These
are market-linked pension products which are offered by life insurance
companies. The purpose of these plans is provide to health and life cover
and a minimum guarantee of 4.5 percent. If your investment horizon is for
long years like 10 or more, it may suggested to go with the ULIP based
pension products.