I am 25 and a broking firm employee with a salary package of Rs 2.4 lakh plus per annum. I want to invest in monthly or quarterly plans for my retirement. Which ones would be best for me? How good would be unit-linked plans from Bajaj Allianz?You may opt for a pure pension plan with an insurance cover. A pension plan has typically two components, that is, the insurance and the annuity, which is paid in the form of pension. On the investment front, when you buy a pension plan, it works like a deferred annuity, which would start after the lapse of certain period of time. Till that time period, the insurance cover is prevalent. At the time annuity is about to start, the insurer enters into another contract with the insured with respect to the payment of pension/annuity. The difference between a guaranteed (pure) pension plan and a unit-linked plan is the amount of return, that is, pension assured by the insurer at the time of vesting. In unit-linked pension plans, there are no assured returns and your money is invested in equity and other funds as chosen by you and its return shall depend on the future performance of the fund.
