HDFC pension Plan

POSTED BY Giri ON February 6, 2011 11:47 pm ONE COMMENT

Hi everybody,

I have HDFC  Unit linked pension plan started in 2008 with a annual premium of Rs 99900. I have committed due to  some obligation, even now i dont know much about this scheme. i have paid for   3 premiums sofar and the present fund value is Rs 330000.Policy term is 20 years, maturity date 27-02-2028 and there is no sum assured in this policy. I dont have any other pension plans shall i continue with this or switch to any other plan? I am Gulf based NRI aged 36 years.also can any one plese simplify this policy, i tried but could not  understand much  as i am not familiar with this terms . I am confused with the term buying annuity . What i  thought is after the maturity date i will be getting monthly pension based on the final maturity amount.my goal is  to get a monthly pension of Rs 40000 per month, when i retire probably at the age of 55.I is it possible to achieve this if i continue with this policy till the policy term of 20 years with growth fund option? Plese suggest me if any better alternative availble to me?

One reply on this article “HDFC pension Plan”

  1. I am unable to find the exact plan but if your investment has grown to 330,000 in 3 years = 9% CAGR [after all the mammoth ULIP charges] I think the fund is doing fine.

    In the next 17 years if we assume your corpus grows at 12% CAGR (and you contribute 99900 each year] the corpus at the end of policy [2028] must be ~ 77.4 lacs. 1/3 of this amount is tax free – you get 25.8 lacs in hand. You need to buy an annuity from HDFC or other firm. Assuming the left over corpus itself grows by 8% and you withdraw 40,000 every month the corpus will last for ~ 20 years.[You have the 25.8 lacs intact already].

    BUT BUT BUT-Rs. 40,000 per month pension may not be sufficient 17 to 20 years from now. That is a separate financial planning need in itself. Try this website for several of your answers. Feel free to visit my page as well.

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