Is a market-linked pension plan right for you? Vivek Jain explains

economictimes.indiatimes.com:

Vivek Jain, Head of Investments, Policybazaar.com, says if you are still below 40, you can go for a market-linked retirement plan because your risk appetite is higher and you have a longer horizon. Hopefully, you will get good returns if you stay in the stock market you have for 20-odd years. But if you are closer to retirement, 50-55 years old, then you should put in most of your savings in a guaranteed kind of pension plan.
Retirement is a very crucial goal for a lot of us, we have seen that more than planning it in an investment-based way, a lot of people prefer buying retirement products from life insurance. Typically what are those products that we are talking about? We will get into the aspect where we can discuss if it is better than any other investment avenue.

Vivek Jain: Broadly the retirement products from the insurance companies are two types. One for a younger audience, people below 40 and still ready to take some market-linked risk. For them, we have market-linked plans wherein the policy term is a whole life or whole of life and you get market-linked returns typically. Given how the Indian stock market has performed in the last 10 odd years, you can expect 12-15% returns in those kind of plans. But these obviously are market-linked and so this is not something that is guaranteed.

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