I Already Have A Provident Fund Account. Do I Still Need A Pension Plan?

Yes, you do need a pension plan as PF may not be enough to secure you financially after retirement. The growth of inflation has been at a rapid rate, so your PF account might not be sufficient to cover your complete expenses in the future. Moreover, with old age your body might be subjected to diseases. In such case, your lone PF account may not be able to cover all your health care expenses. On the other hand, the benefits of pension plan prevail over PFs, some of them are listed below


  • Equity exposure in PF is up to 15 percent. However, in pension plans, it can go up to 75 percent
  • PFs do not offer flexibility in choosing funds. However, in pension plans, you can select fund according to your requirements
  • PF account has fixed returns that ensure your capital safety. On the other hand,the pension plans provide both capital safety and appreciation of investments

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