Registered Personal Pension
A registered personal pension scheme is a pension that allows employers a tax deduction for the contributions they make to it for their employees. Such plans enable employees to defer a percentage of their compensation so that it is invested into the plan in funds of their choice and will not be taxed until they withdraw it during retirement. Often, the employer will match a percentage of employees' contributions.
Pension reform has been on the agenda for a while in India, but a great deal remains to be done. Many individuals are opting to go their own way. A number of private and public-sector institutions offer personal pension schemes; usually, premiums paid are eligible for tax deductions, and withdrawals up to a certain amount are tax-free.
