Top Retirement Plans for Salaried and Self-Employed Professionals in 2025

Retirement planning supports a structured financial approach for salaried and self-employed individuals. It allows individuals to prepare for future income needs after their active working years end. Planning early may help individuals set up regular income options. Various pension and annuity plans are available in 2025 for individuals with different financial goals. Also, many plans offer options such as immediate payouts or deferred income structures. This article explains the top retirement plans for salaried and self-employed professionals in 2025. 

Retirement Plans for Salaried and Self-Employed Professionals 

The retirement plan for salaried and self-employed professionals in 2025 is as follows: 

National Pension System (NPS)  

The National Pension System is a voluntary scheme managed by the Pension Fund Regulatory and Development Authority (PFRDA). It is available to salaried employees, government staff, and self-employed persons. Individuals contribute to their pension account regularly during their working years. At retirement, some part of the accumulated fund can be withdrawn as a lump sum, and the remaining portion may be used to buy an annuity plan. Contributions made under NPS are eligible for tax deductions under Section 80CCD. 

Public Provident Fund (PPF)  

The Public Provident Fund is a long-term savings scheme supported by the Government of India. It is available to both salaried and self-employed individuals. The scheme has a 15-year lock-in period, and contributions earn interest at a rate decided by the Ministry of Finance every quarter. The interest earned and the maturity amount are exempt from income tax. Individuals can contribute a fixed amount every year, and partial withdrawals are allowed after 6 years of opening the PPF account. 

Annuity Plans  

Annuity plans are available through life insurance companies and can be suitable for those nearing retirement. Individuals invest a lump sum amount, and the insurer provides regular payouts for life or a fixed duration. Annuity options include immediate annuity, deferred annuity, and joint life annuity. These plans do not allow the withdrawal of the principal amount but offer fixed income during the post-retirement period. An annuity plan can be helpful for self-employed individuals who want a predictable payout pattern. 

Senior Citizens’ Savings Scheme (SCSS)  

The Senior Citizens’ Savings Scheme is designed for individuals aged 60 years and above. It is available through banks and post offices. The scheme allows a one-time investment, and interest is paid quarterly. The interest rate is reviewed every quarter by the Ministry of Finance. SCSS has a tenure of five years and may be extended by three more years. The SCSS can be suitable for retirees who seek regular interest income in their retirement years. 

Life Insurance Retirement Plans  

Many life insurance providers offer pension or retirement-focused insurance policies. This plan combines savings with life coverage, and both salaried and self-employed individuals can buy life insurance retirement plans. This plan usually involves regular premiums or a one-time payment. On maturity, a part of the amount can be paid to the policyholder as a lump sum, while the rest is used to offer periodic income. Many life insurance retirement plans offer deferred annuity or immediate annuity options, based on the policyholder’s age and preference. 

Atal Pension Yojana (APY)  

Atal Pension Yojana is a government-backed pension scheme mainly aimed at unorganised sector workers. However, any Indian citizen between 18 and 40 years of age may join. People who enrol for this yojana can receive monthly pension benefits after reaching the age of 60. The contribution amount depends on the chosen monthly pension and the age of entry. 

Voluntary Provident Fund (VPF)  

The Voluntary Provident Fund is an extension of the Employees’ Provident Fund. It allows salaried employees to contribute a higher percentage of their salary beyond the mandatory EPF amount. The interest rate is usually similar to EPF. Additionally, it offers tax benefits under Section 80C, and the maturity amount is tax-exempt if certain conditions are met. VPF may suit those who want to increase long-term savings through payroll deductions. 

Retirement-Linked Mutual Funds 

Retirement-linked mutual funds are designed to support long-term retirement planning objectives. These funds typically follow equity or hybrid investment strategies and are suited for long-term goals. They may include lock-in periods and step-down strategies that gradually reduce equity exposure as the investor nears retirement. These funds are available to both salaried and self-employed individuals. Retirement-linked mutual funds provide flexibility in contribution amounts and allow investment through systematic investment plans (SIPs). 

Conclusion 

Retirement planning is an important part of long-term financial preparation. Choosing a plan with suitable annuity features may support future income after regular employment ends. Retirement products vary in structure and may include options for single life or joint life annuity, immediate or deferred income. Understanding how these options work helps individuals select plans that match their financial goals. It is important to review the terms of each policy carefully before making a decision. All information should be read directly from the official website of the provider for an accurate understanding. 

Disclaimer: The information provided above is for informational purposes only and is not intended as professional or legal advice. The Insurance Regulatory and Development Authority of India (IRDAI) is not responsible for any decisions made based on the information.