Annuity Plans: The Safest Bet For Your Retirement
The pandemic has come as a wake-up call for many of us. People are now giving a lot more priority to the quality of life, living and not just working their entire life. Early retirement may be a recent phenomenon, but it would have crossed the minds of almost everyone today. However, retirement in India is not as easy as it looks. In absence of social security, lack of adequate savings towards retirement and the uncertainty of the finances makes retirement planning very challenging.
What are the retirement solutions available?
The most popular solutions for retirement solutions today are the schemes offered by government namely the NPS, the PPF, the Employees Provident Fund (EPF) and the Atal Pension Yojana (APY). However, being government schemes, they have their own set of advantages and disadvantages. A lot of investors do find they helpful but many also find them inflexible and constrained with limits on the maximum amount. Apart from this, many investors also invest in mutual fund schemes – both as a tool to create wealth and to manage retirement kitty. People are now also increasingly attracted to lifetime income products which are less volatile and are not market-linked. Such products are offered by life insurers and are popularly known as Annuity or Pension Plans. Let us explore them.