Amit Sethi
It is a pension scheme where you invest money in a lump sum or periodically until the policy's maturity.
Regular investments in an annuity plan will help you build a decent corpus fund and ensure steady income after retirement.
You can select an annuity plan and other schemes in your portfolio based on your income, life goals and age in alignment with your retirement.
Select the schemes carefully post-retirement, as you will have little room for error in case of any significant losses.
Ensure your high-return and high-risk assets are a manageable part of your portfolio to avoid financial losses.
Annuities offer low returns with minimal risk; hence, they can stabilise the portfolio and ensure guaranteed returns.
Ensure you select instruments that offer guaranteed regular income, as you may have limited income sources in old age.
Compiled By Himani Verma