How To Avoid Mis-Selling In Annuity Plans: 5 Things To Keep In Mind
Those looking to buy an annuity plan should be aware of the traps or enticements and understand the policy document well before making a purchasing decision to avoid troubles later.
Those looking to buy an annuity plan should be aware of the traps or enticements and understand the policy document well before making a purchasing decision to avoid troubles later.
Returns offered on these policies are low because the mandate is to invest only in fixed-income securities
Senior citizens will comprise 20 per cent of India’s population by 2050, so ensuring adequate pensions for them is crucial for their financial securityand the country’s economic stability.
The National Pension System (NPS) is a retirement savings tool offering exposure to both equity and debt instruments.
Using the entire NPS proceed towards buying an annuity plan is not recommended as annuities are fully taxable, the rates are low, and payments are fixed. Instead, divide it suitably into annuity, debt, and equity.
Each pension scheme produces different results, and investors can choose them based on their financial requirements after retirement.
From Systematic withdrawals to lump sum withdrawals or providing pension to the nominee in case of death NPS offers various benefits on exit or premature closure.
Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a pension scheme providing senior citizens with monthly pensions for up to 10 years. Learn more about its features and benefits.
The National Pension System (NPS) is a government-backed small savings scheme for retirement. It allows a lumpsum withdrawal of up to 60 per cent at age 60.
Annuity Service Providers offer different annuity plans to suit individual needs, but subscribers must first understand their functions and identify their requirements.
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