Annuity As A Retirement Saviour

Given the economically uncertain times that we now live in, most people prefer to embark on a sound investment plan at an early age to be able to generate a fixed income during their years of retirement. An annuity plan is one such option that locks your investment per month to be able to create a corpus which will pay back a regular amount each month on retirement. The article highlights the pros and cons of annuity plans while comparing them with other options

Anil Kapoor is a retired man now. Nonetheless, he had planned for his retirement during his heydays and has invested judiciously in both equity and debt to take care of his second innings. However, the recent heightened volatility in the equity market has made him a worried man. Bellwether equity indices are swinging by a couple of percentage points quite effortlessly. Even the much stable debt market is witnessing a rise in volatility of its benchmark yield. For someone who has invested for the long term, these uncertainties may not impact much but for a retiree like Kapoor, who depends upon his investment in these securities to withdraw his regular income, any such uncertainty can be unsettling.

He would rather have regular and guaranteed income in his golden years and such volatility may push him into sleepless nights. As in the case of Kapoor, if you are one of those looking for regular and guaranteed income in your sunset years, allocating a part of your retirement corpus to a suitable annuity product may be the answer. These products are specifically designed to meet long-term retirement needs. However, before diving deep into the details of annuity, let us first try to understand the product itself.

Annuity Plans