Buy annuities at a later age and avoid return of purchase price option

Make the right trade-offs when buying an immediate annuity

Falling interest rates on fixed-income products have left senior citizens anxious about their finances. The fear of rates tumbling even further is nudging many aged between 50 and 70 years to buy large annuity plans.

Once the salary stops, investors need to invest their corpus in instruments that help generate a regular income. Says Naval Goel, chief executive officer and founder, PolicyX.com: “The purpose of an annuity is to give you a steady income stream throughout your retirement or once your income stops. It’s like a reverse equated monthly instalment.”

Adds Melvin Joseph, a Securities and Exchange Board of India-registered