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Types of Annuity Plans
Immediate Annuity Pension: An immediate annuity plan offers pension payments right after you invest a lump sum. It works well for individuals who are retiring soon and need instant income support. The payouts begin without delay, ensuring steady cash flow from day one.
Types of Pension Plans in India
Immediate Annuity - Under this plan, you start receiving a pension immediately. You pay a lump-sum amount, and you start getting the annuity based on the amount you have invested. You can choose from the range of annuity options under this plan.
Understanding Retirement Annuity Plans
Vesting Phase: Once the accumulation phase ends, you can withdraw a part of your corpus while the balance is used to buy an annuity plan. This annuity then provides you with a steady pension for life, ensuring income security during retirement. You can also bypass the accumulation phase entirely by buying an annuity directly using your existing retirement corpus received from your employer. When choosing an annuity, you generally have two options: an immediate annuity or a deferred annuity. The right choice depends on your financial requirements, future goals, and the level of income flexibility you need during retirement.
Annuity Period and Conditions
An annuity is the most distinctive feature of a pension plan in India. You can choose between an immediate or Deferred Annuity . You may need an immediate annuity if you have just retired and need to invest a lump sum amount to start your pension income.