Retirement Income That Lasts: Immediate vs Deferred Annuities
NPS is market-linked and tax-efficient with mandatory annuity purchase at retirement; immediate annuities convert a lump sum into guaranteed lifetime income; deferred pension plans accumulate during working years, then convert at a chosen age.
Guaranteed vs market-linked
NPS and ULIP pensions carry market risk for higher growth; traditional plans offer guaranteed returns with lower upside. A balanced plan covers essentials with guaranteed income and inflation-beating growth on the rest.
Common mistakes
Buying without checking the annuity rate at maturity, ignoring the spouse with a joint-life option, treating EPF as the whole plan, and withdrawing the entire corpus at once.
Pension comparisons need numbers against your actual goals - a free assessment runs them. See the pension plans advisory service for free guidance.