Retirement planning: Keeping future pain away

Comments 0
Company pension plans, even in the public sector,are increasingly shifting to a defined contribution model from one based on defined benefit. Reuters Company pension plans, even in the public sector,are increasingly shifting to a defined contribution model from one based on defined benefit. Reuters
SummaryPension plans from life insurers could be another lucrative option

or payment of regular annual premiums over a period of time. The benefit of income after retirement can be realised immediately upon retirement or deferred wholly or in part; the monthly annuity would be calculated accordingly. Annuity payments could be (chosen) for a lifetime or for a guaranteed period of time and can be extended to cover the life of a nominee.

Today, Dr Nandy would have had the choice of augmenting his government pension with a private pension plan with greater benefit-choices. And, if he could have projected inflation and calculated his dependent’s needs more accurately, he and Mrs Nandy would be going to the Ramkrishna Mission more often.

By V. Viswanand, Director and Head - Products and Persistency Management, Max Life Insurance

NOTE: The views expressed are those of the author.

Single Page Format
Ads by Google

More from Personal Finance

Reader´s Comments
| Post a Comment
Please Wait while comments are loading...