Govt bonds and immediate annuity plans: 2 options for retirement income

The first offers a guaranteed rate of return for long; the other secures income for the rest of your life

If you have retired recently, you are probably on the lookout for low-risk investment options that give a regular income. There is the tried-and-tested bank fixed deposit. Two other low-risk products that come to mind are government bonds and immediate annuity plans by insurance companies.

With interest rates on the upswing, rates of return on government bonds have turned attractive. Retail investors can purchase them either through the RBI Retail Direct platform or through their brokers. Alternatively, they can buy an immediate annuity plan from an insurance company. Here, the buyer invests a lump sum amount after which the insurance