Purchase an annuity, but go for the right variant at the right age: Expert

Retirees may consider a few other products as well to generate a regular income after retirement

At present, 40 per cent of the National Pension System (NPS) corpus has to be compulsorily invested in annuities at maturity. According to media reports, the Pension Fund Regulatory and Development Authority (PFRDA) has requested the government to make legislative changes, so that investors may park their money in alternative systematic withdrawal plans (SWPs). Against this backdrop, let us examine the pros and cons of annuities and various other products retirees can use to generate a regular income.  

Annuities help tackle longevity risk. Many people, who have not built an adequate corpus, run the risk of outliving their savings. With