Midlife financial planning: Buy deferred annuity plan for assured income

Some portion of retirement savings must also be invested in growth assets and some in liquid ones to meet emergencies

In a recent master circular on life insurance, the Insurance Regulatory and Development Authority of India (Irdai) allowed partial withdrawals from deferred pension plans for specific reasons, such as higher education or marriage of a child, purchase or construction of a house, and treatment of major illnesses, etc. These withdrawals, permitted only three times during a plan’s tenure, cannot exceed 25 per cent of the total premiums paid till the withdrawal date.

Experts say the flexibility to access accumulated savings will make it easier for customers to buy a deferred annuity plan. 

“Allowing customers to dip into their accumulated