Give retirees choice of variable annuities
🔍 Give retirees a choice?
Prakash, a retiree is being forced into a “guaranteed” but low return annuity plan. After taking calculated risks by partly investing in equity and building a Rs. 1 crore retirement corpus in NPS, he is forced into a low-return “guaranteed” pension that cant beat inflation. What if he had a choice? Globally, retirees can pick variable pension payout products (PPPs). In India? No choice.
Why are we treating retirees like children who need financial babysitting? Mutual Fund investors have already understood that “Guaranteed” equals “Low returns” and have reaped the benefits from taking calculated risks through equity. It’s time retirees got the same choice.
📖 Harsh’s “Truth be told” column in Business Standard.