Retirement Income That Lasts: Immediate vs Deferred Annuities
Buying without checking the annuity rate at maturity, ignoring the spouse with a joint-life option, treating EPF as the whole plan, and withdrawing the entire corpus at once.
The three main vehicles
NPS is market-linked and tax-efficient with mandatory annuity purchase at retirement; immediate annuities convert a lump sum into guaranteed lifetime income; deferred pension plans accumulate during working years, then convert at a chosen age.
Tax angles that matter
Section 80CCD(1B) adds a Rs 50,000 NPS deduction beyond the Rs 1.5 lakh 80C cap; Section 80CCC covers pension plan premiums; annuity income is taxable at slab - time withdrawals accordingly.
Pension comparisons need numbers against your actual goals - a free assessment runs them. See the pension plans advisory service for free guidance.