A simple plan for a post-retirement income

Up till a certain time a few years ago, hardly anyone was interested in an annuity as a mode of generating post-retirement income. In the last three or four years, NPS members have started looking at the idea of annuity and how it can be used to generate income. Unfortunately, annuities, at least the ones that are available in India, are not great products. They are expensive, inefficient and not designed to take care of inflation, which, after all, is the greatest long-term threat to anyone's old age prosperity. . Therefore, it's a good idea for retirees to think of other income alternatives (whether fixed income or equity-based). In fact, even the Pension Fund Regulatory and Development Authority (PFRDA) which mandates that 40 percent of a retiree's money accumulated in the National Pension System (NPS) must be used for buying an annuity, is leaning towards adding a non-annuity withdrawal plan instead.