INCOME TAX11 Sept 2026
Want regular income after retirement? How annuity plans work and what you should know about them | Mint
Planning a regular income after retirement is not just about building a big corpus. Annuity plans can help by turning your lump sum into monthly, quarterly or yearly payouts. But once you buy one, the money becomes less flexible. Your payout depends on the tenure, interest rates, life expectancy and whether you pick a single or joint life option. So compare plans before you commit.
Key Statutory Highlights
- An annuity plan converts a lump sum into regular payments, which can be monthly, quarterly or yearly, for a fixed period or for life.
- The payout you get depends on the annuity tenure, prevailing interest rates, life expectancy, and whether you choose single life, joint life or return of purchase price.
- You can choose a fixed annuity with a guaranteed payout, or a variable annuity where the payout stream follows the performance of the plan's underlying investments.
Actionable Advice for Taxpayers / Founders:Before you buy, check whether the payout option suits your monthly needs and ask the insurer how a joint life or return of purchase price choice would affect your spouse or nominee, since your lump sum becomes locked in once the annuity starts.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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