A Retirement Income Plan is a saving plan by which you can receive a lump sum amount on your retirement. Generally, a retiree may need about 60% of his/her last drawn salary to maintain his/her existing standard of living during retirement.
The Employee Provident Fund (EPF) contribution can be an important source of retirement income, but a study by EPF also showed that majority of contributors spent all their savings within three years of withdrawal upon retirement. Retirement annuities ensure that you are taken care of for the rest of your life.
WHY DO I NEED IT ?
It is advisable to start saving as early as possible during your working years to build enough funds to provide you with a worthwhile income when you retire.
To ensure lifetime income, removing uncertainty and problems should you outlive your financial resources.
To guarantee income payment for your loved ones after your demise.