Answer Book question

Should I buy an annuity?

Consider annuitising enough to cover your non-negotiable monthly expenses. food, medicines, utilities. so that whatever happens you never go below that floor. Keep the rest liquid. Buying an annuity with your entire corpus is usually a mistake; buying none when you have no pension and fear outliving your money is also one.

By Kerala Rising · ·

Short answer

Consider annuitising enough to cover your non-negotiable monthly expenses. food, medicines, utilities. so that whatever happens you never go below that floor. Keep the rest liquid. Buying an annuity with your entire corpus is usually a mistake; buying none when you have no pension and fear outliving your money is also one.

Real life

A retired shopkeeper with ₹40 lakh and no pension annuitises ₹15 lakh for a ₹8,500/month floor and keeps ₹25 lakh in FDs and a conservative fund. The floor removes his fear; the rest handles emergencies and inflation.

What this means

Annuity is insurance against living too long. Like any insurance, buy what you need, not the maximum.

What to check

Essential monthly expenses Existing pension Health cover Remaining corpus liquidity Spouse's income after your death. joint life matters

What people often miss

Comparing annuity rate to FD rate and rejecting it. They do different jobs; FD does not guarantee income at 92.

The Kerala / NRI angle

For elderly parents with no pension and children abroad, a modest annuity floor gives everyone peace. the parents cannot be talked out of it by a "scheme."

An example

Essential expenses ₹12,000. Pension ₹4,000. Annuitise enough to produce ₹8,000: about ₹15 lakh. Keep ₹25 lakh liquid.

When this may not be the right answer

Someone with a government pension already has an annuity. Buying more locks money unnecessarily.

What to do next

Compute the floor Annuitise only that Choose joint life if married

Related questions

What is an annuity? Annuity or SWP? Should husband and wife choose a joint-life annuity?

Related Kerala Rising help

Senior-citizen services

Sources and what to verify

India Post / SCSS rules · IRDAI annuity product guidance · RBI deposit insurance (DICGC) limits · Kerala Social Security Mission and Social Justice Department for pension schemes Rates, limits and whether you may qualify change. Confirm with the official source. Ask Kerala Rising: Send us your parents' rough monthly expenses, their income sources and what lump sum exists. We will help you see whether it holds up. and what to organise before there is an emergency. WhatsApp +1 443 595 9000 · keralarising.com Kerala Rising › Seniors › Retirement · Retirement 7

Before you act

This page is general orientation, not personal insurance, investment, medical, legal, lending, tax, or professional advice. Rules, rates, benefits, and claim or application decisions can change. Confirm the current position with the named official source and use a licensed or qualified professional where your situation requires one. Kerala Rising does not decide whether you may qualify, approve claims, or promise an outcome.