Retirement Intermediate

Annuity

💡 In plain English: A financial product that converts your lump-sum retirement savings into a monthly income for life (terms set by the annuity provider).

Definition

A contract with an insurance company where you pay a lump sum and receive regular payments, either for a fixed period or for life.

📌 Real-World Example

At retirement, you use ₹30L from NPS to buy an annuity. The insurer pays ₹15,000/month for life. You can never outlive this income, but rates are locked and often low (3–5%).

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Related Terms

Safe Withdrawal Rate (SWR)
The percentage of your portfolio you can withdraw each year...
Retirement Corpus
The total savings you need before you can stop working — big...
Pension
A regular income in retirement, usually from a government scheme...
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⚠️ Educational Content: All definitions and examples on this page are for educational and consultancy reference purposes only. They do not constitute financial, legal, or investment advice. Moneykar is not registered with SEBI, CBUAE, SCA, or any financial regulator. Consult a qualified professional before making financial decisions.

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