Retirement Planning

Typically, people can earn and save throughought their active career life for current as well as future expenses. In retirement, income declines but life demands may remain constant or may even increase. Consequently, financial planning for retirement is absolutely critical. At Manifest Investments, we offer two main classes of products :

• Pension Schemes
• Annuity Schemes

National Pension System (NPS)

The National pension system or earlier known as the New Pension system , originated in the year 2004 in India. It has become a game changer, in the way the pension systems are administered in India. The system moved from the defined ‘benefit’ system to the defined ‘contribution’ system. The objective was to bring a control on public finances and managing fiscal deficit. The National pension system is a good example of the model of ‘Public – Private Participation (PPP)’.

The national pension system is also influenced by the social changes evident in India. Nuclear families with double income streams are becoming highly prevalent in India, especially in urban settings. Long-term financial management products like the pension system are becoming feasible as well as necessary. Modernisation of the economy has created more lifestyle goals than what the earlier generation has experienced. Advanced healthcare facilities have helped to increase the average lifespan of Indian citizens. These two significant factors, coupled with the need to manage public savings, have led to the creation of the National Pension Syste,.

There are four different types of models or variants of the National Pension System:

• All Citizen Model
• Government Sector Model
• Corporate Model
• NPS Swawalamban / NPS lite / Atal Pension.

For more information on the NPS please check on npsbooth.com

For individuals looking to plan for retirement, there are a variety of options. Annuities are one of them. An annuity is an insurance product that pays out regular income. It is often used as part of a retirement portfolio.

Annuity - Guaranteed pension for life

An annuity is a contract aimed at generating steady income during retirement, where in lump sum payment is made by an individual to obtain certain amounts immediately or at some point of future.

How Does An Annuity Work?

• The individual begins by making a lump sum investment in the annuity plan.
• The annuity then makes payments to the individual on monthly, quarterly, annual basis depending of his choice
• The income payout is determined by a number of factors, like age, tenure and mode of payout.
• The individual can opt to receive the income payments for the rest of his life or for a fixed period of time.

Income received from annuity is added to individual's income and taxed as per his slab .