I am 50 yrs of age and have a decent portfolio in mutual funds. Now I want to plan my retirement with a good Pension plan which can give me fixed guaranteed returns on my retirement. I have gone through TATA AAIA LIFE INSURANCE FORTUNE GURANTEE PLUS plan and I liked it. Can you please advice should I go for it.
Ans: Before making any decisions, remember that guaranteed returns policies might seem attractive but they have limitations as well, so look into the plan's flexibility, costs, and how well it suits your retirement lifestyle. I suggest thoroughly checking the TATA AIA plan and opt for it only if it fulfils all of your requirements. Moreover, don't rely solely on guaranteed returns, as unexpected expenses and inflation could arise. Compare it with options like NPS and annuity plans, and talk to a financial advisor for personalized advice.
I recommend considering Systematic Withdrawal Plans (SWP) in mutual funds for your retirement strategy. SWP allows you to regularly withdraw a fixed amount, offering flexibility and the potential for market-linked returns. It combines stable guaranteed returns with the chance for higher gains from mutual funds. Make your decision after careful thought and professional advice.