Market believers can also build a strong pension, says expert

Retirement planning need not force a choice between market-linked investments and guaranteed income products, according to retirement expert Sarkar. Writing in businesstoday.in, Sarkar said investors can sequence them according to their life stage. Younger investors can focus on growth assets to build their corpus, while those nearing retirement can gradually convert a portion of wealth into annuities to secure essential expenses.

A major risk of relying solely on market-linked investments is a sharp downturn just as retirement begins. Sarkar described annuities as an economic shock absorber that protects core living expenses from market falls. Fixed annuities provide predictable payouts, while variable annuities combine guaranteed income with market-linked growth.

Under the National Pension System (NPS), subscribers retiring at 60 can withdraw up to 60% of their corpus as a lump sum, while at least 40% must buy an annuity. Sarkar also highlighted joint-life annuities for couples, ensuring income continues for the surviving spouse. The key message: retirement planning needs both wealth creation and income protection.