New products reduce financial uncertainty, help retirees convert savings into regular income stream<\/p>\n
ISLAMABAD: <\/p>\n
The Securities and Exchange Commission of Pakistan (SECP) has approved several new annuity products to strengthen retirement income security and support the development of Pakistan’s annuity market.<\/p>\n
The approved products include life-contingent annuities, deferred annuities, annuities with guaranteed payments and hybrid annuity structures combining guaranteed and lifetime income benefits.<\/p>\n
These products will help retirees convert their accumulated savings into a regular and predictable income stream after retirement, reducing financial uncertainty in later years.<\/p>\n
The decision follows consultations with stakeholders in the insurance sector and addresses a key gap in Pakistan’s retirement framework.<\/p>\n
Traditionally, the retirement savings products in the country have focused mainly on the accumulation of savings during a person’s working life, while limited options have been available to convert those savings into steady post-retirement income.<\/p>\n
This gap has increased financial risks for retirees, particularly in the context of rising life expectancy and persistent inflation.<\/p>\n
The newly approved annuity products are designed to provide flexible retirement income options. Life-contingent annuities provide payments for the lifetime of the person concerned, while deferred annuities begin payments after a specified period of deferment. Annuities with guaranteed payments ensure regular income for a fixed period and hybrid annuity structures combine guaranteed payments with lifetime income benefits.<\/p>\n
The products will be offered by the conventional life insurance companies as well as Takaful windows and full-fledged Takaful operators, ensuring availability in both conventional and Shariah-compliant segments. More insurers are expected to introduce similar products in the coming months.<\/p>\n
The initiative is also aligned with the government’s broader policy of shifting from defined-benefit pension systems to defined-contribution pension schemes, where annuities play a key role in converting retirement savings into stable and predictable income streams.<\/p>\n","protected":false},"excerpt":{"rendered":"New products reduce financial uncertainty, help retirees convert savings into regular income stream ISLAMABAD: The Securities and Exchange…\n","protected":false},"author":2,"featured_media":347145,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[72,176,61,60,4212,174,175],"class_list":["post-347144","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-finance","tag-ie","tag-ireland","tag-latest","tag-personal-finance","tag-personalfinance"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/347144","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=347144"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/347144\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/347145"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=347144"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=347144"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=347144"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}