What is annuity? Younger people may not know sufficiently about it. But ask financial advisors, and they will invaribly suggest a retired person to buy an annuity. Annuity is not a popular investment vehicle for people below 60. But after retirement, it is hard to ignore annuity. What makes annuity such a desirable investment option for retired people? Generating a “steady source of income” is a first priority for retired people. Annuity is that investment vehicle which generates a steady source of income. In the market there are other investment options available, which also promises steady income generation. So why annuity is so popular? No, I am not going to say that its rate of interest is high. It is popular because it is tailor made for retired people (like POMIS and SCSS ). When one buys an annuity, he/she must be assured that, “income generation” is the only objective for the fund manager. Unlike other hybrid income generation plans, where conflict ...