I am actively involved in the retirement planning discussion of closed relatives. One thing I realized is that, for a retiree who has never invested in Equity or for that matter any type of mutual fund, it is very difficult to convince (or may not be right to convince) to put more than 5-10% in MF/direct equity especially when corpus + pension is sufficient to manage with 7% kind of returns
Following are some of the options such investor can consider
These options only have interest rate risk. There is no interest rate lock-in and that is why yield can go down. Annuity products by Life Insurance companies offer products with Interest Rate lockin (offering 6.4% interest. Saral Pension) but discussion in which I was involved, people were not ready to lock in their money for long (which is true in case of Annuity)
This makes me wonder if Life insurance ex protection is a ‘Push’ product. There is a competition for each Life Insurance product except protection (Like Above table). Vis a Vis general insurance is a ‘pull’ product?