The Pension Fund Regulatory and Development Authority (PFRDA) has changed the rules regarding the purchase of annuity at the time of exiting the National Pension System. Earlier, investors had to put the entire corpus in one annuity. Now, if the corpus size exceeds Rs 10 lakh, they can buy multiple annuities of at least Rs 5 lakh each. Instead of buying a single annuity, they can now buy a bouquet of annuities to meet their varied needs.
 
Diversify among insurers

On retirement, 40 per cent of the NPS corpus must go into annuities. What is not clear is whether the subscriber needs to buy all the annuities at one go, or he can buy one annuity at the age of 60, and leave the balance with NPS. “If you can leave a part of the 40 per cent that has to be annuitised with NPS, then you can buy immediate annuities at regular intervals. But if all annuities must be purchased at one go, you could buy an immediate annuity with th