The need for pension and annuity products in India is larger than ever before. The present population growth, increase in insurance awareness and the need for post-retirement cover have all prompted for a strong and effective pension system in India.
In accordance to the above mentioned points, IRDA has, in a circular dated 6th November 2009, constituted a 6-member working group, with Mr. Peter Akers as the chairperson, to examine the current status of annuity products and steps to strengthen the same.
Many countries are now moving towards introducing variable annuity products. It is quite popular in some mature economies, ex: USA.
The committee is expected to submit the report by January 31, 2010.
Definition of Variable Annuity: Annuity in which the amount of periodic payment varies according to the income generated by the assets in an investment portfolio. One can choose the investment options in which they would want their moeny to be invested.
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