ISLAMABAD: Employees in Pakistan now have the opportunity to convert their lifelong savings into a structured monthly income after retirement, following the introduction of a new system approved by the Securities and Exchange Commission of Pakistan (SECP).
The new annuity products aim to strengthen the country’s retirement system and provide retirees with a reliable source of income during their later years.
According to SECP officials, the products include life-contingent, deferred, and guaranteed payment annuities, offering retirees both lifelong income and assured payments.
Under the new system, retirees can now transform their accumulated savings into a predictable monthly income stream, helping them manage financial challenges arising from inflation and increased life expectancy.
SECP further stated that these annuity products will be available under both conventional insurance and Islamic finance (Takaful) frameworks, allowing individuals from all segments of society to benefit according to their preferences.
Officials added that the introduction of these products will not only strengthen Pakistan’s retirement system but also promote financial independence for the elderly.
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