The Securities and Exchange Commission of Pakistan (SECP) has approved a new set of annuity products designed to provide stable and reliable income streams for individuals after retirement.
According to the regulator, the new financial products will allow employees and retirees in Pakistan to convert their accumulated savings into a regular monthly income. Officials say the initiative aims to improve long-term financial stability for citizens during their retirement years.
The newly approved offerings include life contingent annuities, deferred annuities, and guaranteed payment annuities. These products are designed to cater to different retirement needs, allowing individuals to choose options that best match their financial goals and expected retirement timelines.
SECP also announced plans to introduce hybrid annuity schemes, which combine lifetime income features with guaranteed payouts. This structure ensures that policyholders receive regular payments while also benefiting from a level of income security for a defined period.
The regulator noted that the introduction of these products comes at a time when rising life expectancy and inflation are increasing the need for sustainable retirement planning. Longer lifespans mean retirees must ensure their savings last for many years after leaving the workforce.
To broaden accessibility, the new annuity products will be available under both conventional insurance and Islamic takaful frameworks, allowing consumers with different financial preferences to benefit from the schemes.
Officials believe the move will strengthen Pakistan’s retirement savings system and encourage more individuals to adopt structured financial planning for life after employment.
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