New Delhi, Sept. 11 -- Retirement planning is not just about building a large corpus that looks sufficient on paper. It is also about ensuring that the money lasts throughout your lifetime and provides a regular income after you stop working.

This is where annuity plans can play a role, by converting a lump sum into a stream of payments over a specified period or for life, depending on the plan. Though it sounds like a suitable approach, there is a trade-off.

Once you buy an annuity, your money generally becomes less flexible, as the lump sum is converted into a regular income stream. This makes it important to choose an option that suits your retirement needs and financial circumstances.

First, an individual is required to make a lump...