a) withdraw one third of the fund value as lump sum and the balance has to be utilised to purchase annuity (fixed income). OR

b) you purchase annuity with the entire fund value.

This plan has a lock in period of 5 years which means that if you surrender it before the completion of 5 years, it will remain locked in until the completion of 5 years.

For your long term investment to generate income during your retired life, you can invest in a balanced fund based on your risk tolerance during your working years. Choose a top-rated balanced scheme and start investing every month via a Systematic Investment Plan (SIP) if you a first time investor in mutual fund. However, if you are familiar with the stock market, you can invest in a diversified equity mutual fund scheme too. You must choose the SIP route as this will help you to average your purchase cost and enhance your returns. 3 years ahead of retirement, you can withdraw the accumulated money and invest in regular income options for a pension.