ABSL AMC’s new SIP For Life is a powerful “whole life” proposition that can enable distributors to take their SIP drives to the next level by combining SIPs for accumulation phase of investor journeys with SWPs for their distribution phase.
SWPs are a very powerful solution to generate regular cash flows for retirees or any persons who need a regular cash flows to meet monthly expenses. Our industry has so far not been able to make as strong a mark with SWPs as we have with SIPs. These “whole life” solutions like SIP For Life are a great way to get investors to embrace SWPs.
Investors can choose any fund from the ABSL MF range for setting up their SIP and likewise for setting up their SWP upon completion of the SIP tenure.
Default multipliers have been provided to enable investors to estimate the quantum of SWP that they can start drawing down upon completion of their SIP tenures.
These multipliers – which are a multiple of the SIP amount – are linked to the tenure of the SIP. Longer the tenure of SIPs, higher is the multiple of your SIP amount that you can draw down without worrying about eroding your corpus too soon.
Outliving one’s savings is emerging as one of the biggest risks for retirees as medical science increases life expectancy and inflation erodes purchasing power of one’s savings over time.
Planned propositions like SIP For Life highlight to investors the need to start saving early and also showcase how they can stay ahead of inflation in their distribution phase with intelligently set up SWPs on sizeable SIP corpuses built over time.