NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Retirement Planning Basics
In retirement planning, the 'accumulation phase' of a client's life refers to the period during which the client:
The accumulation phase is the period before retirement when the client builds a retirement corpus through regular savings and investments. Withdrawals happen later in the distribution phase, so drawing income is not accumulation.
- AWithdraws regular income from the retirement corpus
- BBuilds the retirement corpus through savings and investments before retiringCorrect
- CTransfers assets to legal heirs through a will
- DConverts the entire corpus into an annuity
Explanation
The accumulation phase is the working years when the client saves and invests to build the corpus. Withdrawing income from the corpus belongs to the distribution phase, and estate transfer or annuitisation are separate matters.
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