The correct answer is D. Encashment.
Encashment is the process of converting a financial asset into cash. In the context of retirement, encashment refers to the process of withdrawing a portion of the accumulated amount from a retirement fund. This can be done in a lump sum or in installments.
Switching is the process of transferring money from one investment to another. In the context of retirement, switching refers to the process of transferring money from one retirement fund to another. This can be done for a variety of reasons, such as changing investment goals or fees.
Commutation is the process of converting a pension into a lump sum payment. In the context of retirement, commutation refers to the process of converting a defined benefit pension into a lump sum payment. This can be done at any time, but it is most common at the time of retirement.
Taxing is the process of applying taxes to income. In the context of retirement, taxing refers to the process of applying taxes to income from retirement accounts. This includes income from pensions, annuities, and IRAs.
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