Short answer Plan a mix of guaranteed and flexible income sources: (1) maximize state/occupational benefits (EPF/ETF/public pensions/elderly allowances), (2) convert part of savings to an annuity or insured pension for a reliable monthly payment, (3) keep a liquid buffer and part invested in income-producing assets (fixed deposits, high‑quality bonds, dividend stocks or unit trusts), and (4) consider rental income, part‑time work or phased retirement to reduce drawdown risk.

Why you should do this (context for Sri Lanka)

• The Employees’ Provident Fund (EPF) and Employees’ Trust Fund (ETF) are the main employer-based retirement savings in Sri Lanka but typically pay lump sums and often produce insufficient monthly income if left as a one-off withdrawal. Relying only on EPF/ETF lump sums risks running out of money and gives no longevity protection. (ceylontoday.lk)
• There are public cash transfers for vulnerable elders (e.g., elderly assistance / Samurdhi / PAMA), but coverage and adequacy are limited — these are safety nets, not full retirement income. (IPS.lk)
• Private insurers and life companies in Sri Lanka offer retirement plans and annuity options that can convert a lump sum into a regular pension-like income (different payout terms available). Use them to secure part of your basic monthly needs. (softlogiclife.lk)

Practical step-by-step plan (checklist)

1. Work out your retirement income needs

   • Estimate essential monthly expenses (food, utilities, housing, medicine) and discretionary spending.
   • Include an inflation assumption (prices in Sri Lanka have historically been volatile — plan conservatively).

2. Inventory your current sources

   • EPF/ETF balances (obtain latest statements), any public pension or employer pension, savings, property, investments, life insurance, family support.
   • Note ages when EPF/other benefits are payable and any early withdrawal rules. (ceylontoday.lk)

3. Build a guaranteed “floor” for essential expenses

   • Use part of lump sums or accumulated savings to buy an annuity/insured pension from a reputable insurer to cover basic monthly needs. Compare providers’ solvency, product terms (life annuity, joint life, deferred, return‑of‑capital) and inflation indexing. (softlogiclife.lk)
   • Keep official benefits and elderly allowances factored in as part of this floor (but don’t rely on them as the only source). (IPS.lk)

4. Preserve liquidity and an emergency buffer

   • Keep 6–24 months of essential expenses in liquid, low‑risk accounts (high‑interest savings, term deposits, short‑term government or bank instruments). This avoids forced sales when markets down.

5. Diversify income-producing investments

   • Consider a mix of:
     • High-quality fixed deposits / government Treasury bills and bonds.
     • Low‑cost diversified unit trusts or dividend-paying equities for some growth and income.
     • Real-estate (rentals) if you can manage or use a property manager — rental income can provide steady cash flow but has vacancy/maintenance risks.
   • Balance higher-return but higher-risk allocations with your life expectancy, health, and capacity to recover from market losses.

6. Consider phased retirement or part-time work

   • Delaying full withdrawal, working part-time or freelancing reduces pressure on savings and lets some assets keep growing.

7. Manage withdrawals safely

   • Use a sustainable withdrawal rule (e.g., a conservative percentage of portfolio each year, adjusted for inflation) rather than spending lump sums quickly. Tailor the rate to your risk tolerance and remaining life expectancy.

8. Protect against big risks

   • Health: ensure adequate medical insurance or a dedicated medical fund.
   • Longevity: annuities help protect against outliving savings.
   • Inflation: include some growth assets (equities, inflation-linked bonds) to preserve purchasing power.

9. Estate, tax and legal matters

   • Make or update a will, nominate beneficiaries for EPF/ETF where allowed, and ensure powers of attorney or health directives are in place.
   • Check current tax rules for pensions/withdrawals and for inheritance — get local tax advice if needed.

10. Get professional help

• Talk to a certified financial planner/advisor licensed in Sri Lanka or an advisor who understands Sri Lankan pensions, tax and insurance products. They can run cash‑flow projections and compare annuity and investment product offers. If you’re considering annuities or life products, compare product guarantees and insurer strength. (softlogiclife.lk)

Quick practical examples of allocations (illustrative — adapt to your situation)

• Conservative: 40% annuity to cover essentials, 30% fixed income (bonds/FDs), 20% equities/unit trusts, 10% cash buffer.
• Balanced: 30% annuity, 30% bonds/fixed income, 30% equities/unit trusts, 10% cash buffer. Adjust by age, health, and risk tolerance.

How to get started this month

• Request latest EPF/ETF statements and verify eligibility/ages for withdrawal or annuity purchase. (en.wikipedia.org)
• Make a simple budget of essential vs discretionary spending.
• Contact 2–3 reputable insurers/banks about annuity/retirement income products and get written quotes with payout amounts and terms. (softlogiclife.lk)
• If you have substantial assets, consult a licensed Sri Lanka financial planner or lawyer for a personalised plan and for tax/estate advice.

Useful references (to read next)

• Reports and analyses on EPF/ETF reform and adequacy (World Bank / local coverage). (ceylontoday.lk)
• Product pages from major Sri Lankan insurers for annuity/retirement plans. (softlogiclife.lk)
• Local social assistance summaries (elderly allowances / Samurdhi / PAMA). (IPS.lk)

If you’d like, I can:

• Draft a simple retirement income worksheet you can fill in (monthly needs vs. income sources).
• Compare example annuity quotes or run a sample withdrawal plan for a hypothetical EPF lump sum — tell me the amounts and ages and I’ll run numbers.