Annuity – Arrange For Your Own Pension

By Author: Mike Anderson
Total Articles: 32
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Retirement is a time of life that should be only for relaxation and spending time with oneself. Most people all over the world work extremely hard to earn their living and to provide basic necessities for their families. For such people who work hard for most part of their lives, retirement is like a well deserved sleep after a long hard day. And sleep after work should be tension free as well as peaceful. But if you have worries about the future of yourself as well as your family since you have not managed to save enough for your future or if your pension is not enough to sustain you and your family or like in some cases, you would not be getting any pension at all, your retirement cannot be a happy one.

The dream of retirement days can turn in to a nightmare in case the above conditions are the situations you are in. there are many private companies that do not provide pensions or even if they do, the amount is really ridiculous. In such situation, what you can and should do is arrange for pension for yourself and that can be done with the help of an annuity scheme. You must be wondering what this ...
... annuity is all about and how it will help you arrange for your own pension. To explain briefly, you pay money in installments to the company from which you get the annuity plan, for a definite period of time and then after that stipulated time period is over, the company pays back the money to you along with the interest accumulated in installments or as a lump sum amount whatever was decided upon while signing the contract.

There are different kinds of annuities to choose from, there are fixed annuity, tax deferred annuity and so on. You can choose according to your specific needs and situation. Tax deferred annuity will help save tax on the monthly installments that you receive and hence a tax deferred annuity is more suited as a retirement pension plan for yourself. In general an annuity scheme pays your own money along with interest in monthly installments and this is the reason why it is considered equivalent to pension for retired people but you can choose to receive the money at once too. Consult your agent to know what kind of annuity scheme will be best suited for you before investing in one.