Annuities – Helping You Have A Peaceful Retirement

By Author: Mike Anderson
Total Articles: 32
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People work hard their whole life for themselves as well as their families just to rest a little and spend their days in relaxation after retirement. But if they have to worry about money even after retirement, what is the use of retiring? They can as well continue working all their lives. To let people enjoy their remaining days after retirement peacefully, the pension scheme was started. Although usually pensions are much lesser than the salary you are receiving but you are fortunate even if you receive that amount. Most pf the people all over the world do not receive any pension at all; imagine the tension with which they retire. No matter how much you save in your whole life, money outflow without any inflow is a cause of worry surely, if not for anything then for a sudden financial crisis that might arise.

Annuities are a way by which you can arrange for an inflow of money after your retirement. It is very much like you are arranging for your own pension. You just need to pay money to a company offering annuity and they will pay you back along with the interest after your retirement. This is the ...
... general idea. There are different kinds of annuities though, fixed annuities; tax deferred annuity and deferred annuity. Each one is different from the other in a variety of aspects including the interest rate. Tax deferred
Annuity is preferred by most people since it is tax saving and hence you do not need to pay tax on the amount you receive after your retirement. Whereas, deferred annuity is suitable for people who need a payback within a short period of time. Usually with deferred annuity, you need to pay in more amounts since it is for a short while.

Each kind of annuity, be it fixed annuity or tax deferred annuity or deferred annuity, have their own advantages over the others as well as disadvantages over the others. But the main thing is that you will receive money when you would need it. It is suggested that you consult an agent to understand which kind of annuity will suit you, ask for quotations from different companies, and calculate the amount you will receive against the interest rate offered yourself, with an annuity calculator, do a thorough background research on the company and make a well informed selection.