Worrying About Your Future? Retirement Annuities Are Here To Help

By Author: Robert Cook
Total Articles: 111
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It is extremely important to save money for the future. Through a retirement annuity things become much easier for you. All you need to do is invest in an investment plan when you are earning enough cash to sustain livelihood. At the time of maturity you get an amount which is almost tax free. Experts say retirement annuities are life savers for many older retired people.



This form of investment yields return in two ways. Either you can receive a lump sum at a go after maturity or collect cash at a certain interval, say monthly or quarterly. The total time period is very important. Obviously, if you pay more, you will receive more. There are two types of annuities available in the market – immediate annuity and deferred annuity. In the former scenario, you will receive payments just after initial payments whereas in the later the money is accumulated for a certain period.



There are a host of retirement annuities on offer throughout the world by various financial institutions. In India, some of them are from ICICI Prudential, ...
... TATA AIG, Bajaj Allianz, LIC, HDFC, etc. Also through annuity calculators, you can easily compute the amount of your retirement annuity. Calculators need average salary and a small calculation which you can perform on your own.



So the big question is when will you invest? The answer is, when you think it is right to start investment. Previously, most people invested the major portion of their income into stock. But now, they are spreading to retirement annuities which are less risky. Equity-indexed annuity among others is such which is very popular nowadays. There is an assured return and this reacts to stock market fluctuations every time.



A retirement annuity provides a better return than conventional investment options. Since it is long term, make sure you choose the best company which has the capacity to sustain for such a vast period of time. Also make sure you do not miss the payment deadlines.



We have discussed the advantages but there are disadvantages as well. Most people invest here by only seeing the return. However at times, the return could be pretty mediocre. Also, while the annuity is continuing you do not have to pay tax but at maturity, you have to. Thus, you may gain less and spend more for these retirement annuities. So research and decide before investing in a retirement annuity.