Planning a Safe Retirement With An Annuity

by Robert Cyne
(India)




Isn't it a wise decision for every retiree to set aside extra funds for ensuring pleasurable post-retirement days? Since time and tide waits for none, every working individual must have to pass through a peaceful retirement phase at one time or the other. Now, it all depends on the financial policy that can make a retiree lead life with ease and convenience after retirement. Gone are those days when pensions used to be the only source of income for retired individuals. Today, the interest rates for pension schemes have deteriorated so much that those willing to lead lavish lifestyles are turning their faces from such policies and are rather heading for annuities.

One of the biggest reasons of the increasing number of annuity applicants is these policies are absolutely independent of your employer as well as your employment. Rather, these lucrative policies help you accumulate considerable savings for the rest of your life. Those who are self employed can always go for retirement annuity and can improve their income at the end of every month.

Is Retirement Annuity Secured?

If you are deeply concerned about security, monetary schemes like retirement annuities can never betray you. It's one of the most productive long-term investment policies that can meet your daily needs and wants. Businessmen can also go for annuities and improve their chances to become rich even if their business comes at stake.

How Retirement Annuity Works

The first and foremost thing about retirement annuity is that the annuitant must provide a lump sum amount as investment. For this, he/she needs to get in touch with an insurance company and draw an agreement. One additional facility is that the annuitant can always pay extra to the annuity provider so that he can benefit in terms of tax deductions.



Retirement Annuity after Retirement

An individual while retiring is permitted to access up to one-third of the investment proceeds in the form of a lump sum. The remainder can then be utilized to buy an annuity policy. Now, if you are already having multiple retirement annuity policies, you can enjoy the facility to retire from each and every policy at varied rates.

For those who have just retired can always extract all their retirement benefits in one go. Well, this would lead to heavy tax deductions and you might not profit much. So, you should make use of annuity in such a manner that it can disperse all your outstanding payments thereby making you save money and keeping you within lower tax brackets.

So, if you are planning to retire, you should be focused and knowledgeable regarding your retirement policy. The most important thing is to do extensive researches and know the pros and cons of your retirement scheme. In this context, retirement annuity does not have risks. Well, if you are still in a dilemma, you can talk to a financial expert online.

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