ALL >> Business >> View Article
What Is An Annuity? - Annuities Explained
Simplified, an annuity is a regular income paid in exchange for a lump sum payment. Annuities offer you (and your partner) a sense of security for you retired life. Annuities must not be taken lightly though plus its always recommended that you take the advice of a professional before decide to take up any annuities.
How can you gain from an annuity?
It can give you (plus your partner or spouse) security to allow you to live the retirement you always dreamed of
The level of any annuities you take can be chosen by yourself (monthly, quarterly)
You spouse might receive benefits
What are the different types of annuities?
The main three catergories of annuity are:
Fixed Annuities
Variable Annuities
Indexed Annuities
Fixed Annuities
This option carries minimal risk and may provide a specific return for a fixed time period. These fixed rate annuities are perfect for older people that want a simple way to acquire a set amount of cash in retirement.
Variable ...
... Annuities
With this option your moneys can be divided and invested in different areas. The payment you will receive with this type of annuity depends entirely on how the underlying investments have performed. Whilst the risk value is higher with these types of annuities it also is the reason why the returns may be greater. When selecting a variable annuity you need to be prepared to take a little risk!
Indexed Annuities
Indexed annuities have a rate tied to a financial market index.
The different kinds of annuities often mean that it may be hard for individuals to decide if:
They really want an annuity
Which of the annuities available is best suited for their requirements
It is always advisable to obtain some expert advice from a financial advisor who should be able to guide you towards the annuity that is best suited for you (often according to your age, lifestyle, personality, finances etc.). You have to be satisfied that you have carefully considered all of the advantages and disadvantages so any annuity you choose is the one that meets your needs. Once you've bought an annuity there's no going back.
For this reason it is crucial that you choose your annuities carefully, if you do, there's no reason why you cannot fully enjoy your retirement without the money worries.
This article was written by R Deans on behalf of Robert Bruce Associates, leading independent financial advisors, and experts in annuities. For more pension advice, please visit rbaifa.co.uk
Add Comment
Business Articles
1. How Global Trade Finance Facilitates Cross-border Transactions And Reduces RiskAuthor: Riddhi Divan
2. Innovative Uses Of Nickel In Cryogenic And Marine Environments
Author: Online fittings
3. Implementing Predictive Analytics In Your Abm Toolkit
Author: SalesMark Global
4. Comparing The Top 5 Live Commerce Platforms For 2024
Author: Amy Williams
5. Data-driven Precision Marketing For Effective Demand Generation
Author: SalesMark Global
6. Supercharge Your Sales With Optimized Pipeline Velocity
Author: SalesMark Global
7. Best Japan Tour Packages
Author: bharathi
8. Adani Group Stocks Down 20%; Gautam Adani Indicted In Us Over Bribery Charges
Author: Bizzbuzz
9. High-performance Ss Round Bars: Addressing The Energy Sector's Needs
Author: Neelkamal Alloys LLP
10. The Role Of Modern Washroom Solutions In Maintaining Cleanliness
Author: ritika krishna
11. Why Choose Premium Taxi Services In Kochi?
Author: maya
12. Black Magic Astrologer In Kasaragod
Author: Sripandith05
13. The Health Benefits Of Adding Pineapple To Your Pancakes
Author: maya
14. Top Luxury Resorts In Kerala For Your Dream Vacation
Author: maya
15. How To Start Your Shopping Website In Doha: A Simple Guide
Author: maya