Pension Annuity
A pension Annuity is an insurance product that pays you a guaranteed income for life. When you retire, you can choose to use your pension savings to buy an Annuity from an Insurance Company. After you deposit your money with an Annuity provider, you start receiving an income immediately. A Pension Annuity is also known as an immediate annuity.
Usually, Annuity payments cease on death of the retiree with no lump sum benefit payable at death. To mitigate against losing your savings in event of an early death, you choose a guaranteed period ranging from 1 to 25 years. In event of an early death, your beneficiaries receive an income for the balance of the guaranteed period.
You can opt for a joint life Annuity to provide you with an income and upon your death, to continue providing an income to your spouse for the rest of his or her life. You have a choice of your spouse receiving the same or a reduced amount of income after your death (known as reversionary rate).
The income you get from your Annuity depends on the following factors:
As you retire, it is your responsibility to arrange your retirement income by choosing a provider and income option. Compare Annuity offers from various providers and choose the best solution for your needs.
At retirement Solutions, we will help you choose the right Annuity for you.
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