Whether you’re going to retire soon or still have many years of work ahead of you, planning financially for retirement is very important. The earlier you can start planning, the better. With an unpredictable economy, saving can be difficult, so get some help from an annuity and continue to receive guaranteed income even after you retire.
What Exactly Is A Retirement Annuity?
Basically, an annuity is a financial contract that you buy and pay premiums on until your retirement, when you can start receiving this money back, with accumulated interest. After retirement, most people receive annuities in the form of monthly payments. This means an annuity is like receiving a pension that you have arranged for yourself. The payments are continuous and guaranteed. The sooner you arrange for a retirement annuity, the more money you will save in the long-term.
Don’t Plan to Rely Completely on Your Pension
Some pension plans are great, but many are lacking, and yours could leave you with financial strain. While a pension can give you base funding for your retirement, an annuity is a great financial step that will help balance out any financial problems you might encounter. It’s always best to be prepared, even if it seems unnecessary right now.
A Retirement Annuity Keeps You and Your Money Safe
With a retirement annuity, you won’t be able to take money out of the annuity until you retire. This is a very safe way to save, as you will not be tempted to withdraw funds before you really need them. An annuity keeps your money safe because it is such a low-risk investment. You pay premiums, that money collects interest, and you receive your payments and the accumulated interest when you retire. They keep you safe because the return is steady and guaranteed. You will not have to worry about when an investment is going to pay out, as you can set up an annuity simply to pay you in installments, which will allow you to make financial plans accordingly.
There Are Different Types of Annuities
It’s important to know that annuities come in many different forms. Also, these different types of annuities carry different rates. The type you need depends on many variables. Some annuities are more complex than others, allowing for changes to the annuity in certain situations, while others simply pay a monthly installment to the buyer. In order to receive the best rates and make sure you have an annuity that is going to provide you with all that you need, you should speak with an annuity advisor. They have professional experience, and will be able to find you an annuity that fits your retirement needs.
Retirement requires a lot of planning, but with an annuity, you can feel good knowing you have secured your financial future. With higher life expectations, and an unpredictable economy, a retirement annuity is a safe way to save. Talk to an annuity professional today, and start planning for your financial future!
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