When you are young, there are personal as well as professional responsibilities that rest on your shoulders. And when you are old, you are free from all kinds of duties and responsibilities, but still the individuals are found to be tensed. Fulfilling responsibilities is quite tough, as a result of which the individuals during their young age suffer from huge tension. Many people wonder about why actually the old individuals are so worried, in spite of being free from all earlier responsibilities. The main reason behind this is the financial disturbance which restricts them from fulfilling their essential needs and requirements. Retirement annuity is the plan that comes into focus in such scenario.
Retirement annuity is a product that is offered by the insurance companies and signed by the annuitant seekers, once they agree to all the terms and conditions specified in the contract. There are number of schemes that are available. The retirees, however, are free to make a choice based on their suitability and affordability. With their lifetime savings, the retirees buy the annuity products and ensure a regular stream of income based on the amount with which they purchase the retirement annuity. There are several companies that exist in the world to offer the annuity deals, of which an individual should choose the one with best facilities.
The annuity rates are the most essential things that are required to be taken into due consideration before one chooses any annuity deal. When you retire, you think your pension will provide you everything that you desire, but with the passage of time, you realise that the pension amount is quite insufficient. In such a situation, whatever your savings are, you can utilise all of them to ensure an income for lifetime without any delay or complications. Retirement annuity has been designed to help the retirees in all possible ways and thereby assure them of a convenient and financial independent life after retirement.
Retirement annuity is available in immediate mode and even in deferred mode. In case of the former, the retirees start receiving the income as soon as they pay the lump sum to the insurance companies, while in case of deferred annuity, the individuals can postpone he receipt of the income and are also not expected to pay any taxes on the interest until they start withdrawing the amount from the retirement annuities fund. Fixed annuity allows a fixed income throughout the period of income as specified by the annuitant, whereas, variable annuity income fluctuates with the fluctuations in the annuity rates as per the changing market value.