Retirement is an expected phase of our life. Each one of us is responsible for the security and planning of our future. Annuity is the best option which can protect you and your assets from unforseen problems.
Annuity is a long term retirement option. It is also termed as an agreement between you and the insurance company. You are required to pay regularly into the retirement funds which can be reimbursed after your retirement. The amount you pay into your retirement funds are tax exempted till the maturity.
Pension annuities can be paid either in a lump sum or in installments over a period of time.
Annuities add more worth to your exeisting retiirement plans and can extend further benefits such as
- Get death cover for self and other beneficieries
- Expand your investments
- Prevents your assets from getting outlived
- Saves your taxes on a long term
- Avail regular income even after retirement till death.
When you purchase an Annuity you are bound to give up your pension funds forever by bartering it for a standard income. You can avoid this by adopting a third way annuity plan which lets you get regular income until the age of 75 and allows you to purchase another annuity. However before buying any such product take the help of an IFA.