Annuity for retired people - What are the common annuity plans

Annuity for retired people - What are the common annuity plans

Self employed people, businessmen, and people working for companies which do not have any provisions for pension spend sleepless nights before their retirement thinking about the days after retirement. Where the ideal scenario should have been that after so many years of hard work, the years after retirement should be peaceful and relaxed. It is what every single working person on earth dreams of, to fulfill the desires that were kept pending due to work pressure and other responsibilities. But with no income after retirement, it remains a distant dream for people with no pension. Even people who receive pension, if the sum is small it is difficult to tend to the families needs and maintain a happy and healthy lifestyle. For such people annuity is a life savior.

If you are wondering what this annuity is and how it might help you and your family after your retirement, here is a brief explanation of annuity for you: annuity is a plan, opting for which you pay a certain amount of money every month while you are working, without getting any returns. And after you retire the company from which you have bought the plan from gives you a certain amount of money based on what you have been paying earlier. You would not need to continue paying the installments once you retire. It is equivalent to receiving pension, the only difference being that you can choose the amount of money you want to receive after your retirement and pay according to that.

There are different kinds of annuity plans and you can choose the one that suits your requirements and budget. The two most sought after and popular annuity plan are tax deferred annuities and immediate annuities. With tax deferred annuities, you can save tax where as immediate annuities are those on which you will get immediate returns. Suppose you have opted for an immediate annuity plan. You will start to get return immediately after the first premium payment. This type of plans are necessary for people who will be retiring soon and wants to buy an annuity product that will give them immediate returns. Generally immediate annuities plan have single premium payment.

There are other plans of retirement annuity too and you can ask your agent for more information on them or take the help of the Internet to gather information about all the annuity plans. To help you calculate the amount of money you need to pay every month for different types of annuity plans, to get a desired amount after retirement, there are annuity calculators available online. There are numerous websites of different companies selling retirement annuity plans that have such calculators. Hence calculate the sum, buy an annuity plan that suits you and spend your retirement days the way you want to without worrying about money as that is already taken care of. Just make sure you do a thorough background check of the company you are buying from just to be safe. Also talk to an expert in case you have any queries.

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