subject: Lifetime Annuities – A Lifetime of Peace [print this page] Lifetime Annuities A Lifetime of Peace Lifetime Annuities A Lifetime of Peace
When it comes to guaranteeing one's peace of mind after retirement, savings, pensions and annuities are the first things that come to mind. Typically, most people stick to keeping their pension as lumpsum, while some others choose to exchange this lumpsum for an annuity, i.e. get paid a regular income for the rest of their lives, no matter how long they live. These are called Lifetime Annuities and are one of the best ways to secure life after retirement. If you've been toying with the idea of looking for good pension annuity rates then this article explains everything you need to know.
A lifetime annuity guarantees you income for the rest of the life, as long as you live. This income can be the same everytime, or increase with every year, as per your choice. How much income you receive depends on a lot of factors, like:
The amount in your pension fund that you exchange for the annuity.
Your age at the time of contracting; you get more income as you age.
Your lifestyle; if you are not keeping so well, you could stand to get more than normal income
Pension annuity rates, i.e. the interest rates that the annuity provider calculates your income with. Annuity rates are subject to change along with market trends and financial regulations. In keeping with that, different providers are able to provide different rates and benefits.
The income you receive also depends on the kind of options you choose with your lifetime annuity.
There was a time when men and women received different incomes from a pension fund of the same size, but now gender is not a discriminating factor for pension annuity rates.
Lifetime annuities allow you to choose from two options:
Single or Joint Annuity: A joint annuity allows for your spouse or partner or dependent children to continue getting income after your death. A single annuity, as the name suggests, ceases to pay out income after your death, unless there is a guarantee period. With a joint annuity, your spouse/partner/dependent children are entitled to receive a proportion of the income your pension annuity rates used to give out either 100%, 2/3rds or 50%.
Enhanced or Impaired Life annuity: if you suspect that a health condition may reduce your lifespan, you could opt for an enhanced/impaired life annuity which will give you a higher than normal income. Many health conditions like cancer, stroke, diabetes or even obesity and smoking can qualify you for an enhanced pension annuity rate.
Level or Escalation Life annuity rate: If you suspect that the rate of inflation might mar your spending power, you could opt for an escalating annuity, which pays out less first and increases over time. A level annuity pays at the same pension annuity rates all through the years.
With so many ways to customize it, a lifetime annuity is definitely one of the best investments for your retirement. To find the best pension annuity rates out there, take the help of a website that offers comparative quotes across a number of providers. This will help you save time and will make the process extremely easy as well. Before you know it, your retirement will be secured and your life, comfortable.
