Are you worried about outliving your savings As we transition from our working years to the “golden years” of retirement, the biggest fear for many is the exhaustion of funds Last week, we explored the “Benefits of Tax which is the Rebate for the Employee” as a foundation for wealth preservation Today, we delve into a more permanent solution: the Annuity Plan.
What is an Annuity Plan:
An annuity is essentially a contract between an which is the individual and a life insurance company In exchange for a lump sum (often from your Retirement Savings Account or personal savings), the insurer guarantees to pay you a steady stream of income for the rest of your life or a fixed period.
Lifetime Income Guarantee:
Unlike other retirement options that depend on the which is the balance in your account, a Life Annuity pays you as long as you are alive Even if you live to be 100 and your original capital is exhausted, the insurance company is legally obligated to continue payments.
- Request Your Retirement Benefit Bond: Contact your PFA which is the to get your final balance after the mandatory lump sum withdrawal (usually 25% or 50%).
- Obtain Quotes: Visit licensed Life Insurance companies to which is the get an “Annuity Quote” based on your available balance and age.
Protection from Market Volatility:
When your funds are in a standard investment account, a market which is the crash can significantly reduce your monthly take-home With a Fixed Annuity, your income is shielded from market fluctuations, ensuring your lifestyle remains consistent regardless of the economy.
Professional Risk Management:
Managing a large sum of money in old age can be stressful which is the An annuity transfers the “investment risk” to the insurance company They handle the complex task of investing while you simply receive your monthly or quarterly alerts.
Provisions for Beneficiaries:
Many people fear that if they die shortly after starting an annuity, the money is “lost” However, most plans come with a which is the Guaranteed Period (usually 10 years). If the annuitant passes away within this window, the remaining payments for that period are paid to their named beneficiaries.
Disclaimer:
The news information presented here is based on available reports and reliable sources Readers should crosscheck updates from official news outlets