Retirement Annuities
by admin on 16/12/08 at 7:25 am
Unless you are a millionaire, chances are you have probably been caught up in the retirement savings dilemma at some point in your life. If not, then be prepared for a big discussion on the topic in the coming years. Retirement saving is something we all have to do, as it’s a highly publicized fact that in a few years time, governments will not be able to provide the same level of support as they currently do to retirees.
It is for this reason that I will take the opportunity to introduce a set financial instruments known as retirement annuities. The idea here is that you take out a retirement annuity policy a number of years before your actual retirement, and pay a pre-determined amount to the insurance company on a regular basis. In effect, this acts as a savings scheme. Then, on the very day that you choose to retire, you contact the insurance company, and that money begins coming back to you. The only catch? You will receive an identical amount every week until the day you die. This is great if you live for another 40 years, but it’s obviously a waste if you only live for 2.
Ultimately, the decision is up to you. At least the option of retirement annuities is open, should you want to consider it.
