Pension Annuity - a Reliable Way to lead Post Retirement Life

An insurance company will give you an annual income in return of a lump sum you have deposited with them. The insurance company in this case is the annuity provider and the annual income which you would receive is the pension annuity. You would receive this fixed amount of money for the rest of your life. This scheme is very good if you live long. The number of years you live, more you will be able to enjoy the annuity from the lump sum deposited by you

When do you need to buy one? 

There is an assigned age for buying annuity for pension. Amendments have been made with regards to the age limit. You can purchase your annuity right at the beginning of your retirement, irrespective of your age. However, if you retire earlier, in that case, it won’t be a smart thing to buy an annuity. So its very important to invest in the right plan and for that you must consult an expert who can suggest you the best plan according to your retirement age. 

Calculation of Annuity Rate 

There are a number of factors which determine the rate of the annuity which is being offered to you by the insurance company. These factors include complicated calculations and various other kinds of assessments. Here are some of the factors

• You are likely to receive less income if you are younger

• Men tend to receive a better rate on annuity as they don’t usually live as long as women do

• If you are suffering from a serious medical condition, then you are likely to receive more income. 

Apart from these factors, there are other external matters which also influence the annuity rate 

On the whole, the annuity is one of the reliable sources of income during your retirement life. You are sure to receive a certain sum of money on a yearly basis. However, you need to be careful while selecting an insurance company. You must opt for the one which is offering the best rates for you. Apart from rate you must also read all the terms and conditions carefully and invest only after proper checking. There are various authentic financial companies who offers the best return and keep all the terms and conditions transparent. Get in touch with them and find out the suitable option for a healthy life after retirement.