Pension Annuities: Reliable Source Of Income After Retirement

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<h1>Pension Annuities: Reliable Source Of Income After Retirement</h1><strong> Author: <a href='http://www.articleseen.com/profile_Kevin Stelfox.aspx'>Kevin Stelfox</a></strong><br /><p>Pension Annuities are useful and beneficial instruments for retirement planning. Annuities are ideal programs that may help you to accumulate money on tax-deferred basis. Evidently, pension is considered as a significant source of financial help for retired individuals as it provides a steady source of income even after the event of retirement. Pension annuities are precisely instruments that help you transform value of pension into periodic source of income. Pension annuities offer you an opportunity to choose to obtain your regular pension income monthly, quarterly, half yearly or yearly. You can choose to pick income which remains the same without any fluctuation or you can also select income which increases every year either through a set percentage or inflation. It should be known that a pension annuity is a long term contract; hence, it is essential to be careful and consider all possible aspects before you purchase a pension annuity. Pension annuities help you save taxes until you start withdrawing your money. Unlike other programs such as pension drawdown or unsecured pension, pension annuities allow you to put amount that you desire without any limitations. You also have an option to choose a plan that offers lifelong income or even a plan that provides you income for certain period of time. Fixed annuities help you keep away from adversities of fluctuations of stock market rate; however, it should be remembered that these fixed pension annuities offer fixed rate of returns. Type of pension annuities available: There are different types of annuities available; hence while selecting an annuity plan it is essential to be selective in choosing your annuity scheme. Standard annuity plan is an annuity scheme wherein an investor is entitled to receive a fixed amount of income for the rest of his life after retirement. This income is determined and informed to the investor during the time of signing of contract. Profits Annuity is another type of annuity plan where the income that the investor obtains after retirement is said to be a part of initial investment of the customer. This annuity is considered to be risk inherent. Unit Linked Annuity is a plan which is depended on several types of risks and investments. This type of annuity is also influenced by market fluctuations. Most people also opt for Immediate Annuity which helps them save tax and by nature it is said to be cash annuity. Immediate annuity is related to the investor’s pension funds. Another type of annuity is Impaired Life Annuity which is dedicated to those individuals whose lifespan anticipation is considerably lesser as compared to other individuals of the same age. As people belong to different background, enjoy different lifestyle and habits, this type of annuity plan may vary according to these factors. Benefits of Pension Annuity: There are several benefits involved in purchasing pension annuity. First and foremost benefit is that it offers guaranteed income after retirement of the investor on low risk basis. These incomes are available in form of arrears or advance and can be obtained at periodic intervals. This is a onetime investment and you do not have to pay even when you start receiving your income. It is essential to check for possible financial complications before selecting pension annuities. </p><strong>About the Author:</strong><br />Annuity Calculator UK act as introducers to Independent Financial Advisers (IFA) who give specialist advice on <a rel="nofollow" href="http://www.annuitycalculatoruk.co.uk" >Pension Annuities</a> and to help you get the best annuity rates use an <a rel="nofollow" href="http://www.annuitycalculatoruk.co.uk" >Annuity Calculator</a>. - For Specialist Annuity Advice call 0800 043 6701 <p> Article Source: <a href='http://www.articleseen.com/Article_Pension-Annuities-Reliable-Source-Of-Income-After-Retirement_12334.aspx'> http://www.articleseen.com/Article_Pension Annuities: Reliable Source Of Income After Retirement_12334.aspx</a></p>

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