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Retirement Annuities or Retirement Annuity Helps in Stabilizing Income
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Posted On :
Jan-11-2012
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Article Word Count :
425
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If you are worried about your income after retirement then nothing can be better than Retirement Annuities or Retirement Annuity because it helps in stabilizing income post retirement.
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Life after retirement is really difficult if you have not planned your finance efficiently because the income of a person reduces and it becomes very difficult for him to lead their life with the small amount of pension in their hand. The amount of pension is so less that it is not possible to meet their daily requirements. Thus, the need for an extra income arises. You will be able to get this additional income if invest in retirements annuities.
A retirement annuity is provided by insurance companies. While purchasing it you must go through all the terms and conditions mentioned in the agreement and also gather other relevant information about them. Gathering information about them will enable you to know about various payout alternatives provided by the company for making the income options convenient for you and other retired people. The most important benefit of retirement annuities is that it allows you to choose the time period for which you want to receive income. You can either choose to receive income for your lifetime or for a particular period up to which you want to avail income benefits provided by this plan.
In a retirement annuity you are required to make the entire payment together while purchasing it and you can start receiving regular income. Though the payout starts within thirty days of purchasing the plan but many times it can take even a year for the payment to start. Purchasing retirement annuity plan will make you financially independent and you will not have to depend on your children for financial requirements after retirement. Thus, in this way you will be able to secure your future as well as your spouse’s future.
There are two types of retirement annuities: fixed and variable. If you choose fixed retirement annuity then the income which you will receive will remain constant and will never change. The amount received by way of this annuity depends on the amount deposited by you and the rate of interest at the time of purchasing the plan. However, if you choose variable retirement annuity then the amount which you will receive will continuously keep on changing on the basis of the performance of retirement annuity in the stock market. This plan is suitable for those who are engaged in other income earning procedures and are not solely dependent on retirement annuities. Thus, retirement annuity plans are really helpful in stabilizing the income of the people after retirement and make them financially independent.
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Article Source :
http://www.articleseen.com/Article_Retirement Annuities or Retirement Annuity Helps in Stabilizing Income_132024.aspx
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Author Resource :
Robert Cook is a business consultant who has good information on retirement annuity . For more information on retirement annuities he recommends you to visit www.totalreturnannuities.com/.
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Keywords :
Retirements Annuities, Retirement Annuity,
Category :
Finance
:
Investing
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