Retirement is a time when you ought to be fancy free and ready to take on a phase of life with freedom and less worries. However most of us are stressed about our retired years and wonder if our savings and income will indeed allow us to maintain the lifestyle we are used to. Rising prices coupled with increased life expectancy make things worse. What you need is an investment in annuities that will give you a regular source of income for the rest of your life. There are many different types of annuities and this allows investors the opportunity to select an annuity that offers terms and conditions that suits them. Most annuities provide investors a source of income after a few years when the annuity matures. The immediate annuities are however quite different and special.

Immediate annuities provide investors a source of income virtually as soon they make the investment. An immediate annuity is bought with a one-time premium payment and income can be received monthly, quarterly or yearly, as is suitable for each investor. Immediate annuities are tax deferred, that essentially means that tax is levied on the only that portion of the income that is considered as gains, while the rest of the investment grows well and isn’t taxed. Also the gains from the annuity is considered as ordinary income and taxed accordingly.

After retirement immediate annuities are an excellent way to supplement your other sources of income. You can even consider retiring early by creating a personal pension plan with an immediate annuity.