Increasing Income in Retirement with an Immediate Annuity

You may be making ends meet now with Social Security and a pension or other set income, but what about in the future? Will you be able to keep up with inflation? You could invest some of your savings in the stock market, but that brings possible risks along with the potential rewards. How can you supplement your retirement income without going back to work? Moving a portion of your retirement savings into an immediate annuity can help solve this problem, because a lifetime immediate annuity offers income for life, guaranteed.

A monthly payout from an immediate annuity can supplement already existing income and can never run out – in that way, an immediate annuity is similar to a traditional pension. For a lump sum, called a premium or principal deposit, an insurance company pays you a monthly sum for the rest of your life, whether that is 10 years or 30 years. Payments cease when you die in a traditional lifetime immediate annuity, however, you can add options to guarantee payment for a certain number of years or to transfer annuity payments to a surviving spouse.

Period certain refers to the number of years you require the insurance company to pay you. For example, if you purchase an immediate annuity with 15 years period certain, even if you pass away after five years, your estate or beneficiary receives the remainder of the period certain payments. You can also add a joint survivor to an immediate annuity policy, so that your spouse continues receiving annuity payments until his or her death. Both these options reduce the monthly payment amount, but can provide you reassurance that your loved ones will be taken care of in the event of your death.

If you are looking for a way to increase your income in retirement and have a portion of liquid savings that you’d like to use to guarantee income for life, you may want to consider an immediate annuity. It’s not an easy decision to make, so do your homework ahead of time by visiting the resources available on the AnnuityAdviceOnline.com Web site. Also, make time to speak to an Annuity Specialist by calling 1-888-837-4226. Our Specialists have information from insurance companies across the U.S. and can walk you through the immediate annuity purchase process.