The Importance of Guaranteed Income with a Retirement Annuity

Even though you plan for it for a large portion of your life, retiring is a huge change. After all, your entire life is flipped upside down, and work is no longer a priority. Deciding what you want to do as a retiree is important – do you want to volunteer, travel or just spend quality time with your grandkids? Whatever you decide to do after retirement, make sure that you are financially prepared, by saving and investing in an intelligent way. Strong savings and Social Security may be enough, but to really ensure a comfortable retirement, you should consider moving some of your savings into a retirement annuity.

First and foremost, a retirement annuity offers you guaranteed income for life. That means you’ll have monthly income until you pass away. You can never run out of income. Even if you are paid out the complete amount of your original deposit plus a significant surplus, you will still receive the same monthly payment until you die. How can this be?

The insurance company issuing the annuity looks at you – your age and gender – and determines your life expectancy, which also determines your monthly payout amount. If you pass away when you are younger than your life expectancy, the insurance company pockets the remainder of your original deposit (unless you require that the remainder be refunded to your beneficiary, which will reduce the amount of your initial monthly payments). If you outlive your life expectancy, then you continue getting a monthly check from the retirement annuity, even though you have received back your entire initial deposit.

Guaranteed income is crucial if you think that you haven’t saved enough money for retirement. To learn more about a retirement annuity, and to get the latest rates and quotes from the top insurance companies in the U.S., contact the Annuity Specialists at AnnuityAdviceOnline.com today at 1-888-837-4226.