The basic difference between elderly people who have invested in annuities and those who haven’t is the fact that the former group is unstressed about their financial stability and the way they are going to be living for the rest of their life. Annuities provide individuals a great investment option and allow them to invest their savings to create an investment portfolio that does not require managing and provides them the terms and conditions that suit them the best. One can invest in annuities in a regular and systematic manner or decide to buy them with a one-time payment. Since there are so many different types of annuities people can invest according to their financial requirements and demands from the investment. In case a person has not invested in an annuity and is close to retirement he or she can invest in an immediate annuity and begin receding income from it almost immediately.
There are many advantages of annuities for the elderly and here are just some of the reasons you should be investing in them for your old age:
- Annuities are a stable and secure investment that is low on risk. As long as the insurance company is solvent one’s investment is safe.
- Issues such as increased life expectancy and whether one’s savings will be enough for one’s life is something that bothers most people and annuities can help provide a solution to this problem. Annuities can provide income to the investor for a fixed period of time or for the rest of their lifetime.
- Depending on the amount of income a person would wish to have in their older years one can invest accordingly. The golden years should be comfortable and enjoyable and investment in annuities makes this possible.
- With annuities elder people don’t have to bother about managing their investment or having to watch the market.
- Annuities are tax deferred and thus the gains from the annuity are not taxed yearly but in fact only when the investor receives income from it or withdraws funds from it. This also helps the investment compound. Since elder people are in a lower tax bracket the tax benefits is an attractive aspect of the annuity.
- Annuities provide the option of leaving money for one’s heirs after the death of the investor.
- A couple can hold an annuity jointly and so after the death of one partner the other will continue to receive income from the annuity. This aspect of the annuity reduces a lot of worry and makes the investors feel safe in the knowledge that in the event of the death of one partner the other will be taken care of.
Annuities are the ideal solution for elderly people and those who are preparing and planning for their old age. This form of investment not only provides a regular source of income but also provides a sense of security and harmony.