Sunday, 19 June 2011

Increasing Your Income with a Retirement Annuity

By Ashley Porter


Buying a solid retirement annuity that fits your needs and situation can be a practical way to strengthen retirement security through the guaranteed income that these life insurance products generate. Tools such as these are important to the retiree, especially as many individuals are not confident that they will have enough money with which to retire comfortably. In light of the longer life spans many seniors expect, this insurance product can also allow you to diminish the chances of running out of money because you may live up to three decades after you quit the workforce. Companies such as Puritan Financial Group can help in any situation to better prepare you for retirement.

Studies from Experts

Experts from a MetLife research found that at least one stable income source is directly proportional to the level of comfort and satisfaction that a senior citizen will experience when he or she retires. This also applies not only to those people who earn mid-level to lower income bracket but also among the retirees who earned more than the others. Aside from that, the research also show that retirees who get their income from guaranteed sources such as pensions and annuities are relatively more comfortable when they retire in comparison to those who get income from stocks, which are riskier, growth-oriented investments.

Deferred annuities are usually best for those who are decades away from retirement, as they can make the most out of their money if they do not withdraw from the annuity until it matures. If you are a few years away from retirement or already retired, you may find immediate annuities best for your financial needs and objectives. These annuities can provide the investor with income soon after the initial investment has been made. If you buy into a variable immediate annuity you can receive larger earnings than you would from conventional annuities if its investments perform well, and are sure to receive a guaranteed minimum if the investments or the market falters.

When it comes to annuities, you have to remember that despite its benefits, it is not a get-rich-quick scheme where you can get a high rate of return for a small investment. An annuity works to solidify your investment portfolio by allowing you to diversify your interests while at the same time, assuring that you generate additional source of income at a time when you may no longer be able to work. Whatever type of annuity you decide to get, just be sure to consult with a reputable insurance company.




About the Author:



No comments: