If you are looking for ways to create a guaranteed income, a retirement annuity may be an option to consider. Retirement annuities convert the money you invest into periodic payments that start on a specified future date. While there are many different types of annuity for retirement, immediate and deferred annuities are the most common.
If you are of retirement age, you might opt for an immediate annuity so your income could start the following month. If you are 55 and don’t expect to retire until 65, you might chose a deferred annuity that will accumulate interest and produce higher monthly payments when you ultimately begin to take withdrawals.
The best annuities for retirement can provide safety, security, and guarantee you will never outlive your money. To generate the most monthly income, look for the highest current fixed annuity rates. If you have been thinking about investing in an annuity for retirement, you should know some of the pros and cons of such an investment.
Pros of retirement annuities
- Can give you guaranteed income for life to supplement your Social Security income
- Will pay you the same monthly amount for as long as you live
- Can continue to pay benefits to your surviving spouse
- Some of the income you earned is not subject to taxes
Cons of retirement annuities
- Fees can be higher than other types of retirement investments
- Once you sign the contract, you must live with the terms of the annuity
- Your exact rate of return cannot be calculated until you die
Retirement annuities make sense for people who want to know they will always have a guaranteed income. We can further explain retirement annuities and help find the annuity best for you. To get started, just click on the orange button to the side of the screen.