There are a variety of reasons one may want to buy a retirement annuity. These products are insurance policies, with the insurable event being your retirement. Upon your retirement, your policy will annuitize, and you will receive monthly payments as per your contract. What can a retirement annuity do for you?
Peace of Mind
With economic times being what they are, everyone is a little on edge about their financial future. An obvious and understandable question is whether or not we have enough saved for our retirement; and if not, how can we fix that? Retirement annuities are designed to supplement your current retirement accounts, ensuring that you have enough to sustain your current lifestyle or just adding a little extra padding to ensure a comfort zone.
Enjoy Your Retirement
Most people have plans for their retirement. There are few among the people of the world who intend to do nothing for their entire retirement. We plan for traveling to places we could not go before, doing things we did not have the time for before, and even spending more time with a family we too often spent too much time apart from. If your traditional retirement accounts are just enough to keep you alive, then a retirement annuity can give you the extra income you will need to enjoy all those wonderful plans you have made as you have worked.
Help Your Family
We all hope it does not happen, but one day, it could. With the economy the way it is these days, your children may end up needing your help whether they want to ask or not. It hurts them to ask, as much as it hurts you (financially) to help. We would all like to help our children as much as we can, and if we have our retirement accounts in order we will always be able to. Hopefully, it will not come to that, but if it does, you are ready. If it does not, then that is more money you will have to enjoy in your retirement.
A retirement annuity can be a vehicle for a lot of different retirement goals you may have. No matter what your needs, your retirement annuity can be used however you choose. There are also benefits that you can gather from annuity. The earnings will continue to grow tax deferred, until the time you begin withdrawing them. At the time, you are likely to be in a lower tax bracket, so you will pay less taxes on the money you have earned. A retirement annuity can be a useful tool for fulfilling your retirement dreams.