As days are progressing, retirement plans are turning better and better. However, it’s also true that retirees are turning their faces from pensions and proceeding towards grabbing better options. Most of the existing pension policies are available at extreme low interest rates that are in fact emerging as disasters in fetching steady income to retirees. Therefore, most of them today are preferring long term investment schemes like annuities. It has certainly proved to be one of the best cash fetching tools and has proved miracles for a post-retired life. So, if you are one of them seeking out ways to improve your retired life, go for retirement annuity. A retirement annuity helps to convert the lump sum amount of your personal retirement plan into fixed monthly payments on a regular basis. You can avail a retirement annuity policy as part of a company’s retirement plan. A retiree can also purchase retirement annuities based on the retirement funds obtained from a life insurance company. Now, this outstanding retirement policy brings along a good number of benefits. A retirement annuity is one of the most secured policies that ensure one to provide a guaranteed income for the rest of his life. Well, its human psychology that a fixed and guaranteed income cuts down the stress and anxiety of retirees and gifts instead a complete peace of mind. A retirement period varies from person to person and yours might be a long one. So, it’s always advisable to go for retirement annuities that can act as a strong source for providing you regular monthly payment and that too for the rest of your life. There are retirement annuity policies designed for lifetime. This means that you will enjoy regular monthly payments for your entire lifetime. One of the greatest advantages of lifetime annuity is that it passes on to the spouse if the annuitant dies first. The amount that is fixed at the commencement of the retirement annuity will be received by the spouse. However, the annuitant with survivor benefits will receive low monthly payments than one received from a single life expectancy policy. With retirement annuities, you can never be subject to any sort of market fluctuation risk. Any alteration in the interest rates or a stock market downfall might compel the retiree to either live on a low source of income or exhaust the principle. In short, your retirement annuity payments will not undergo any change even if there is any pandemonium prevailing in the investment market. Another advantage of a retirement annuity is that it’s absolutely tax-free. However, there are certain terms and conditions which you must know and therefore it’s advisable to consult your tax consultant. The most important thing before choosing any annuity policy is annuity rate. Whatever annuity policy you choose, make sure you get its specified annuity rate and get going accordingly. When your agent or your concerned insurance company draws a contract, you must ensure the validity of the annuity rate that they have fixed up for your policy. For more details on annuities, go online and browse the sites.
Check out the author’s other blogs: bay area jobs and nursing jobs san francisco. Smith Sparrow is a business consultant who has good information on retirement annuity and the annuity rate. For more information visit http://www.immediateannuities.com/.