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Retirement Annuities with a Difference

The retirement is a phase which refers to the time period when the retired individual resorts to the activities that he or she had always desired to do but could not manage to owing to the responsibilities that he or she was burdened with. The nature of investment changes with the enhancing age, as experience overtakes the impulses. The financial requirements also change with time and age. The fund requirements pre-retirement are not similar to those of the post retirement phase. The fund requirement post retirement is focused more on the investments that can generate an additional source of income for the retired individual. Retirement annuities serve the purpose of this income generating investment. The deferred annuity has brought about a variety in the annuity scheme of retirement as well.

The reason the retired individual does not go for the greater income yielding investments like those of the stocks and shares, is that the attitude towards the investment changes. The retired individual would prefer an investment that gives a reasonable income without being too risk oriented. The main priority of the retiree remains to enhance his monetary status without exposing it to any risk. The principal reason for this being so is the preservation of his or her principal. The retired individual will obviously not only want to secure his or her own old age but also that of his or her spouse’s and will therefore want the principal amount to remain safe. The retirement annuities offer them that facility. The deferred annuity allows them a further privilege of deferring the payments as per their requirements.

The retirement annuities are the perfect venue of investment for the retirees to smoothly sail through this period of financial transition. The retirement annuities allow them the opportunity to live the post retirement life according to their terms and conditions and not according to the situations or limitations of any kind. This finance vehicle allows them an additional income to bridge the gap that had been created by the insufficient pension amount.

The concept of immediate annuity is quite a lucrative one for many retired individuals, for the basic reason that it does not have too long a accumulation period. The payment is received within a year of the investment. However on deeper contemplations the option of deferred annuity also comes across as a recommendable option. The reason why deferred annuity is gaining popularity is because of the greater life expectancy of the retired individuals. There are also many who take up an early retirement; therefore under such circumstances the deferred annuities appear to be a more prudent option than that of the immediate counterpart. This helps the retired individuals to insure the rest of their retired life better without the fear of outliving their resources.

Therefore the retirement annuities need to be planned with due care and meticulous calculation. The retired individual not only has to plan his or her financial requirements but also the duration up to which he or she may be requiring it. Depending on those grounds the retired individual must decide whether to opt for the deferred annuity or the immediate annuity. The best as well as the worst both the decisions will reflect on the retired individual himself or herself, therefore he or she must decide accordingly.

Blan Gould is a business consultant who has good information on retirement annuities and deferred annuity. For more information visit

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