There is always a lot of controversy over the topic of retirement annuities. Some people feel they are a favorable option for retirement savings while others only seem to have bad things to say about them. Retirement planning should be a vital issue in every person’s life. You want to be sure you can live comfortably and enjoy yourself after you retire and not be a burden to your family.
If you are someone who is presently in the process of trying to make their mind up on retirement annuities and learn more about them, there are a couple of important points to realize.
Although there is a great deal of negativity that surrounds annuities in the world of retirement savings, overall they are an ideal way to save for retirement. For one thing they are tax deductible. That is a term that everyone loves to hear.
When choosing annuities make sure you choose the most flexible plan. There are fixed and variable annuities to pick from. With both of these you get guaranteed rates of interest. If you are someone who is wary of the constantly fluctuating stock market the fixed rate retirement annuities will be best for you. This ensures you stay at your initial rate and this will never change. Of course the problem with the fixed rate is that if the market ever goes down you will not have the option of changing your rate of interest and possibly taking advantage of a better price which is a drawback.
With the variable option you are able to switch as you please. The variable option is tax-deferred as well and has more growth potential than their fixed counterparts. The variable annuities allow periodic payments which can be a desirable feature to have included in your retirement plan. What this means is that you if you happen to outlive your assets you will still continue to receive payments. This is nice to know because it would be pretty unfortunate to live a long wonderful life only to find that your retirement payments have run out and you have nothing to live on.
The variable annuities also offer a death benefit. This way your beneficiary will be able to receive any amount of your asset leftover if you die before you have started receiving payments. This is relieving because you will not have to worry of years of making payments towards your retirement savings being all for nothing.
The issue of annuities for retirement is one of obvious importance. Because it can be so difficult to most people to decide which type of annuities or other retirement savings they want to start, it is wise to seek advice from a financial adviser. Even after doing a bit of research on your own time this will be a wise idea. They can sit and discuss your job and retirement planning options and make sure you decide on the right options for you and your life.