subject: Using A Retirement Annuity To Ensure Your Comfort [print this page] The retirement annuity is a product of the economic today climate. The unfortunate result the economy today is that record numbers of our retirees are coming out of retirement and going back to work. It is unfortunate that those who have spent decades working and earned their golden years of relaxation are being forced to return to the workforce. All too often, those seniors have to take jobs below their experience due to corporate desire to hire younger people. Not only are they being forced to work again, they are working for much less than they are worth.
There are many different culprits leading to this problem, but they are all based in the fact that retirement plans are not living up to their expectations. Among the reasons for these are the fact that we are living much longer than we were when traditional retirement accounts came around, bad investments, and children needing help from their parents later in adulthood than usual. A lot of the bad investments were caused, at least in part, by the bad economy. Problems with the finances of our children also often fall back on the economy. We are taking pay cuts to help keep our companies going (and keep our jobs in the process), other companies are folding in record numbers.
So, what tools can we use to ensure our retirement throughout our retirement? One of them is called a retirement annuity, and it is essentially an insurance policy for retirement. It works just like typical insurance where you pay your premiums, either in full or in monthly installments. The company will either invest that money, or place it in a lower risk interest bearing account. The investment annuities have the possibility to return much higher vs. your investment, but due to the risk involved in investments there is a chance your annuity could lose money over the life of the policy. The lower risk interest bearing accounts will guarantee that you will never lose money, but have a much lower return on investment. It is up to you to weigh the pros and cons of each, and decide which is best for you and your needs.
You can use the money from your retirement annuity just like any other money you earn. The taxes on the earnings are deferred, and you will probably be in a much lower tax bracket by the time you begin withdrawing from the policy, so you will save money there. Retirement annuities can be used to fund your dreams, start a new hobby, help your family or simply spend more time with them. There are many ways you can use your retirement annuity to ensure your comfort in your golden years, and you have many choices.
by: Katherine Smith
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