For many consumers, choosing an annuity as an investment and retirement strategy can be a sound and wise decision. It is set up to allow for a guaranteed level of income for the entire lifetime of the insured. This Annuity Value becomes even more invaluable to the consumer. It may even become the only income that they have to rely on to sustain their lifestyle. There are several options available for investing in annuities and consumers are offered the opportunity to research different annuities and their enhancements, all while making sure that they secure a steady stream of income during retirement.
For most consumers, annuities are purchased with the money they have already saved up in their pension fund. It can also be purchased through savings or other forms of investment. Once purchased, the annuity will pay out a designated amount of income for the remainder of the insured’s lifetime. This is typically paid out on a monthly basis. Once the annuity is purchased, it cannot be changed.
There are a series of factors that will impact the amount of income received during retirement. These include such things as the lifestyle of the consumer, any life-threatening conditions that are present, and whether obesity, high cholesterol or other health factors are present.
As consumers continue to age, their annuities become increasingly more important. This is due in large part because the income established by an annuity is guaranteed and lasts the entire lifetime of the consumer. This cannot be said of many other investments or income sources. This means that as old age approaches, consumers may find themselves completely reliant upon the income established by the annuity. Once all other income flows and investments are gone, the annuity value is guaranteed to still be in place.
For many, the guarantee of the annuity value is the biggest selling point in investing in an annuity for retirement. Annuities present a form of safety for most consumers, as they worry about how to sustain their lifestyle long after they have stopped working. For most, the most guaranteed form of income is an annuity. As retirement is a time that should be characterized as worry free, annuities can be a safe bet when determining income streams that will last the longest period of time. They can remove much of the worry and stress surrounding finances during a period of time, retirement years, which should be carefree.