An annuity is a financial product that provides a series of payments made at equal intervals. They are primarily used as a means to provide a steady income, typically for retirees. There are several types of annuities, but they all serve the purpose of managing your money and ensuring long-term financial stability.​​
What are Annuities, and How Can They Help Create My Own Pension?
Education
Annuities are a popular choice for creating a personal pension plan because they provide a reliable income stream that can last for a specific period or for a lifetime.
Here’s how they can help:
Steady Income Stream:
Longevity Risk Management:
Customizable Options:
Tax-Deferred Growth:
Spousal Benefits:
Market Protection:
​Once you purchase an annuity, it provides regular payouts, ensuring you have a predictable income during retirement.
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Annuities can ensure that you do not outlive your savings. Lifetime annuities provide payments for as long as you live, mitigating the risk of exhausting your funds
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You can choose from various types of annuities to suit your financial needs and risk tolerance.
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Earnings in an annuity grow tax-deferred, meaning you don’t pay taxes on the gains until you begin withdrawals, potentially during retirement when you may be in a lower tax bracket.
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Joint annuities can provide continuous income for surviving spouses, ensuring financial protection for both partners.
Fixed and indexed annuities protect your principal from market downturns, offering more certainty compared to direct market investments.