![]() A single life annuity may also be a good choice for a retiree in excellent health who expects to have a long retirement. ![]() Single life annuities make the most sense for someone who's single with no underage kids, or whose family has ample income from other sources. A pension annuity, when combined with your Social Security benefits, may be enough income to guarantee that you'll always have enough to get by, no matter what. Annuities provide a fixed, guaranteed source of income for at least your lifetime and possibly beyond, which can be a lifesaver if something bad happens to the investments in your retirement savings accounts. Choosing the right pension payoutįor most retirees, an annuity of some type is a better choice than a lump-sum payout. Because the number of payments your beneficiary will receive are limited under this payout option, you'll typically end up with a monthly payment that's smaller than the single life option but larger than the joint and survivor one. The payout period options for your beneficiary will typically range from five to 20 years. While the joint and survivor payout option keeps the payments coming through both yours and your beneficiary's lives, the period-certain option continues to pay until your death plus a certain number of years afterward. It's best to look over all the results produced by the various options and choose the one that will maximize your lifetime payment while still ensuring that your family will have enough income from your survivor benefits to get by without you. ![]() Of course, the higher the percentage you select, the smaller your base monthly payment will be. Most joint and survivor annuities allow you to choose what percentage of your lifetime payments your beneficiary will receive options commonly range from 50% to 100%. This annuity pays you as long as you live, and then continues to make payments to your chosen beneficiary (typically a spouse) throughout their lifetime as well. Joint and survivor annuityĪ joint and survivor annuity gives you a way to protect your family after you're gone. That could leave your family in dire financial straits if they don't have other sources of income. It generally provides the largest monthly payments of all the annuity options, but as soon as you die, the payments stop coming - even if you die immediately after signing up for the annuity. Most pensions will pay you with some form of fixed annuity, meaning that whichever payout option you choose, the payments you receive will be exactly the same each month.Ī single life annuity is the simplest type of pension annuity. An annuity is a product that pays you over time, though different annuities set their payments in different ways. If you're not taking a lump-sum payout, then you'll be getting some form of annuity instead.
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