You Can Rely On Fixed Annuities for an Independent Life after Retirement
During your service tenure, you might get irritated because of your monotonous lifestyle. At that stage, you might think how perfect it would be to get retired and rest for the whole life. However, when you really retire, you come to know the pros and cons of that life. Old age welcomes several kinds of problems, which include financial worries as well due to your retirement. Retirement annuity schemes have been designed to help the retirees lead a convenient post-retirement life. These annuity schemes are available in different forms, one of which are fixed annuities that are considered as the most reliable retirement schemes.
The retirees are not really fond of materialistic things or luxuries. They require most of their income to bear the medical expenses and pay those who take care of them. Like other types of retirement annuity options, the fixed annuity is also offered by the insurance companies. The annuitants are required to sign an agreement with the agents. But the most important thing is to go through the pros and cons of the deals and then decide the type of annuity scheme to be availed. Fixed annuities have been found to be one of the most dependable schemes that guarantee regular flow of income to the retirees.
Fixed annuities are like CD or certificate of deposit that is insured by the companies. This is because both them offer the income at guaranteed rate of interest. These types of annuities are also sub-divided into two categories that include immediate or deferred. Immediate fixed annuities are received by the individuals as soon as they enroll for the deals, whereas in case of the deferred annuities, the annuitants have a provision to postpone the payment and of their interest on the amount till they start withdrawing the amount from the lender. Based on their requirement, however, the senior citizens should make their selection.
The best thing about the fixed annuities is that they are not influenced by the market rates. Even if the rates fluctuate, the retirees do not have to worry as they will be getting the same amount as decided earlier. The fluctuations, in short, do not pose any impact on the regular stream of income of the old individuals. Besides fixed type of retirement annuity, there are variable annuities that can also be opted for. But this type of plan is subject to rate fluctuations based on the changes in the market rates.
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