Tuesday 10/07/2008

Learning Center > Annuity Guide > Part 1 What is an annuity?

All this sounds good but what is an annuity?

An Annuity is an agreement between Insurance Company and an individual made to manage savings and take care of investments. It is a tool that mobilizes your pension savings in such a way that you have enough income coming to you once you retire. This way, by having an annuity, you make sure that you not only save for your retirement but manage those savings well too, so that you have enough income to fall back on all through your old age!

There are many flexible options available today for individuals who are considering taking up an annuity for income mobilization. You can have your annuity income coming to you for a certain period of time or you can decide to get a fixed annuity payment every month, regularly for as long as you live. This can prove to be a very wise decision in the long run as very few people retire from a Company that provides a pension plan that guarantees a fixed income throughout their retired lives.

The Government is making constant efforts to provide more flexibility and choices to people approaching retirement so that they can plan well and take care of their future investments. Annuities can be a wise choice for most consumers and one that offers long term financial security.