Friday 10/10/2008

Learning Center > Annuity Guide > Part 2 - Do I Need to Purchase an Annuity?

Yes, but do I need to purchase an Annuity?

Even if you have been saving money for life after retirement, it may not be enough. With annuities, you are able to stabilize your savings in such a way that it converts into financial security.

Let's face the facts:

• Your Social Security may not be enough to take care of your money needs.
• Contributions made by employer sponsored retirement plans may be very limited.
• You want to have the benefit of knowing that a certain amount of income will come to you every month.
• You want to be relieved knowing that your monetary needs will be looked after for as long as you live.

Annuities offer much flexibility so that you can decide the nature and scope of investment that you want to make, in lieu of your long term requirements.

Right from the type of annuity you go for to the kind of returns you want - you have the choice! You do not pay any tax until the time you start withdrawing your annuity money. Not only that, if you die before the annuity income starts coming to you, the money is paid to your heir inclusive of interest.