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A few advantages of taking up a retirement annuity account

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by: juliannenick
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Date: Mon, 24 Jan 2011 Time: 1:57 AM

As the economy is not as stable as it once was, it can be difficult to decide how to use your capital. This is especially true as people are afraid that if they bite the bullet and invest they could make very little in the long run.

Nevertheless, a retirement annuity is a worthwhile alternative to entering the stock market or getting involved in a business investment. Actually, a retirement annuity could offer huge benefits to people mulling over an investment strategy.

So for some of the benefits of a retirement annuity; read through the points below, written using information on

If you have health risks or certain lifestyle choices have reduced your life expectancy then you can take out enhanced or impaired life annuity. This type of annuity is appropriate if lifestyle factors, such as smoking or drinking, makes it possible that your life cycle will decrease compared to the average person. Other conditions that may make you eligible for this type of policy include obesity, angina and other health problems. Therefore, if you worry that you may not reach the age of 75 years old then you could well find it reassuring to know you can claim some of the annuity.

An annuity is available with a variety of different options, making then the perfect choice for a diverse range of personal circumstances. Once example would be that you can choose between a single-life or joint-life annuity. A single-life annuity supplies you with an income for the rest of your life and ceases on your death; however, a joint-life annuity will continue paying money to your spouse after your death. There is even a choice available on how much is paid out; as you might want half or even two thirds of the original income to be paid to your spouse. You can even get inflation proof annuity.

One of the main advantages of a retirement annuity is that it allows you to have the consistent security of a fixed income, which you will be given in place of your usual pension This gives you the peace of mind that comes with knowing exactly how much money you will have at your disposal; you will then be in a much better situation to budget. Due to this, having an annuity is like having an annual fixed wage; which means that you will have the security and safety that you are used to.

A policy could well save you money as different suppliers can offer you some great deals at good rates. If this takes your fancy then it is good to do some research for your annuity and decide on what offers and perks are suited to you. Firstly, you may discuss with your pension advisor, look at the options you may have analyse the market. In general for your research you could decide to phone various firms or browse a website to list the latest rates and offers. For instance, a retirement annuity listed on could be the ideal place to look.

If you choose to take out an annuity then even if you die before you reach the appropriate age your family can still benefit from annuity protection. If you go with this option, a spouse or partner could be entitled to a lump sum upon your death. Although, this would be subject to a tax charge; it does mean that your money will not be lost and that your family will receive some form of financial support. This feature means that an annuity can help your family to afford your funeral and take a lot of unnecessary stress out of the situation.

The things mentioned above should give you a solid understanding of the advantages of setting up a retirement annuity and should get you thinking about making a superb long term decision.

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Getting the best retirement annuity rate is vital as once the Annuity has been bought it cannot be changed even if Annuity rates rise in the future.

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