An annuity is a regular income payment made to you until the death of you or a dependant (such as your wife or husband) that is set up from a fund of money that you provide. Annuities are usually set up from a pension fund.
There are significant tax advantages with an annuity, so they are popular vehicles for planning for and caring for elderly during retirement. After you set up the fund, the monthly payment to you depends on several factors including the size of the fund, your age, your health and ultimately your life expectancy.
People tend to set up annuities when it is important for them to have a steady monthly payment coming in for the remainder of their lives and they do not want to have to actively manage their money or suffer unnecessary tax expenses.
There are several different types annuities, and it is important to speak with a qualified adviser to find a plan that meets your needs. After filling out a short form on our site, SimplyFinance will put you in touch with an investment advisor who will discuss the options available to you concerning investing in an annuity. Start planning for your retirement today! The earlier, the better.