So, you are looking for options to plan your sunset years. Well planned retirement with a regular and guaranteed income will let you live your retirement life the way you want it to be. Certainly, investing hard-earned money to meet retirement needs is a big deal. A suitable annuity product may be the answer. These products are mainly crafted keeping in mind about the long-term retirement requirements.
Annuity plans can be smart retirement investment option for many people. When you opt for this policy, you are securing the revenue stream for the rest of your life, no matter how long you live. Furthermore, the longer a person lives, the more he or she gets. It is known as a “mortality credit” as the person outlives other people who purchased the annuity. Thus, the income gain can be several times higher than any other secure investment option available. These plans are gaining high prominence due to its manifold benefits.
How does it work?
An annuity policy is a contract between a person and an insurance company. A person invests in the annuity, and in return, payments are made to that person on a future date or series of dates. The income from an annuity can be availed in the form of the lump-sum amount or monthly or annual payment.
Why is it smart Retirement planning?
Annuity plans are often referred to as a smart retirement planning tool. This is because these plans facilitate turning a lump sum of money into a steady revenue stream for rest of your life or a set number of years.
- It offers you a steady income for the rest of your life.
- Flexibility to select an annual/ monthly payout mode.
- Some companies provide annuity card to facilitate convenience in receiving the annuity amount.
Retirement advantages of annuities
Provision of steady Income Post Retirement –
They provide smart retirement planning options with a steady flow of income after retirement. The plan helps a person to cover his/her living expenses post retirement by providing a steady stream of income.
Funds to meet major expenses through life:
Some plans offer lump sum payment option which can prove to be helpful in case of major expense needs. Before retirement, a person may face several major expenses to take care of needs like child education, purchasing a house, etc.
Tax Benefits – Investing in an annuity plan comes with a set of tax benefits which can be availed. Investing in annuity early can help save significantly on tax payments. Provisions of tax exemption under Section 80C of the Income Tax Act can be availed. Check policy details to find out and understand the ways in which you may avail tax benefits.
Insurance Protection – In addition to providing income after retirement, annuity offer insurance cover. This is particularly beneficial in providing protection in case of any uncertainties of a death.
Invest time in researching all available annuity options. Start planning now and secure your retirement smartly with annuity plans now.