Many people are turning to retirement annuities as opposed to pension funds. Pension funds offer extremely low interest rates and in many cases do not provide a steady income to retirees.
Annuities are a long term investment and one of the most secured policies that will ensure to provide you a guaranteed income for the total years you are retired. Your spouse will continue to receive monthly payments from the annuity should you die first. These payments will however be a bit lower than the amount you received.
Another advantage of a retirement annuity is that this policy is safe from the risk of market fluctuations. Even if stock markets crash or there are a change in interest rates, your annuity will be safe. Your retirement annuity is also tax-free.
When choosing a retirement annuity, ensure that your agent draws up a contract stipulating your specified annuity rate that they have fixed for your policy.
