Immediate annuities, sometimes referred to as personal pensions, are bought for a life time. They are the fixed income type.
Immediate annuities provide a set income. Payments can sometimes be adjusted annually and some companies do allow minor adjustments, according to an index, or other variables. Various payout options may be available, including income for a spouse.
Payments are taxed using a formula where each payment consists of earnings and the rest, a non-taxable return of capital.
The problem with a fixed annuity is always the specter of inflation. There is little you can do to thwart the increasing loss of purchasing power of the funds you receive each year.
I think that immediate annuities is the better option now, because, you don't have the specter of inflation.
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