There are certain things you need to keep in mind when planning for retirement. How do you want to live? Do you want an active lifestyle of travel or do you picture a quieter scene? Where are you going to live? And the most important question – how will you pay for it all? The experts agree that you need to save as much money as you can, as early as possible. You can’t simply rely on a company pension or Social Security income. However, even if you have waited to save, you have options – you can start an individual retirement account (IRA) at any time. One other option that is gaining popularity is the retirement annuity, where you can use a portion of your savings to ensure income for the rest of your life.

A retirement annuity, more commonly known as an immediate annuity, is a contract between you and an insurance company. By making a deposit with a single sum of money, called premium or principal, you agree to turn over control of that money to the issuing insurance company. In return, they apply a competitive interest rate and guarantee income that you cannot outlive. Taxes are paid only on a certain percentage of your monthly payments, never on the whole annuity at once. The issuing insurance company calculates, depending on your deposit amount and life expectancy, the monthly amount that you will receive. This amount is normally the same until you die, unless you elect a Cost of Living Adjustment (COLA) option.

A retirement annuity can make it easier to plan for future retirement activities or to pay increased healthcare costs. You can even use an immediate retirement annuity as a supplement to pension income or Social Security. The peace of mind offered by a monthly paycheck, even after retirement, is priceless. More and more, immediate retirement annuities are being purchased by retirees and baby boomers close to retiring as a way to secure their income. Common funding sources include underperforming investments, such as funds languishing in a low-interest savings account, portions of 401ks, IRAs, or even lump sum inheritances.

Is there room for an immediate income annuity in your retirement plan? Call the AnnuityForLife.com Specialists at 1-888-261-6237 to learn more about the benefits of funding a retirement annuity.