Annuity Schemes - Benefits and Investment Plans With Annuity

Retirement is a big challenge that is faced by everyone. We all need to plan for it. Any amount of savings defined or set apart for you for your retirement might not be enough. Hence, you need to look at your retirement in more detail. Annuity schemes are a step towards retirement planning. Annuity offers you a way to stabilize your income, earn stable income on your investments and savings and thus provide you with much desired financial security after retirement and during crucial illness.

Why Annuity?
Annuity is important and should be complementary to other forms of investment for simple reasons stated below:

• Income benefit to be received from your defined social security benefit plan might be limited and would fade away with inflation and changing interest rate scenario.


• Employer's contribution to sponsored retirement plan and PF might fail to meet the needs with changing time.

Benefits with Annuity:
Annuity offers you guarantee of earning specific fixed amount at regular intervals of time. Thus, you have some amount of certainty about the future and an assurance that you're monetary needs will be met post retirement.

Features of Annuity:
Other benefits associated with annuity and retirement planning is that annuity is quite flexible and the amount to be received post retirement can be planned for looking at your long term requirements. You can choose the type of annuity, the annuity term, the survivor benefits and the withdrawal limit.

By choosing a survivor benefit option you can get your heir or your spouse receive the balance annuity income post your death.

Benefits of adopting Annuity Scheme
Annuities let you know the amount that you would earn post your retirement. They thus provide you a check so that you can ensure that you do not over spend as against your income. Life after retirement can be planned in a better manner if you know the exact amount you would receive after retirement.

Other benefits include:

• Deferred tax benefit: The investment made in annuity account stays tax free, till the time the withdrawals are made.


• You can choose amongst various annuity schemes and choose a scheme that can meet your long term planning requirements.


• By the way of nomination of a beneficiary, you can leave financial support for your loved ones even after your death. Your spouse and family can be taken care of as well.


• The amount that can be invested in insurance and annuity is unlimited.

Choosing an annuity Scheme for you?
You can choose either a fixed annuity scheme offering you a fixed payment after retirement, equity linked annuity scheme which invests the deposited sum in equity securities and earns higher returns.