Lesson 1 - Exploring Retirement Income Options: Understanding Pension Annuities (#pensions #annuities)
WHAT ARE #PENSIONANNUITIES? #Pensionannuities are a type of financial product that provides a regular income for individuals in retirement. They are typically purchased with a lump sum of money, such as the proceeds from a pension plan or other retirement savings account. An #annuity is a contract between an individual and an insurance company, in which the individual agrees to give the insurance company a lump sum of money in exchange for a guaranteed income stream for a specified period of time, often for the remainder of the individual's life. The amount of the income payments depends on several factors, including the individual's age, gender, health status, and the prevailing interest rates at the time the annuity is purchased. Pension annuities can provide a valuable source of income in retirement, particularly for those who are concerned about outliving their savings or who want the security of a guaranteed income stream. However, they also have some potential d...