Retirement planning – the ins and outs of an annuity
An annuity is a little known income option for retirees that can provide some certainty in an uncertain world. Here’s how they work: What is an annuity? The concept of an annuity is fairly simple. You provide a lump sum of money and, in return, the annuity provider promises to pay you a series of payments over a set timeframe. In other words, you are swapping your lump sum of money for an income stream. This can assist to fund your retirement and replace the regular pay cheque you once received from work. Fixed term vs lifetime annuities There are two