6 Threats Which Can Affect the Annuity Rates You Receive

Retirement planning is essential to ensure you receive the type of income you need or desire and annuities can help.

17:15 24 February 2013

When you are doing your retirement planning there are many options to choose from, so you’ll first want to have a clear idea of what you want your life to be like once you’ve retired. After you’ve decided on that information, you’ll have a better idea of what annuity choice is right for you.

 

It is best to shop around to make sure you get the best annuity options and rates. Here are a few things which can influence annuity rates:

•Each company has different rates so this where the shopping around part comes in handy.

 

•Age. If you wait until you are older to purchase an annuity you tend to receive higher income because the company figures it won’t have to pay out as much.

 

•Gender. Since females live longer than men, on average, females can expect a lower annuity rate for the same exact investment amount.

 

•Health conditions may mean that you actually receive a higher rate with an enhanced life annuity since it may mean your lifespan will be shortened.

 

•Life expectancy. When life expectancies increase, the annuity rates fall to compensate.

 

Obviously, when you are doing your retirement planning, the choice of what type of annuity you want will also affect the annuity rate. There is a lot involved, and while it may benefit you to wait as long as possible to get an annuity, it is still a good idea to get some quotes before you are actually considering retirement.

 

If you get multiple quotes while doing retirement planning a little early, you’ll have at least a general idea of what to prepare for and what kind of investment to make for your future needs.