10:11 PM
Sthita Prangya Mohanty
Among the pillars supporting the post retirement life of a person financially is fixed annuity. It is an investment for future. Absolutely different from equity release that too is a retirement plan of financial nature, this kind of investment is a contract between an insurance company and an annuitant. The contract signed by the insurance company ensures to support the retirement of the annuitant with a fixed income and that is for a definite time period. The figure of the fixed income varies with the volume of the investment in fixed annuities.
This kind of investment for retirement is considerable for the benefits of fixed income. That it promises a fixed amount is an appealing facet of the investment. It is more appealing particularly when the market is volatile and experiences a dip. A fixed annuity investment makes one’s retirement stable from financial perspective while there is stability in the market. Equity-indexed annuity is one of the fixed annuity types. Though it pays minimal interest rate when the market is in doldrums, it protects the principal investment.
Another prospective benefit of investment in fixed annuities is a flow of income for the span of an annuitant’s life. It is a powerful means of financial security for the retired. The lifespan of a retired individual is not supposed to outrun the period of the fixed income. Like any other financial investment, this financial vehicle too has both sides – positive and negative. It is true about fixed annuity investment. It is a source of recurring income in a definite figure and at a definite time. If the annuitant withdraws the money before the definite time, it is likely to turn the investment illiquid.
This kind of investment for retirement is considerable for the benefits of fixed income. That it promises a fixed amount is an appealing facet of the investment. It is more appealing particularly when the market is volatile and experiences a dip. A fixed annuity investment makes one’s retirement stable from financial perspective while there is stability in the market. Equity-indexed annuity is one of the fixed annuity types. Though it pays minimal interest rate when the market is in doldrums, it protects the principal investment.
Another prospective benefit of investment in fixed annuities is a flow of income for the span of an annuitant’s life. It is a powerful means of financial security for the retired. The lifespan of a retired individual is not supposed to outrun the period of the fixed income. Like any other financial investment, this financial vehicle too has both sides – positive and negative. It is true about fixed annuity investment. It is a source of recurring income in a definite figure and at a definite time. If the annuitant withdraws the money before the definite time, it is likely to turn the investment illiquid.
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