Posted on March 20, 2010.
Finance and Money Management 30-types of personal pension As mentioned in other articles the government represents only about 30% of our retirement income, the pension scheme offers another company 30% and many of us have not . It is up to individuals to invest wisely in the short term and long term to compensate for falling short, if he or she would like to live comfortably in retirement without giving up some pension. Now you've reached your retirement age, there are important investment options for your RRSP or 401k plan. In this article we will discuss the types of annuities.
1. Annuity
An annuity is a financial contract signed between you and the insurance companies that guarantee to make a series of future payments to you in exchange for immediate payment of a lump sum or series of payments before the return of payments . Depending on the type of annuity, the payments can not stop if you die, a payment may be paid to your spouse or a beneficiary as guaranteed term pension.
2. Annuity certain
Certain annuity provides a fixed monthly income until age 90, rather than for your whole life. If you die before the age of 90, your spouse will receive payments until his / her 90th year.The minimum annuity certain is 3 years and the maximum is 40 years.
3. Prescribed Annuity
Prescribing annuity has a privileged tax status. There is no tax on capital income, but the interest is included in the annuitant's income is the level for the duration of the annuity. The tax base is lower in the early years and more years later, because it can not be bought by non-registered money.
4. Deferred Annuity
In a deferred annuity, the product of this plan should be used to purchase an annuity with a "specific" date in the future as it can not begin later than the month of January of the year you reach age 70, although they can be put in place from the age of 60 years.
5. Immediate Annuity
immediate annuity means once you pay a lump sum, you can receive payments immediately.
6. cashable annuity
If retirement is cashable a clause in the contract, the insurance company can help you collect your rent if you lose your health, or if interest rates are much higher than when you bought the annuity.
I hope this information helps. If you need further information or advice insurance, please follow my series of articles on the topic above to my home page at:
http://medicaladvisorjournals.blogspot.com
http://lifeanddisabitityinsuranceunderwriter.blogspot.com/
