Plan Your Retirement Income With Single Premium Deferred Annuity

A single premium deferred annuity is one of the most solid and dependable investments you can make. It is a way of sheltering your investment against taxation while it builds towards your retirement, allowing you the possibility of replacing some of the pension income which is now being eroded. Pensions are becoming ever less stable as the years go by, with inflation reducing their spending power, and an increase in the aged population meaning there are fewer funds to go round. It makes sense to take control of the situation and plan your own retirement if you are able to do so.

The tax break is the great advantage offered by the single premium deferred annuity, but it is important not to over concentrate on this. A tax efficient investment is useless unless it can generate enough income for tax to be paid on in the first place. Annuities have the great benefit of being guaranteed, and are a great starting point for your overall retirement plans. Combining them with other instruments can give you an even better chance of having your retirement income needs completely met.

One of the most common ways of achieving this is by the use of a split annuity, combining a standard deferred annuity with an immediate one. The idea behind this is that the immediate annuity provides an ongoing income, while the deferred annuity continues to grow in the background. If the figures can be worked out so that the deferred annuity keeps refreshing the principal over time, the income level can be maintained.

This system can be especially useful in meeting mortgage payments. Although there is unlikely to be any income left over during the time the mortgage is being paid, the payments should continue to be met. Mortgage payments are relatively easy to calculate, and they vary little over time in comparison with other investments. By the time you reach retirement, you could be in a very good situation. If the mortgage payments have been met and the loan paid off, you could own your home outright. You could also have a monthly income from the payments which are longer needed to pay the mortgage.

There is just one hazard you need to watch out for with a single premium deferred annuity, and that is when it comes to passing on your wealth to your heirs. Annuities are treated differently from other investments, and they are harshly treated for inheritance tax. The annuity works best when it is providing an income for your retirement. If your goal is to pass wealth to your children or other heirs, you will be better off looking at life assurance policies which act in a similar way to annuities. For retirement income, though, nothing beats the solidity of a single premium deferred annuity.

 

Annuity Payout Calculator News:

 

Annuity Calculator: EU Rule Sees Further Fall in Annuity Payouts - PensionCalculator.org

PensionCalculator.org
Annuity Calculator: EU Rule Sees Further Fall in Annuity Payouts
PensionCalculator.org
A recent ruling by EU judges that insurers cannot use gender in deciding the amount of payouts has led to annuity rates being further depressed. The debt crisis in the euro zone has also led to annuity prices falling. This is because as many investors .

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Is it Wise to Delay my Annuity? - Annuity News Journal

Annuity News Journal
Is it Wise to Delay my Annuity?
Annuity News Journal
By Henry Steelman on January 26, 2012 at 8:46 am One of the biggest decisions that a person or investor has to make when trying to invest in an annuity is whether to invest in an immediate annuity or in a deferred annuity. The difference between these .

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New York Life Insurance and Annuity Corporation, et al., Notice of Application - Insurance News Net (press release)

New York Life Insurance and Annuity Corporation, et al., Notice of Application
Insurance News Net (press release)
Applicants: New York Life Insurance and Annuity Corporation ("NYLIAC") and NYLIAC Variable Annuity Separate Account--I ("VA I"), NYLIAC Variable Annuity Separate Account--II ("VA II"), NYLIAC Variable Annuity Separate Account--III ("VA III"), .

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Securian's New Annuity Product Well-Positioned for Inflationary Times - MarketWatch (press release)

Securian's New Annuity Product Well-Positioned for Inflationary Times
MarketWatch (press release)
PAUL, Minn., Jan 25, 2012 (BUSINESS WIRE) -- Securian's first annuity product designed for nationwide distribution -- SecureOption Focus -- positions the company for strong sales on the inevitable day when interest rates start rise.

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Retirement income scorecard first quarter 2012: Immediate annuities - CBS News

Retirement income scorecard first quarter 2012: Immediate annuities
CBS News
This post examines immediate annuities, which are one of three ways to generate retirement income from your retirement savings. For background on these methods, you may want to review my recent post, My four favorite ways to generate retirement income.
The Pitfalls Of Variable AnnuitiesForbes

all 2 news articles »
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Eurozone crisis and EU legislation hit UK pension incomes - Annuity Rates

Eurozone crisis and EU legislation hit UK pension incomes
Annuity Rates
All these factors have culminated in lower annuity rates for consumers, which means a smaller retirement income at a time when inflation and prices are high. As Eurozone countries become less attractive to invest in, the UK becomes more attractive and .

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John Hancock Financial Twitter Site Twitter.com/jhboston26 Celebrates 27th . - Stockhouse

John Hancock Financial Twitter Site Twitter.com/jhboston26 Celebrates 27th .
Stockhouse
John Hancock offers a broad range of financial products and services, including life insurance, annuities, fixed products, mutual funds, 401(k) plans, long-term care insurance, college savings, and other forms of business insurance.
John Hancock Annuities Wins 2011 Dalbar Financial Intermediary Service AwardMarketWatch (press release)

all 25 news articles »
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How to fight dwindling annuity rates - Interactive Investor

How to fight dwindling annuity rates
Interactive Investor
By Faith Glasgow | Thu, 26/01/2012 - 10:41 People stopping work now are faced with a perfect storm: pension pots damaged by the past months of stockmarket volatility; gilt yields at a record low level, which have pulled annuity rates down with them; .
Annuity Think Tank Reveals Brand New Personal Pension VideoPR Web (press release)
How the European Union is threatening United Kingdom pensionsThis is Money

all 5 news articles »
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Fed's low interest rates could lower interest in annuities - InvestmentNews

Fed's low interest rates could lower interest in annuities
InvestmentNews
By Darla Mercado Reduced commissions for agents, more tweaking to annuities and lower profitability could be in store for life insurers now that the Federal Reserve has committed to keeping interest rates low until late 2014.

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Variable annuities deliver little advantage for high cost - Chicago Tribune

LifeHealthPro
Variable annuities deliver little advantage for high cost
Chicago Tribune
Many readers have written recently to ask whether they should buy variable annuities. Financial planners who recommend them extol such features as fixed minimum income, the possibility of increased income if the stock market does well, life insurance .
Canada's Proposed Ban on Banks Selling 'Annuity-like' Products Not Expected to .LifeHealthPro
New York Life Reorganization Combines Broker-Dealer With Retirement Income .Insurance News Net (press release)

all 4 news articles »
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