1. 0 POINTS
    Dan Hopwood
    Sales, Retirement Planning Store, Inc., illinois
    When you say retirement annuity, I guess you are referring to an annuity that pays an income monthly?  With that being said, the annuity that you are referring to is called an immediate annuity.  Immediate annuities come in many variations of length of income streams.  Typically an annuity to fund retirement would be a life only with survivor benefits.    Basically this annuity will pay a monthly income for as long as a Annuitant is alive and then either 100% or as low as 50%  to a survivor, normally a spouse for the rest of their life.  

    There are many different types of annuities however.  One annuity in particular is an Indexed annuity with an income rider.  This would be an alternative to the immediate annuity.
    Answered on March 6, 2014
  2. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    A million people wanted an income that they couldn’t outlive. They went to an actuary who studied human mortality and determined that for every $10,000 they put into a fund, they could draw out a specified amount (i.e. $300/mo.) and never run out of money. Mortality is fairly predictable and so an insurance company stepped in and announced that they will guarantee these payments. That contract is an annuity.
    Answered on March 31, 2014
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