How Do Income Annuities Work?
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63333 POINTSview profilePeggy MaceMost of the U.S.Income annuities are usually purchased with a lump sum of money around retirement age. They are annuitized immediately, which means that the retired annuity holders start receiving monthly payments to supplement whatever other income they started receiving at retirement (Social Security, pensions, etc). The payments from an annuity can be fixed or they can be variable, depending on the type of annuity purchased.Answered on September 14, 2013flag this answer
61667 POINTSview profileSteve SavantSyndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale ArizonaTax deferred annuities can be annuitized for life time income you can't outlive. Single premium immediate annuities can generate life time benefits for the annuitant of the policy as well. But you can structure these to pay outs for time certain periods to integrate your income needs with your qualified retirement plan and Social Security payments.Answered on September 14, 2013flag this answer
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