The use of immediate annuities for retirement income is easy to understand and well-supported with extensive research.  This is where retirees  go for the highest level of guaranteed income available.

How To Use Immediate Annuities For Retirement Income

In exchange for a lump sum premium you get a guaranteed paycheck for life.  You can look but won’t find a better deal anywhere.  That doesn’t mean immediate annuities come without drawbacks because they do.  Like any other product, the individual situation must call for it- be sure to review the Pros and Cons of Immediate Annuities page

Drawbacks using immediate annuities for retirement income:

Many people are concerned about the fact that payments stop upon death of the contract owner and in some instances that means the insurance company keeps a portion of the initial premium.  If that’s the case, immediate annuity contracts come with additional contract components that guarantee certain payments will be made to heirs.  That will ensure the company at least returns the original amount invested and enough options exist to accommodate the specific desires of each individual planning situation.

Another major concern with immediate annuities for retirement income is that inflation will erode the spending power of fixed payments over time.  As such, most companies offer inflation adjusted payments so income can steadily increase throughout retirement.  As with other benefits, inflation adjustments will cause a lower initial payment. If you are planning on using an immediate annuity for retirement income, the free Annuity Report from Annuity Straight Talk is a great start- just enter your email to the right.

We offer a free Immediate Annuity Report that describes how to use immediate annuities for retirement income in detail and contains a simple calculation table that will give you and idea of where income payments will start.