Retirement Annuity
What Does Retirement Annuity Mean?
A retirement annuity is a financial product designed to help individuals prepare for retirement. During the accumulation phase, individuals make payments into the annuity. Once the policyholder reaches a specified age, the annuity disburses funds according to a predetermined schedule.
Many life insurance companies offer retirement annuities as part of their policy benefits.
Insuranceopedia Explains Retirement Annuity
The purpose of a retirement annuity is to provide a steady income during a person’s later years, when they are no longer working.
Retirement annuities can also offer certain tax advantages, which makes them a popular investment option.
Retirement annuities are similar to retirement accounts, and both are often referred to as IRAs, which stand for “individual retirement annuity” and “individual retirement account,” respectively.
