In simple terms an annuity is a pension like insurance product; it pays you a set amount of money for the rest of your life. This set amount of money is also known as an ‘income’. The annuity rate you are offered takes into account your health and also your relationship status and if you are asking for the ‘income’ to cover yourself and your partner or if you are getting separate annuity plans each.
The idea of an annuity is that it provides you with the funds you require to take care of yourself during your retirement.
If you are serious about the management of your cash flow then an annuity is the best option for you but the most important thing to do is to shop around to find the best deal but research into annuity rates before shopping around. Make an informed and educated decision on the best rate for you and read the small print to see what you are getting for your money.
It is very important not to go for the first annuity deal you come across unless you have full looked into other options. A lot of money can be lost if you do not shop around.
With an annuity you will have money coming in to you, monthly, throughout your retirement – no matter what!