Many people choose the peace of mind that an annuity offers because it gives them set monthly payments in return for their savings. Of course, you want to receive the most income you possibly can for those savings. Here are some things that can have an affect on your income:
1. Your Age: The older you are, the more money you get. That's because you are not expected to live as long.
2. Your Health: If you have health problems, you are less likely to live as long as a healthy person so you will get a higher income.
3. Your Gender: Women get less money than men of the same age because they are likely to live longer.
4. Type of Annuity: You get the highest income with a basic annuity that covers only you. Any special options you add will lower your income. That's because these options increase the costs to the insurance company. Example: You'll get less if you want to protect your income from rising prices.
5. Interest Rates: If interest rates are high when you buy your annuity, you'll get bigger payments. Some people wait to buy an annuity until they can get more for their money.
6. How Much You Have Saved: The more money you put into your annuity, the more you get back as income.
7. How Long You Want the Annuity to Last: With some annuities, you only get monthly payments until your death. With others, payments may continue to your spouse, your dependent children, or your estate after you die. The longer you want payments to carry on after your death, the less you'll get each month while you're alive.
Remember, there are ways to make your annuity do more for you. Contact us to learn more!