Article Information

A pension annuity is an annuity product that is sold by an annuity provider or an insurance company to a person when he retires. Pension annuity provides a guaranteed retirement income which usually comes in the form of regular payments for the rest of the policy holder’s life. What it basically does is that it converts an individual’s pension funds into a regular income after retirement. Retirees choose this option because they believe that pension annuity is an essential source of income that provides predictable and consistent income. Annuities are quite simple to understand and help retirees by saving money on a tax deferred basis. These can be paid in smaller amounts regularly or in large amounts less frequently.