Retirement Annuities

The spectrum of Retirement Annuity comprises of both fixed and variable Annuities. As the name suggests the rate of return remains fixed or constant in case of fixed retirement annuity and varies in case of variable retirement annuity. In the case of fixed annuties the rate of return is solely determined by the amount one contributes and the interest rate specified at the time of investment. The starting date of earnings is subjected to the wish of the receiver but with a minimum delay of 1 month. As far as as the maximum delay is concerned it can be delayed by up to 1 year.

The retirement annuity offers many beneficial features, one of them is various ways or sources to purchase retirement annuties. It is possible to purchase a retirement annuity in terms of maturing certificates or funds from a tax-qualifiesd benefit etc. Annuity provides benefit features for both annuity investors and annuity planners. The requirements of different annuity investors may be different, so one should select right insurance company while purchasing a annuity plan or investing in annuity.

One of the type of retirement annuity is single premium retirement annuity which provides various benefits to the investor. People invest in these annuties because of their flexibility advantage. They also provide a very beneficial characteristic that they also work as the source of income for the depebdents of annuitant if he/she dies.

According to current tax law for retirement annuities, a specified portion of payment recieved by the annuitant from non-qualified annuties will not be considered as taxable until the annuitants doesn't get total premium of the annuity. Except that specified portion on payment, the remaining amount of payment will be charged as tax or will be taxable according to the current tax charges in which year it is recieved treated as ordinary income.