How To Buy An Annuity

Step-by-step guide to buying an annuity Step 1 - the wake-up pack Up to six months before you retire your pension provider will send you a wake-up pack.

How to buy an annuity. Life Annuity with Return of Purchase Price in Parts 4. You can access your pension pot from the age of 55. If you wish you can exchange the whole pot for an annuity but you dont have to.

Life Annuity with Return of Purchase Price on diagnosis of Critical Illness or Death 5. Buying an annuity is a very personal matter. Blanchett points out that the right time to purchase an annuity depends on the individual.

As part of the Know Your Customer Legislation you must complete a Customer Identification and Suitability Worksheet including a copy of your Valid Photo ID. But are annuities really the best way to secure a stress-free retirement. The Internal Revenue Service IRS defines the maximum allowable contributions to pretax 401k and profit sharing plans and both Roth and traditional IRAsAccording to the Insurance Information Institute there are no limits on the amount that you can invest in an annuity.

How to Buy an Annuity Annuities can be purchased from insurance companies banks independent brokers and financial advisors. As long as you have proof of citizenship and are not suspected of Anti Money Laundering AML you are able to purchase an annuity in the United States. You can also use the Fixed Annuity Marketplace to see what guaranteed returns are available to you.

You want a guaranteed income for yourself and family but need to make sure you are asking all the right questions. It takes about 60 seconds to get your quotes which are provided at no cost or obligation. That comes into play if you have both traditional and Roth balances and you choose not to have the money for your annuity purchase.

The financial advisor should ask you a ton of questions when someone wants to buy an annuity. If you decide to buy you can choose to complete forms online over the phone or in person. When you buy an income annuity you enter into a contract with a life insurance company in which the insurer agrees to make fixed monthly income payments in exchange for a lump sum of money.