Which annuity option is best

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Do you want to advance reciept of your annuity? Date from which you want to recieve Annuity. For Yearly payout mode the advance annuity date can be set between 3 to 12 months from today For Half Yearly payout mode the advance annuity date can be set between 3 to 6 months from today. Annuity Payout Amount. Annuity frequency. Annuity Option. Purchase Price.

Email this to yourself. Email address:. The plan that you choose to invest in later pays you a regular guaranteed payout for life. An immediate annuity plan is the best buy for someone who has recently retired and has a corpus ready to make a one-time investment and start receiving a monthly income right away.

Under an immediate annuity plan, if you invest INR 50 lakh for buying a plan that covers both you and your wife joint life cover , from the very next month of investing your money, you start receiving a pension of INR 25, You will continue to receive this pension until you are alive.

However, on your death, your wife will start receiving the same amount until she is alive. Post the death of both—you and your wife—your financial dependents will receive the entire invested amount i. INR 50 lakh as a lump sum. These features are only available in joint life covers with the return of purchase price variant of immediate annuity plans. Joint life annuity plan with return of purchase price is the most bought annuity plan under the pension products category.

Under this plan, the policyholder receives a fixed monthly income for life upon the amount invested. On the death of the policyholder, the spouse starts receiving the monthly income on behalf of the policyholder.

The pension further remains active until the death of the spouse. On the demise of both policyholder and spouse, the financial dependents of the policyholder receive the entire invested amount as a lump sum without any deduction.

However, while buying this plan, it is important to note that the pension received under joint-life annuity is lower than other variants as the pension is divided amongst two individuals. These plans are good for people with limited monthly expenses and for those who wish to leave significant wealth for their children. Another popular variant of immediate annuity plans is life annuity with return of purchase price.

This plan works in a similar way as a joint life annuity plan works but the only difference is that under this variant only the policyholder receives the pension for life. On the death of the policyholder, the financial dependents—spouse and kids—receive the purchase price, i.

The dependents can use this amount to pay for daily expenses and pay for other financial expenses like retirement planning of the spouse. Moreover, some plans even give the option of receiving the purchase price in easy monthly instalments.

Under this variant, the pension received every month is significantly higher than joint life cover. Before you make an investment in an annuity plan, it is important to note that the pension received on annuity plans is not tax-free.

You might be able to combine some of these options. For example, a joint income that increases in line with inflation. Your choices affect how much income you can get. Where you expect to live when you retire and your health at the time you set the annuity up can also affect how much income you get.

As you near your retirement age, your pension provider will send you information about the value of your pension pot and the options that are available to you to take money from your pension. Some pension providers can offer you an income directly. You might want to consider talking to a regulated financial adviser to help you choose the most suitable annuity.

According to a Which? So it has to be the right decision for you. And it could mean you miss out on thousands of pounds over your lifetime. When searching for annuities, to help you see how much income you could get from different options — use our annuity comparison tool.

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