If you don’t have a pension from your company when you retire and are looking for a steady stream of income, you may purchase an immediate annuity. This insurance plan is usually created with a lump sum payment and is designed to pay you a guaranteed amount for a set period. For retirees who feel they could use additional funds to cover their ongoing expenses or are concerned about outliving their savings, an immediate annuity could be an option. However, the amount you receive will depend on various factors and there are potential downsides to consider.
Before signing any contracts for an immediate annuity, read the following information to get an idea of how they work and what to expect.
The post The Pros and Cons of Immediate Annuities originally appeared at U.S. News & World Report.