Retirement is a subject that everyone is concerned about. It often evokes mixed feelings in people. On the bright side, we are looking forward to the freedom to do what we love or to simply just relax. On the other hand, we are worried if we are able to sustain our lifestyle without income from work. It is to address this worry that annuity products came about.

What is an Annuity?

Annuities can be a complex subject that encompasses cashflows, rate of returns and actuarial science. But the objective is simple.

• It is basically to use the time while you are working to invest into the annuity product. This is the accumulation phase.
• Then when you retire, you can start to receive a regular stream of income. This is the distribution phase.
• How long you receive this income can range from a fixed number of years or to the end of life.

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