Annuities: Blueprint for financial stability & fortification
In an era where medical marvels and a focus on healthy living are pushing the boundaries of human lifespan, the notion of retirement is undergoing a radical transformation. According to Harvard Medical School, “it’s very possible that the first person who will live to 150 has already been born.” Your retirement isn’t a decade-long vacation; it’s potentially a half-century-long second act, therefore ensuring financial security for this extended period becomes imperative.
Enter the world of annuities—a powerful tool designed to navigate this brave new landscape of extended lifetimes and diversified needs. Let’s explore how annuities can serve as a robust pillar in your long-term financial strategy.
Annuities are financial instruments, offered exclusively by life insurance companies, designed to provide individuals with guaranteed regular income for perpetuity. People may choose to receive this income monthly, quarterly, half-yearly or yearly depending on their needs. In essence, annuities serve to address the fundamental financial requirement of retirees: the assurance of a dependable and guaranteed life-long income source.
It is a well-known fact that there exists an inverse relationship between interest rates and the economic development of a nation. As India steadily progresses towards achieving a developed economy status, interest rates will most probably dip, in which case income of individuals from fixed-interest instruments too will fluctuate.
Also Read: Good news! Modi Govt hikes interest rates of these small savings schemes – Check details
Annuities offer a distinctive advantage in the form of interest rate locking, where the interest rate is fixed at the time of purchase. Such a guarantee ensures a stable and
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