Planning for your future starts now! Life after retirement presents many options to start a completely new phase. However, in any case, you would need the funds to support your plans. Whether you simply want a backup of regular income or a lump sum amount to invest in a further plan, all the options are available. The annuity arrangement is a very effective way to set your future perfectly. Essentially, it refers to the system of setting aside a certain sum of money first in a pre-determined accumulation phase, and then receiving it with the accumulated dividends in the payout phase. All major financial providers in the UK provide a variegated array of annuity plans. You would need to choose the perfect one based on your custom requirements.
Understand the basics
Before proceeding with annuities, you need to have a clear idea of the basics. So, what is the deal? There are three fundamental aspects to it.
- The volume of funds you invest and the manner of setting it aside
- The illiquid surrender phase, annuitization phase, or the accumulation phase
- The payout phase where you receive a dividend inclusive payout in a manner you choose
In an online annuities calculator, you can put up the necessary details in required fields and receive applicable quotes according to your unique requirements. This service is freely available online from professional services in UK. In fact, you can also consult with an independent professional for obligation-free suggestions. The experts would also do all the hard work for you in selecting a proper plan that suits perfectly with your personal requirements. You get the benefits of a custom plan to meet your post retirement ambitions. However, you need to be very certain in choosing a trusted financial service.
Customising your plan
Focus on the aforementioned basics to customise. However, first you must be sure about the way you perceive your life after retirement. Find accurate personal answers to a few crucial questions. For example, do you want to spend your retirement in a leisurely manner? Do you want to try all those exciting things that you could not do in a busy life? Are your plans in the line of starting an independent business after you retire? Do you simply want to make sure that you have sufficient money saved aside for urgent medical requirements in an advanced life? Do you fear about out living your savings after retirement? Discuss these critical aspects with a preferred service.
You would need a few primary figures for using the annuities calculator. These include the total amount you can afford to use in the annuity scheme. What is your preference about the illiquid accumulation phase of your money? Do you want to opt for a short term phase or a prolonged one? It can even span an entire decade of illiquid investment! The investment can be done both in lump sum and in installments up to a certain period. Once these data are put, the calculator provides you with quotes outlining how much dividend you would receive. You need to determine further how you want to receive the payout. The two common options are to opt for a lump sum payment or to go for steady monthly payouts for a certain period.