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Nairaland Forum / Nairaland / General / Investment / Lets Talk Annuity (3932 Views)
Annuity Versus Programmed Withdrawal / Annuity Good Plan For Retirees / Annuity Plan (2) (3) (4)
Lets Talk Annuity by femialade(m): 8:50am On Feb 16, 2015 |
What is Annuity? A Life Annuity is a series of payment made to a person (called an Annuitant) for the rest of his life upon payment of the purchase price which is usually paid once. Regular Income is paid to an Annuitant no matter how long he lives Annuity purchased with Retirement Savings Account is payable firstly for ten (10) years and thereafter till the annuitant dies. WHO SHOULD TAKE UP AN ANNUITY PLAN? Every retiree/person who is yet to collect the proceed of his Retirement Savings Account (RSA) or who has a bulk sum of money either from gratuity or otherwise. Every retiree/person who desires to have a steady stream of income for the rest of his life. ANNUITY OPTIONS Level Income: Income remains the same throughout the payment period. Guaranteed Period: Lump sum is paid to the estate of the annuitant where he dies within the guaranteed period. Spouse Annuity: A proportion of income (50% or 75%) will be paid to spouse for life upon annuitant’s death after payments begin. Increasing Annuity: Income increases annually by a guaranteed % (e.g. 5% or 10%). ADVANTAGES OF ANNUITY: WHY FEDERAL GOVERNMENT STRONGLY RECOMMENDS ANNUITY TO RETIREES Security: Income is secure and not subject to market fluctuation. Tax Deductibility: Premium paid and income is currently tax exempt. Flexibility: Can be arranged to combine several options (e.g. increasing, spouse etc.) Risk Transfer Mechanism: Risks associated with managing future income is transferred to the insurer. Longevity Risk: There is no fear of lack of income no matter how long the Annuitant lives. |
Re: Lets Talk Annuity by UrennaNkoli(f): 9:45am On Feb 16, 2015 |
Good |
Re: Lets Talk Annuity by femialade(m): 10:08am On Feb 16, 2015 |
If there is anything about Annuity you don't understand, you can share it here and let's discuss. |
Re: Lets Talk Annuity by femialade(m): 4:56pm On Feb 23, 2015 |
Personal (Immediate) Annuity Plan product is designed to help with the cost of retirement by providing a guaranteed income for the rest of your life. |
Re: Lets Talk Annuity by femialade(m): 11:44am On Mar 13, 2015 |
femialade: |
Re: Lets Talk Annuity by femialade(m): 10:43am On Mar 28, 2015 |
femialade: |
Re: Lets Talk Annuity by moshoodn(m): 9:53pm On Apr 05, 2015 |
Only for retirees? |
Re: Lets Talk Annuity by femialade(m): 8:22am On Apr 06, 2015 |
moshoodn:Yes its for retirees alone. |
Re: Lets Talk Annuity by femialade(m): 8:39am On Apr 23, 2015 |
Annuity pays for life. |
Re: Lets Talk Annuity by femialade(m): 12:16am On May 22, 2015 |
Save yourself from PFA trouble after retirement. Change to Annuity today and be free from the fear of running out of pention payment. |
Re: Lets Talk Annuity by femialade(m): 7:57am On Jan 08, 2016 |
femialade: |
Re: Lets Talk Annuity by femialade(m): 8:06am On Jan 08, 2016 |
femialade: |
Re: Lets Talk Annuity by Ikazuagbe(m): 9:34am On Jan 08, 2016 |
Is there any Annuity plan/product for a young working class person? One doesn't need to wait after retirement before embarking on these! Kindly educate the house as par profitable/lucrative Annuity plan/product for the young working class. If there is,how can one go about it? Regards! 1 Like |
Re: Lets Talk Annuity by femialade(m): 12:37am On Jan 09, 2016 |
Ikazuagbe: DEFERRED ANNUITY PLAN (DAP) A Policyholder contributes premium(s) that would be used to purchase life annuity, starting after a deferred period determined by the policy holder. This plan is aimed at saving towards retirement and ensuring a regular source of income after retirement, especially suited for self-employed persons or persons who want to augment the income from their company sponsored Retirement Savings Account(RSA) ko How it Works: During the deferred period, it operates as a regular savings product with interest accrued on a daily basis. The credited rate shall be the Leadway Interest Rate + 1.5% (The Leadway rate is annually reviewable and is benchmarked to be 2% higher than the average savings rate of Nigerian Commercial Banks) The account balance will thus be contributions received less cost of risk covers plus interest earned on savings. The policy term (deferred period) chosen by the policyholder should reflect his expected retirement age, at which time the annuity will commence. At the end of deferred period- the product automatically converts to an Annuity with purchase value equivalent to accumulated value of contributions. The annuity rates will be based on the prevailing Annuity rates at maturity. As an illustration, based on current rates, a purchase value of N3, 000, 000 can buy N29, 094 monthly, payable for life with zero year guarantee and N27, 473 monthly, payable for life with a 10 year guarantee for a life aged 60 at maturity. |
Re: Lets Talk Annuity by femialade(m): 1:59pm On Jan 18, 2016 |
femialade: |
Re: Lets Talk Annuity by F00028: 11:07am On Feb 19, 2016 |
what's the catch? |
Re: Lets Talk Annuity by femialade(m): 1:28pm On Feb 27, 2016 |
F00028:its a payment that will last for a retirees life span with no fear of exhausting his/her pension after few years |
Re: Lets Talk Annuity by okitejoseph: 4:50pm On Sep 09, 2019 |
Annuity is mostly used to stoock up payments for reteired folks... |
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