Program withdrawal vs Annuity

Pension Fund Administrators offer program withdrawal while Life Insurance companies offer Annuity.

Program withdrawal : it is a periodic pension payment to a retiree from his or her pension balance. The payment is paid for an expected life span which means the money can finish at a particular point (Maybe when the retiree is 75 or 80 years). The payment is smaller compared to Annuity.


Annuity: it is a monthly payment to a retiree and the payment is for his/her life time (even if he/she lives till 150years), the payment is always bigger than program withdrawal and the payment can never stop as long as the retiree is alive.

The good news is that even if you have picked Program withdrawal and you have started receiving pension, you can still move to Annuity and Annuity pays more.

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