The definition of a pension annuity is a way of managing pension funds to be used as regular income. as a reward for the pension fund, pension fund provider agencies will provide a steady income to the owners retirement annuity for life is concerned.
Amount of income to be received will depend on the amount of pension funds and market conditions at the time of purchase of retirement annuities.
In addition, the income to be received will depend also on the following matters:
- Amount of funds remaining after you take it in cash.
- Annuity rate offered by a pension provider agencies
- Gender will influence also on the receipt of income, women will be earning less than men.
- Age also plays a factor in determining the amount of income. the older participants, the greater the revenue. The ideal age to buy a pension annuity is between the age of 55 years up to the age of 75 years.
- Health or lifestyle factors, for example, a smoker or who have a history of chronic disease, will have higher incomes than non-smokers or who had no history of chronic disease
- Factor of work and residence also affects the amount of retirement annuity fee income.