Level Income Annuity Option

I m conscious that there s a potential contradiction in this reasoning desiring the longevity risk pooling of an annuity yet rejecting the.

Level income annuity option. Fixed or nominal income annuity. Under this option the plan pays a higher benefit before your social security retirement benefits begin to account for social security benefits you have not yet begun to receive. The level income option provides nearly equal monthly retirement payments to you before and after you become eligible for social security benefits. Leveling requirements leveling has two main requirements.

A fixed retirement income sometimes called a level annuity means you ll get the same pension payments year after year for the rest of your life. The periodic payments are guaranteed for life. However if your client chooses a level income it won t keep pace with inflation and it s buying power will reduce in the future. An income annuity also known as an immediate annuity a single premium immediate annuity spia or an immediate payment annuity is typically purchased with a lump sum payment premium often by.

If you need income to start as soon as 30 days and as far out as 1 year then a single premium immediate annuity spia is the best annuity type that will provide the highest contractual guarantees. These annuities will pay the same income amount. A level annuity is the best retirement income option. You must be eligible to receive benefits from your employer s pension plan and you must provide your employer with a written estimated ssa benefit amount.

This means that over time you ll be able to buy less with your income as prices of things like food and energy go up. This option will provide a higher starting income than an increasing income. Your client can choose to have their income stay the same throughout the term of their annuity. It s simply a way to supplement your income with pension plan benefits until you apply for and start receiving social security.

Immediate annuity income annuity with an immediate annuity also known as a spia you begin receiving payments within a year of purchasing the annuity.