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Retirement Annuity
(redirected from Retirement plans)

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Retirement Annuity
An annuity one purchases to provide for oneself in retirement. In general, one purchases a retirement annuity well before retirement and makes contributions to it throughout one's working life. The contributions are invested on behalf of the annuitant, who begins to receive payments from the annuity after retirement. Many retirement annuities (especially those sponsored by an employer) are tax-deferred, meaning that the annuitant does not pay taxes on the funds in the pension until he/she begins making withdrawals. Annuities may have defined contributions, defined benefits, or both. See also: 401(k), IRA.
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Fortunately for those who are still at the prime of their lives, there are a variety of options to choose from in available instruments that are designed to accumulate for you the funds that you need for your retirement plans.
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