Retirement Annuity

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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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References in periodicals archive ?
The company has grown from pension plan takeovers and sale of individual retirement annuities in recent years, which offset declines in defined benefit and other products the company has deemphasized over time.
If the employer suffered critical losses or folded completely, retirement annuities could be severely compromised.
A qualified longevity annuity contract (QLAC) may be held in a qualified defined contribution plan (such as a 401(k) plan), IRC Section 403 plans, traditional IRAs and individual retirement annuities under Section 408, and eligible IRC Section 457 governmental plans.
In September, Hargreaves Lansdown said it had decided against offering a broking service allowing investors to cash in their retirement annuities when the planned scheme launched next year.
A multi-line insurance company, Horace Mann provides auto and home owners insurance, retirement annuities, life insurance and other financial solutions.
The number of retirement annuities being bought by savers has also started to edge upwards for the first time in three years, in signs that the freedoms - launched in April - have not killed them off.
Under Government reforms which came into force in April, savers aged 55 or more are no longer required to use their pension pot to buy retirement annuities, which give them a guaranteed income for life but have been criticised for poor performance.
Savers aged 55 or more are no longer required to use their pension pot to buy retirement annuities, which give a guaranteed income for life but have been criticised for poor performance.
The authors found that many people would voluntarily work longer if they were offered actuarially fair lump sum amounts as an incentive to forgo collecting retirement annuities for a period of time.
403(b) plans, individual retirement annuities and accounts (IRAs) under Sec.
Standard Life also brushed off concerns about the potential impact on its business of changes revealed in the Budget to end rules that force people to buy retirement annuities.