A retirement annuity is considered to be the best option for ensuring a pleasant retirement. It is recognized to be an effective option to enhance retirement income with the comparing of annuity rates. A wide number of annuity providers are present in the market in these days. Since annuity contributes to being an investment which takes care of you during the golden years of life, it is a prerequisite to being aware of the factors which have an effect of the retirement annuity rates.
Factors determining annuity rates:
The annuity rates are dependent on a number of factors. For example, the price which is offered to men is different as compared to the rate which is offered to men. This is owing to the fact that there is a difference between the mortality rate of women and men. Some of the other factors which influence mortality rate are inclusive of the following:
– Whether you are a smoker or not: There is a significant difference between the retirement annuity rates of smokers and nonsmokers.
– Illness: You present health conditions that are known to have a significant effect on the annuity rate.
– Impaired health: In case you are suffering from impaired health, you have the eligibility for impaired life annuity and owing to this, you may procure a higher rate.
– Care requirements: A person who requires consistent care is subjected to higher annuity rates.
Other factors which have an influence on the annuity rates include:
– Rate of interest: The retirement annuity rates are determined to a large extent with the aid of yield ongovernment bonds.
– Availability of annuity options: The number of options you select is known to have a direct effect on the price. The more options you select, the lower will be the monthly income.
The annuity rates are also influenced by mortality and gender.