An annuity is a long-term investment that is issued by an insurance company and is designed to help protect you from the risk of outliving your income. Through annuitization, your purchase payments (what you contribute) are converted into periodic payments that can last for life.

How does MetLife annuity work?

You will receive income for life, guaranteed by the insurance company. If you die before the guarantee period is over, your beneficiaries will receive the remaining number of payments. This type of annuity option is often called a “life annuity with period certain.” Lifetime Income for Two.

What happens when a group annuity member retires?

A group annuity participant has a few choices, depending on the type of plan the employer offers. Plan rules often allow an employee who leaves the company to choose between a lump-sum withdrawal of her contributions or receiving periodic payments when she retires.

Are annuities a good investment for retirees?

Annuities can provide a reliable income stream in retirement, but if you die too soon, you may not get your money’s worth. Annuities often have high fees compared to mutual funds and other investments. You can customize an annuity to fit your needs, but you’ll usually have to pay more or accept a lower monthly income.

Who is responsible for paying the annuity premiums?

An annuity contract specifies that the insuring company will make regular payments for a specified time period, or for the life of the annuitant, in return for one or more premium payments from the contract owner. The annuitant is the person who receives the annuity payments.

Are pension annuities guaranteed?

Retirement annuities promise lifetime guaranteed monthly or annual income for a retiree until their death. These annuities are often funded years in advance, either in a lump sum or through a series of regular payments, and they may return fixed or variable cash flows later on.

Who is the issuing company for MetLife annuities?

MetLife separated a portion of our individual life insurance business (life insurance you buy in-person through an agent) and annuity business, establishing a company called Brighthouse Financial, Inc. Certain contracts remain with MetLife and others have transitioned to Brighthouse Financial 1, based on the issuing company for your contract.

Can you take out as many retirement annuities as you like?

Investors are permitted to take out as many retirement annuities as they like. However, the tax benefit is calculated in aggregate and not in respect of each retirement annuity. Similarly, the tax-free portion at retirement may only be claimed once.

When to start taking advantage of retirement annuities?

It’s officially retirement annuity (RA) season, when investors are encouraged to make use of their available tax deductions before the end of the 2019/2020 tax year, so as to boost their retirement savings. Here are answers to some frequently asked questions about retirement annuities:

Why are retirement annuities a good investment vehicle?

A retirement annuity is a suitable long-term investment vehicle for almost anyone wanting to save for a comfortable retirement. Specifically, if your employer does not provide pension or provident funds benefits, a retirement annuity is a great way to invest with tax-free money – subject to an annual maximum of 27.5% of taxable income capped …