PRINCETON, N.J.--(EON: Enhanced Online News)--As with any major financial decision, shopping around for the best immediate annuity rate prior to buying can get you a substantial amount of extra retirement income. According to a recent issue of Annuity Shopper survey, shopping for the best immediate annuity rates can result in greater lifetime retirement income; as much as 10%-15% each year for the rest of your life, and more in some cases.
Immediate Annuity Calculator
Current and future retirees have a number of financial strategies to consider when it comes to generating income in retirement. One of the most common strategies is to roll over their qualified dollars, from an IRA or 401k plan, into an immediate annuity. Unlike deferred annuities which are designed to produce a guaranteed income stream at a future date, immediate annuities produce income directly following payment of the premium. When selecting an immediate annuity provider, it is important to shop and compare similar contracts offered by different insurance companies.
Calculating Annuity Rates
In the latest quarterly review of immediate annuity rates published by Annuity Shopper (October 2013 issue), there were many examples of immediate annuity quotations from the 21 insurance companies sampled that ranged by as much as 10% to 15% from highest to lowest payer.
For a male age 65 retiree the worst single life annuity in Annuity Shopper's survey paid you only $524 a month. While the best provider paid you up to $595 a month for the same $100,000 premium. This means that buying an annuity from the highest paying company would increase your retirement income by nearly 10% for every month for the rest of your life. That's a $10,000 gain over the lowest paying company. Similar gains were found for women buyers of annuities, too.
How can you find the best immediate annuity company for your age and gender? Just download the Annuity Shopper here. The download is instant and free. They'll also send you a printed copy of the 64-page for free. The site also has a free annuity calculator here.
Annuity Shopper Quarterly has been published regularly since 1986 by Hersh Stern, founder of WebAnnuities, one of the nation's leading online annuity brokerage firms. From his offices near Princeton, NJ, Hersh offers leading edge annuity services to tens of thousands of consumers and corporations. Among its many corporate pension clients are companies like Bulova Watch, Coulter Corp., Gumps, McCall's, Richardson-Vicks, Tokio Marine, Velcro Corp., and Wickes Furniture.