I gave a talk on financial planning to several employees of a company. These employees will be approaching retirement. I advised them about the importance of getting an adequate income during their retirement and offered them a suggestion on how they can manage their own annuity. This suggestion is set out in this paper.
I suggested that they can use the results of this calculation as a benchmark to compare the payout from a life annuity bought from an insurance company. If the payout is quite close, they can buy the life annuity and save the hassle of managing their finances. However, a self-managed financial plan provides greater flexibility compared to a life annuity, and is an advantage to a financially aware person.
I suggested that they can use the results of this calculation as a benchmark to compare the payout from a life annuity bought from an insurance company. If the payout is quite close, they can buy the life annuity and save the hassle of managing their finances. However, a self-managed financial plan provides greater flexibility compared to a life annuity, and is an advantage to a financially aware person.
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