Many years ago the perception of a retiree was an elderly person sitting in front of the television with a pipe and slippers, surrounded by grandchildren. However, as people are living longer and are staying youthful for more years, the actual reality of this image is something a lot different.
Retirees often have ambitious plans about their retirement. Many want to travel and see things that they have never experienced before, such as The Grand Canyon, New York or luxurious breaks in the Caribbean. Their plans might involve one lengthy trip around the globe or short breaks in major cities. The world really is their oyster. Some retirees like to be more adventurous, taking part in sky dives or white water rafting, along with exhilarating scuba dives and other activities. Others like to treat the family to holidays and gifts which also requires a lot of money.
The trouble is, with such ambitious plans the amount of financial backing required needs to stretch a lot further than you’d think. With annuity rates being at an all time low, it can be difficult for retirees to find the finances they need for effective retirement planning and to put their exciting dreams into action.
This means it is as important now as ever before to save for retirement. Saving is more difficult with growing utility bill costs but it is necessary to have as much as possible to buy an annuity. When it comes to purchasing the annuity, it is vital that you shop around for the best deal. Simply accepting the first annuity rate you are offered is not advisable, because this is usually the least attractive rate on the market. Using the open market option is free and can improve your income on retirement dramatically.
You can also ensure you have a better annuity by selling your house or equity in your house so that you have more buying power when it comes to purchasing your annuity. Many people who have ambitious travelling plans decide to downsize their house to a smaller flat or bungalow which releases vital funds for the annuity. This is a good idea as it makes more sense in the long run.
Some people also decide to have joint annuities which combines two peoples lump sums, perfect for people in a partnership or marriage that want to have extra funds to travel together or live out retirement dreams.