You may take an annuity investment at the same time as someone else but you will find that you may not earn the same. You need to understand this so that you may be able to make the investment based on your future needs. It is very important to find out the things that determine how your investment will serve you in the future so that you can take the appropriate steps today. The annuity pension calculator is a great asset to help you in understanding what your investment will be worth when you start receiving it as per your agreement with your insurance broker.
- The interest rate at the time of investment
The institutions you use to make an investment with always invest the money. This is why you are able to gain an interest by investing with them. When the interest rates are high at the time of investment, the institution will invest it expecting high returns which also mean you will be able to make more with that investment than you would have if you have invested it when the interest rates are low.
- Your investment amount
The more you invest, the more you will be able to make when your investment matures. This is a very important factor which you need to consider seriously even as you use the annuity pension calculator. You need to make decisions on whether you should deny yourself today to be able to live comfortably tomorrow. If you feel your future is already secure and you only need a small amount, it is also something you should have in mind. What is important is your comfort in your retirement years.
- Age and gender
Statistically, women tend to have a higher life expectancy than men. This means that often, women tend to receive lesser annuity than men because they are expected to live longer hence will be in need of their annuity for much longer. Men on the other hand receive more because they are expected to depend on the annuity for a much shorter time based on their life expectancy. Likewise, older people receive more from their annuity investment because, again, they are expected to need their annuity for a much shorter time than someone who starts receiving his annuity at a much younger age. The annuity pension calculator is a great guide to help you in determining when and how much you expect to receive.
- The expected duration of payment
When investing in your annuity, it is important to consider how long you expect to keep receiving the payments. If the payment period is short, you receive more. If however the payment arrangement is for life or even after your death so that your spouse and children keep receiving it, you will receive less.