Annuity Calculator

The annuity calculator is used to compute the payout amount of any continuing payment with a fixed total annual amount.

Annuities are often packaged as a financial product to enable one ( either as an employee or self-employed) to plan for their pension savings in a manner that the savings become a regular source of income , which is taxable, for the rest of their lives.

There are several types of annuities which include:

• Single life annuities - all the income is paid to you
• Joint life annuities - some or all of your income is paid to your partner after you die
• Escalating annuities - your income rises every year, often by the rate of inflation
• Enhanced annuities - these pay you more income if you have a medical condition
• Investment annuities - your money remains invested with the potential for higher income
• Flexible annuities - these are complex products that pay you a guaranteed income but leave the potential for your money to grow by keeping part invested
• Fixed-term annuities - these pay out for a fixed period, after which you get paid a lump sum

There are several benefits related to having annuities. These include a guaranteed income after retirement, an income that keeps up with inflation, a higher income in case of poor health.