When you have an annuity, it can be an excellent way to make sure that you have a steady stream of income once you decide to retire from your job just as long as you pick out the right format to suit your needs. You may have a lot of questions along the way, including whether or not I can get a lump sum for my annuity, what the penalties might be, and so on. Just as long as you are going into the process with all of the information you need to make the right decision, you should be in for a pretty decent outcome that you can feel comfortable about.
Can I Take My Annuity As A Lump Sum?
There are a lot of companies out there today who are offering the option when people want to get a lump sum for my annuity. You can take the pension out as what is known as a lump-sum distribution rather than a payout on the annuity. There may even be some situations where you can just take a portion of it as an annuity and then another part as a lump sum.
How Much Does An Annuity Pay Out?
The amount of money that any annuity will payout will vary greatly depending on several factors. You could have an annuity that will give an offering of a little over $400 a month when you have a $100,000 premium. Over 12 months, it will come to around $5,000, which happens to be roughly 5% of the amount of the initial premium. In such a case, you could say that the payout rate of the annuity is 5%. You can take a look at the factors surrounding your annuity and determine what the payout rate might be for your unique situation.
Should You Take A Lump Sump Pension Offer?
For some people who are looking at their options to get a lump sum for my annuity, taking such an offer might be attractive if they are ill or there is a history in their family of having a shorter life expectancy. Your current age should always be taken into consideration if you are thinking of going with a lump sum offer and you have to think about any of the potential penalties that may be in place for doing so.
One of the drawbacks of working with annuities and determining whether or not you want to take a lump sum is that the earnings are taxes as income instead of using the capital gains rate over the long-term. An annuity will often charge more than a percentage for the year when there is a death benefit, but it will also only pay off if you happen to die once your account goes under the minimum guarantee.
Do you still want to know more about how to successfully get a lump sum for my annuity? We are always happy to help at We Pay More Funding. All you have to do is get in touch with us, and one of our team will go over all of the details and make sure that you are aware of all of the options that are available to you before you make a decision.
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