Pension is a regular payment that is made during a person’s retirement from an investment fund to which that person or their employer has contributed during their working life.
A pension or retirement benefit scheme is a form of insurance against the risk of poverty in old age by ensuring that they are able to provide for themselves in retirement.
What is a Personal Pension Plan/a Retirement Plan?
This a vehicle or service offered by insurance companies to build up a sum of money that can be used upon retirement. The money you put in is invested to generate a regular income referred to as pension.
How does one save for Retirement?
You can save through:
Employer Sponsored Schemes.
Individual Pension Plans
Government Sponsored Plans
What is Annuity?
This is a contract between an individual and an insurance company where the individual pays a premium and the insurance company pays an income to the individual for the rest of their life after retirement.
What are the types of Annuities?
Deferred Annuity – this type of annuity is for people who would like a guaranteed income after retirement but still have working years ahead of them and therefore do not need it to start right away.
Immediate Annuity In this annuity, the income payments begin within 12 months after you buy the annuity. This is a suitable annuity for those who are about to retire or have already retired. The premium is paid as a lump sum at the time of purchase.