There are different types of annuities out there available in different designs, specifications suited for retirement goals. Retirement goals tend to vary from person to person. The risks involved also differ hence, the reason why they come with different features to suit different needs. When choosing annuities, there are several factors that one must consider. These include the goals set and annuity rates available.

Annuities for young people and old people are not the same. Young people look for annuities that accumulate in periodic deposits (deferred annuity). Old people on the other hand are usually interested in lump sum deposits which pay out in monthly streams (immediate annuity). Other things to consider are whether the rates are fixed, variable or indexed. The choice will however, depend on the specifications one is looking for.

Some people find it very difficult to select annuities that suit them. That is why it is important to take time comparing them. When comparing rates, it is important to look at the risks involved to determine whether the ones that one can handle comfortably. It is also important to know the kind of returns one is looking for to avoid future inconveniences.

For fixed annuities, the rates of returns are usually agreed upon at the time of purchase from the insurance company. The annuities will continue increasing in the safe for as long as the person or his dependants own it. The good thing about fixed rates is that they are never affected by economic meltdowns and stock. It is considered one of the most secure retirement plans in existence today.

Fixed annuities are usually divided into two. Immediate annuities attract more retirees than young people. This type of annuity comes with a option for lifetime income. What it means is that the insurance company will pay up a lump sum to cater for the remaining monthly payouts. Differed annuity on the other hand is popular among young people. It allows them to contribute a substantial amount to their savings every month.

The other type of annuity available is variable annuities. This type of annuities varies in rates according to the market behavior and stocks. Some may find it a bit risky, but there are those are well suited for it. It is fitting for people who are looking to grow their incomes before retirement. Insurances do not offer any guarantees on variable annuities. Their rates are solely pegged the behavior of the market.

With variable annuities, investors should be ready for anything. Sometimes the returns may fluctuate to a negative and in other instances, go higher than expected. Before one chooses variable annuities therefore, one must consult carefully to know how much assets to allocate in it.

Investing in annuities is something that requires thorough consultation. Insurance companies can help one determine the best annuity to invest in. It also helps to understand annuity rates offered by different insurance companies. One should take time comparing to find the annuity with best rates and returns. Knowing all will ease the selection process.