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How much money do you need to invest in an annuity?

At the age of 55, how much money (pounds sterling) would you need to invest (and in what) to guarantee you an annuity of a reasonable amount to enable you to survive, let´s say the next 30 years or so?

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7 Responses to “How much money do you need to invest in an annuity?”

  1. [email protected] said :

    $0 do not invest into an annuity… if ytou have 5k or more invest into hard money loans!!

  2. Ivor Biggen said :

    Very much a one off guess but approximately £1,500,000,000.00.

    Any less and you might as well buy a short skirt and work the streets !

  3. Derek H said :

    Annuities aren’t worth it. Look into some bond mutual funds. Those pay interest, principal, and are pretty solid ways to go for retirement. Annuities aren’t worth it and usually do not carry thier weight for what you put into them. Most agents sell them for the high payout they recieve.

  4. GoodTimesMakingMoney said :

    I am tired of annuities getting all the bad press. If it is the choice between a CD and a Variable Annuity for the next 30 years, I am going with an Annuity every time. Between the two options, it is the only one with unlimited earnings potential.

    Go with an Annuity from a reputable insurance company. Also, have an adviser help educate you on risk as well as allocations.

    You would be paying less if you purchased low cost mutual funds, but for creating your own pension, study the “living benefits” to see which one suits you best. Avoid Equity Indexed Annuities (or make sure you can get ALL your money out the next day with little charge (less than 5%)

  5. Franco said :

    Annuities are a little too complicated to explain all the details here and it would pay you to speak to a financial adviser which might cost you about £200

    You would have to invest at least £5000 and the rate you get (payments to you) will depend on your age and sex and whether the rate will be level or indexed to inflation.
    I have no data for a woman of 55, but at older age,level annuities for women are: At 60 6%, at 65 6.6% and at 70 7.4%.

    The advantage of annuities is that the rate is fixed for the rest of your life come what may. The disadvantage is that when you die there is nothing to bequeath and this is not a very dignified way to go. For this reason I am dead against them. Also for relatively young people like you, the rates are not much better than from a term cash deposit a/c. and you would also have to go for index linked or escalating annuities which star at lower rates.

    I think you will do better to go for dividends from blue chip companies. Contact me privately if you wish, for free advice.

  6. Susan C said :

    Good times is absolutely right. Everyone gives annuities a bad name when in reality they are talking about the Variable Annuities. I wish they’d educate themselves on all of the benefits of Annuities especially for retirees and seniors. No management fees, no risk of loss, and pretty great interest rates compared to banks these days. Avoids probate, tax deferred, flexible, … I could go on and on. How bad can they be when that is what most companies use to provide monthly income for the rest of your life for retirees, and the lottery uses them for your lifetime payout. Finally someone else on this site that gets it. Nice advise goodtimes.

    Anyway… Tough question to answer not knowing your bills and how much money you need to live on. Most of my clients can live off monthly about $200K and live very well for the rest of their lives by turning it into a monthly income.

  7. Darin Widgeon said :

    Wow, this saves me a lot of annoying logins!!




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