Factors That Determine Annuity Income
6 Factors That Detemine Annuity Income
These 6 factors affect the amount of income generated by an annuity.
- Interest Rate
- Annuity Type and Options
- Guarantee Period
- Premium Amount
- Income Deferral
The interest rates at the date of deposit or the rates established previously with a rate guarantee.
The life expectancy of the annuitant(s).
The choice of annuity type, (e.g. Single Life) and options (e.g. Indexing, Return of Premium, etc.) will affect the amount of income.
The longer the Guarantee Period, the lower the income amount.
The larger the premium the greater the income payment.
The period of time between the Purchase Date and the Income Start Date.