When selecting an annuity, consider the following factors:
- Type of Annuity: Decide between fixed, variable, indexed, and immediate annuities based on your income needs and risk tolerance.
- Payout Options: Choose between lifetime income, fixed-term, or joint survivor options.
- Fees and Charges: Be aware of administration fees, management fees, and surrender charges.
- Inflation Protection: Consider if the annuity adjusts for inflation to maintain your purchasing power over time.
- Financial Stability of Provider: Select an insurance company with a strong financial rating to ensure they can meet their payout obligations.
- Tax Implications: Understand how the annuity payments will be taxed, both during the accumulation phase and the payout phase.