How does an income annuity payment differ from systematic withdrawal?
An income annuity payment (or annuitization) is similar to a systematic withdrawal plan in that both cases provide regular income payments. The difference between the two types is that the income annuity can guarantee1 you income for the rest of your life, whereas a systematic withdrawal plan lasts only as long as your savings last.
Related Questions
- Can you tell me more about the different payment optionspayroll/annuity deduction, automatic bank withdrawal, and direct billing?
- Does the income from the annuity contract differ significantly from the income producing asset that was transferred?
- How does an income annuity payment differ from systematic withdrawal?
