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Pension annuity

25 June 2012 Reading: 2 min Views: 6 271

What could be better than receiving part, or most, of your pension savings now.

Pension Annuity

What could be better than receiving part, even the larger part, of your pension savings now?

Many people are put off by the pension annuity, while others have long been enjoying the benefits of this legislative innovation.

Advantages of a pension annuity

1. You receive 50% - 60% of your pension savings right now.

2. Your money is not eaten up by inflation.

3. You are guaranteed a pension from two sources: the pension fund and the annuity company.

4. In the event of death, the remaining amount goes to the heirs.

Disadvantages

1. One more financial contract.

Features of an annuity:

1.Lifelong payments
2.Designation of an heir
3.The option to take the annual payment 1-20 years in advance
4.Payments start as early as age 55 (compared with the pension system — from 58 for women and from 63 for men)
5.Covering current needs (repaying loans, travel, buying real estate, etc.)
PLEASE NOTE: The minimum amount for taking out an annuity is on average = 3,000,000 tenge (three million tenge)
Examples:
A 55-year-old man transfers 5 million tenge of savings to an insurance company (life insurance company)
On average, he will receive 325,000 tenge per year for life
He can take the annual payment 20 years in advance – 4,250,000 tenge
A 60-year-old woman with 10,000,000
On average, she will receive from 500,000 to 800,000 tenge per year for life
She can take the annual payment 20 years in advance – 9,100,000 tenge

Read more about the pension annuity

Exploring the pension annuity

The pension annuity in brief

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