The Ultimate Guide To AnnuitiesYour One-Stop Resource for Retirement
What is a longevity annuity?
These are also known as advanced life delayed annuities and they offer protection against outliving your retirement money.
If you buy a longevity annuity you will have to wait to reach around 80 years of life to start receiving payments. Once these payments begin, you will have a guaranteed income source for the rest of your life. Usually the longevity annuities are in combination with other retirement strategies and are funded with the remaining of some retirement account.
In longevity annuities, your money will grow until you start receiving payments, similarly to deferred annuities. If you decide to receive payments later in life these payments will be bigger, but if you die before receiving payments your heirs will get nothing of the money you invested.