How Can We Plan for Retirement? (2)

4. Use life insurance as a "financial account" with retirement functions

Everyone may know that life insurance income is not taxed when it is purchased through debt. Therefore, people who are eligible for life insurance, especially guaranteed capital index universal insurance, also consider their own maximum capital contribution insurance policies to be a very important part of their life planning. retirement.

5. The last source of income after retirement is the annuity

Annuity is also a type of insurance, it is a financial product created by insurance companies that can generate fixed income after retirement to protect investors because they live too long and their savings are insufficient. not to satisfy their future life. If you want to explain the difference between life insurance and annuity in one sentence, insurance solves the "start too early" problem, while annuity solves the "start too late" problem.

There are two types of annuities:

Immediate annuity and deferred annuity.

Let me start with the immediate annuity in the year you put the money in the annuity account of the insurance company, which will pay you a certain percentage of the benefit income from the amount you pay out each year. depending on your age. For example, the payout benefits for the 60s are around 6% per year, and the 70s are around 7% per year.