Annuity Analysis

Updated: 29 February 2024

What Does Annuity Analysis Mean?

An annuity analysis refers to the pertinent information one has to know before buying an annuity. This can include the payout schedule and the interest rate if a portion of the annuity is invested. It may even include the possible effects of inflation on the annuity.

Insuranceopedia Explains Annuity Analysis

If a person intends to buy an annuity, they will be given a number of options, which have a number of variables. From the schedule of payments to possible interest rates that will add extra money to their eventual payout, the applicant must carefully weigh a number of factors, especially since annuities are often relied on as a source of post-retirement income. One way of doing that is with an annuity analysis. This analysis will provide them with the exact (or reasonably approximate, because interest rates may change) figures they need to make an informed decision.

Potential annuitants can receive an annuity analysis from their broker.

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