Annuity: Who Qualifies and What You Get
Learn how annuities provide tax-advantaged savings to help you bridge the gap in your retirement planning.
An annuity is a way to build up savings for your retirement that offers specific tax advantages.
Who it's for
This is designed for anyone who has a gap in their pension coverage and needs to build up extra savings for their later years.
What you get
You receive a way to save money for retirement that is tax-advantaged. This means the way your savings grow is treated more favorably by the tax system compared to standard savings.
What it costs you
While there is no direct government fee to join, you will have to pay management fees to the financial institution that manages your account.
The catch to know
Because this is intended for retirement, you may face high penalties if you try to withdraw your money before the intended time.
How to apply
- Research different banks or insurance companies to find a provider.
- Open a specialized account, often referred to as a lijfrenterekening.
- Set up regular contributions or a lump sum deposit.
- Consult with a financial advisor if you are unsure about your specific tax situation.