Planning your retirement while you are still employed is a smart idea, since you must consider the fact that after retirement there would be almost no inflow of money. If you have retired in a high post that paid huge salary every month and if you have made quite an amount of saving then too you need to have a certain inflow of money for the sake of financial security. Planning for retirement means saving for your retired life and you can do it in two ways, either you can just keep aside a certain amount of money each month or you can invest in policies like annuities. It is advised though that you opt for the latter since if you just keep aside a certain amount of money each month, you can use it up anytime you are in a financial emergency just because you have the option to do so. But if you go for investing the money in policies, you would not be able to use it up before the time period is over thus protecting yourself from spending your saved money.
Annuities are policies whereby you pay a certain amount of premium for a certain period of time and after that time period is over, the company from which you have bought the policy from pays you back your money along with the interest accumulated on it, as monthly installments or as a lump sum amount as was agreed upon when the deal was made. There are different kinds of annuities that suits different people at different situations and these varied annuities offer varied annuity rates. Hence make sure you know well about each kind of annuity as well as their rates before choosing one for yourself. Take the help of the Internet to collect information or you can also ask your agent to fill you in. once you know about all the different kinds of annuities as well as their rates, find good and reputed companies that offer the annuity policy of your choice.
You can make a list of a few of your chosen companies and ask for annuities quotation from them and choose one based on the quotations they provide. You can calculate the amount of premium you need to pay every month based on the amount of money you are looking for as a return yourself with the help of an annuity calculator available online. But it goes without saying that if you start early; you would need to pay less than if you start near to your retirement. Hence plan for a peaceful and happy retired life much ahead of your retirement and be worry free for the rest of your life.