What is an annuity?

An annuity is a fiscally advantageous way to build up extra capital that you can have paid out periodically when you retire. This can be for yourself, but also for your partner, child or grandchild. You can make periodic deposits, and this amount will supplement your other pension income during your retirement.

Annuities offer tax benefits, such as deduction of premiums and deposits in your income tax return. The payout from your annuity is taxed, but you do not pay wealth tax on the accumulated amount.

There are three ways to build up an annuity: an annuity savings account, an annuity investment account, and an annuity insurance.