There are several things to consider when it comes to purchasing an annuity including:
- Once chosen, the annuity option cannot be changed,
- You should consider the fees that you will be charged and why they are being charged,
- Full balance or partial balance annuities are available,
- In general, annuity payout rates are higher for older members than younger members and for larger amounts than lower amounts,
- The option to have payments start immediately or at a later date and continue for life,
- An annuity cannot be outlived
Purchasing an annuity is a choice. You are not required to purchase an annuity with your DC balance.