What is an annuity?

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 forms a supplement to your remaining retirement income during your retirement.

Annuity offers tax advantages, such as the deduction of premiums and deposits in your income tax return. Your annuity payout is taxed, but you do not pay capital gains tax on the accrued amount.

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