Bit of a deeper topic than just hunting for bargains.
I'm currently in my mid 40s. Gone past the mid-life crisis already, so thinking of retirement and saving up for the future.
I've gone and done some research, read some books and watched youtube on pension, super, and even the FIRE movement.
The latest jargon I've come across is "Annuities".
For those who don't know, I certainly didn't before reading about it, annuities is some form of fixed term pension, where you will be guaranteed an income after retirement.
Sounds great! But any websites I read or watch on youtube, they are all very vague on details, and because it is internet, most are intended for Americans, not Australians.
So, could anyone ELI5 (Explain Like I'm 5) how annuities work within Australia?
- Do I just hand over some money to some financial institute, every month, and when I retire (age 65), I can get what ever amount was set?
- When can I get started? I read somewhere I can only start this within a SMSF account, and after the age of 55?
— This can't be right, we all 'should' retire at 65. - Like I say, I don't know any details
- Do I need some financial planner to get started? I always sceptical of financial planners, I think they are more interested in their commission than to have my best interest.
Do excuse me if I'm being too broad. I am hoping for a lengthy discussion :)
Thanks in advance :)