Share post
Debt Consolidation Forums Debt Problems forums

Is it ok for a retired person to use annuity to repay debts?

member profile picture
Posts: 1
Credits: 0

One of my uncles is using his annuity to pay back some of his debts since he has retired and doesn't have much income. But, I want to know, is it ok to do it?

I won't recommend that. I would suggest you to get part-time job instead.

Money withdrawn from an annuity is taxed just like a normal income. Plus, the insurer who holds your annuity may charge a withdrawal fee, and that can be as high as 7%. So you have to pay a significant amount.

Sub: #1 posted on Mon, 06/03/2019 - 00:39

Nick Jonas Nick Jonas

(Posts: 428 | Credits: )

he has to pay the tax and penalty charges for this. Your uncle could take out a consolidation loan instead.

Sub: #2 posted on Fri, 06/07/2019 - 04:46

Sanders Patricia Sanders Patricia

(Posts: 1239 | Credits: )

Contact me for a permanent solution to your debts.My name is KeroXXXson and my Cell is 28XXXXX29

Sub: #3 posted on Mon, 06/10/2019 - 17:45

farmer111xxx1 farmer111xxx1

(Posts: 1 | Credits: )

I would agree with Nick. Money taken from annuity can be taxable as a normal income.
The insurance company may also charge you a withdrawal fee as much as 7%. So, the costs will be higher.

Sub: #4 posted on Tue, 06/11/2019 - 02:58

tiarajoseph11 tiarajoseph11

(Posts: 470 | Credits: )

Page loaded in 0.994 seconds.