When shopping for life insurance, consumers should consider annuities as a type of investment for their retirement plan.
People who work for the government or serve in the armed forces fall into this category. The government provides a variety of programs, including:
The Thrift Savings Scheme (TSP)
Civil Service Retirement System (CSRS) (CSRS)
The Federal Employees Retirement System (FERS) is a retirement system for federal employees (FERS)
The main distinction between the TSP and the other two plans is that the TSP is based on the policyholder’s contributions rather than their salary or length of employment. The other two plans are referred to as defined benefit plans.
According to a government website dedicated to the TSP, the majority of contributions to these annuity programs are made on your behalf by your agency. According to the website, your contributions are required, and the amount you contribute is set by law.
Many consumers, including those who are not government employees, consider an annuity as an investment option. However, before selecting an annuity, consumers should consider the various types available, as some may be linked to more risky investments, such as stocks.