🇺🇸 US Annuity Products 🇬🇧 UK Pension Drawdown 📅 Ordinary vs Due

Annuity Calculator

Calculate the present value or future value of a series of equal payments. Essential for retirement planning, pension valuations, and loan analysis worldwide.

Quick Answer
PV of annuity = PMT × [1 − (1+r)^−n] ÷ r. FV of annuity = PMT × [(1+r)^n − 1] ÷ r.

Annuities and Pensions Around the World

Country Product Type Key Feature
🇺🇸 United States Fixed, Variable, Indexed annuitiesTax-deferred growth; no contribution limit
🇬🇧 United Kingdom Pension annuity / DrawdownPension freedoms (2015): flexible access at 55+
🇦🇺 Australia Account-based pensionMinimum drawdown rates set by government
🇨🇦 Canada LIF / RRIFMandatory conversion from RRSP at age 71
🇩🇪 Germany Riester / Rürup RenteGovernment-subsidized; strict annuitization rules

Frequently Asked Questions

What is an annuity?

An annuity is a series of equal payments made at regular intervals. It can refer to a financial product (an insurance contract that pays income) or simply a mathematical cash flow pattern. The present value of an annuity tells you how much a stream of future payments is worth today.

How do UK annuities differ from US annuities?

In the UK, pension freedoms since 2015 mean you no longer have to buy an annuity at retirement. UK annuity rates are regulated and vary by provider and age. US annuities come in many forms: fixed, variable, indexed, and immediate. UK annuity rates are typically lower than US rates due to different interest rate environments and life expectancy tables.

What is the difference between ordinary annuity and annuity due?

An ordinary annuity (most common) makes payments at the end of each period. An annuity due makes payments at the beginning of each period, making it worth slightly more — multiply the ordinary annuity value by (1 + r) to convert. Most mortgages and bond payments are ordinary annuities; rent and lease payments are typically annuities due.