Can someone explain what Retirement Insurance is that everyone buys here? Is it similar to an annuity? I notice people start buying this at a young age too. Is it worth it?
This is not Financial advice.
Retirement Insurance is basically an annuity but it’s an annuity that you build up in your working stage and unlock once you reach retirement age. So you are right there!
Personally I think just investing in index funds would give you much more flexibility in terms of the option to withdraw early if you need and potentially having much larger returns (also you can use the end sum to just buy an annuity when you retire if you want).
However, if you are already doing that and just want something extra… then maybe you could do it. I would make sure that I am already maximising my labor pension contributions (6% extra) first.