Who is an annuity for?
Consider an annuity if you want to receive guaranteed income during your retirement. Fixed and variable annuities are great options for people thinking about their long-term retirement (10-20 years to retire), while immediate annuities are good for those nearing retirement who want income right away.
How does an annuity work?
An annuity is a contract with an insurance company that can guarantee income for your retirement years. An immediate annuity can begin income-for-life payments within a year of the purchase, or payments can be postponed to the future with a flexible premium deferred income annuity.
Why consider an annuity?
Everyone should plan for their retirement. Annuities are an additional way to plan for your future, along with an IRA, 401(k), or pension. Creating a stream of lifetime guaranteed income, can be a critical component to a retirement strategy.