What is an annuity?
An annuity is a financial product issued by an insurance company that can help provide income during retirement. Depending on the type you choose, an annuity may offer principal protection, growth potential, or a predictable stream of income for a set period or even for life. Annuities aren't one-size-fits-all, so it's important to understand how each type works before deciding if one fits your retirement goals.
Are annuities good for retirement?
For many retirees, an annuity can be a valuable tool for creating reliable retirement income and helping reduce uncertainty. Whether an annuity is appropriate depends on your financial goals, income needs, health, tax situation, and overall retirement plan. The best approach is to understand your options and determine whether an annuity complements your existing investments rather than replaces them.
Can annuities provide lifetime income?
Yes. Certain types of annuities can provide income that lasts for the rest of your life, regardless of how long you live, if you elect a lifetime income option. This feature can help reduce the risk of outliving your retirement savings and provide greater confidence when planning your retirement income strategy. Income options and payout amounts vary by product and insurance carrier.
Why should I compare annuities before buying one?
Not all annuities are the same. Features such as fees, income options, surrender periods, growth potential, and riders can vary significantly between products and insurance companies. Comparing multiple options helps ensure you're choosing a solution that aligns with your retirement goals, timeline, and income needs. Get started with our free quiz to find out what works for you.
