Annuities can be a powerful way to save for retirement. They are specifically designed to help you reach long-term financial goals, whether you want to put money aside for the future, generate a stream of income you can’t outlive, or both. Annuities may help your savings grow faster because you don’t pay income taxes on the money in your contract until you take a withdrawal. Annuities also are unique in that they can provide guaranteed lifetime income. Each type of annuity has advantages and drawbacks that you should consider carefully before deciding whether an annuity is right for you.
A type of annuity with limited or no liquidity that provides guaranteed income for life or for a period of time you choose — either immediately or at a future date.