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 are also unique in that they can provide guaranteed lifetime income for those in need. Each type of annuity has its pros and cons, and your investment advisor can help you decide which is the best for you.
An income annuity is a type of annuity with limited or no liquidity that provides guaranteed income for life or for a period you choose – either immediately or at a future date.