Help with investments and annuities

How to evaluate and choose the right options for you.

Annuities are a popular investment option for those in or near retirement (typically ages 50 to 85). Most annuities provide tax-deferred growth as you save for the future and can be used to create a guaranteed stream of income when you retire.

There are many types of annuities and each can provide specific benefits depending on your personal financial goals. But most annuities provide tax-deferred growth on your premiums and earnings, and provide another way to save for the 30 years or more you may spend in retirement.

Social Security and a pension (if you have one) may not be enough to maintain the standard of living you’re used to. And investments—while important—will be subject to the ups and downs of the market, which means your income could go up and down with it. Annuities allow you to create your own source of guaranteed income—money you can count on no matter what happens.

Most annuities are long-term investment options and can be a good way to build retirement savings over a period of several years. They offer another way to save for retirement, and you’ll benefit from tax-deferred growth on both your premiums and earnings.

Depending on your financial goals, you can purchase an annuity that offers a guaranteed fixed rate of return, protection from premium loss, or growth tied to market performance. And if you’re ready to retire now, you can use an annuity to create a source of guaranteed income for as long as you want—including for life.

  • Your employer’s retirement plan: Your employer's defined contribution retirement plan is an important retirement savings vehicle.
  • Social Security: While this makes up a portion of your retirement income strategy, it was never designed to provide enough benefits on its own for a comfortable retirement. It may only cover one-third, or even less, of your retirement needs.
  • Personal savings: Personal savings can be a source of income for you during retirement, but it may not offer the tax advantages or growth potential of some other investments. The advantage of personal savings is that it can provide you with cash to help meet day-to-day financial needs.
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