Annuities can be an important part of a retirement savings plan. They are a flexible financial vehicle that can help you achieve your financial goals.
One of the biggest differences between annuities and other types of retirement savings products is the amount you can save. Similar to 401(k)s and IRAs, annuities offer a tax-deferred savings opportunity. But annual contributions to an annuity are not capped at certain amounts like they are with 401(k)s and IRAs. If you’re playing catch-up when it comes to retirement savings, this could be a major advantage.
Annuities also provide flexibility after you retire. You can elect to receive dependable income for a certain time period or over your lifetime, depending on the type of annuity you select and the amount you have invested. Or, you can elect to take a lump-sum payment. When it comes to annuities, you have a lot of choices!
Have more questions? Consult a financial professional to determine if an annuity is right for you.