Benefits of Annuities

Guaranteed lifetime income: Annuities provide a steady stream of income for life or a set period, which helps reduce the fear of outliving your savings and offers financial stability in retirement independent of market fluctuations.

Tax-deferred growth: Contributions to an annuity grow tax-deferred, meaning you don’t pay taxes on investment gains until you withdraw money, typically at retirement when you might be in a lower tax bracket.

No contribution limits: Unlike many retirement accounts such as 401(k)s or IRAs, annuities usually have no annual contribution limits, allowing you to invest large sums like windfalls or business sale proceeds.

Customizability: Annuities can be tailored with various payout schedules, risk levels, and additional features like death benefits or long-term care riders to match individual financial goals.

Protection from market volatility: Once payments start, especially with fixed annuities, income is guaranteed and unaffected by market ups and downs, offering peace of mind for essential expenses regardless of economic conditions.

Transferable benefits: Many annuities include death benefits, allowing remaining payments to be transferred to beneficiaries, which can support estate planning.

Enhanced retirement satisfaction: Research shows retirees with annuities often experience less financial stress, greater happiness, and a higher likelihood of maintaining their desired lifestyle due to predictable income.

Encourages better spending: Knowing income is secure can reduce spending anxiety and allow retirees to enjoy discretionary spending like travel or leisure.

Added protection against financial abuse: Irrevocable contracts with insurers can protect income streams, providing security even if cognitive decline occurs in later years.