Annuities

There are many different reasons to purchase them. One of the biggest advantages according to annuity owners is that it allows savings to grow without any current tax, since earnings on them are not taxed until payouts begin. Many others say they like them because it provides a steady stream of income they cannot outlive, a particularly useful feature for those who do not have a defined benefit pension plan.

In a recent Gallup survey, people who had purchased an annuity said they believed annuities:

• Have a good rate of return.
• Provide a long-term savings plan.
• Are an important source of retirement security.
• Are an easy way to save for retirement.
• Can ensure a surviving spouse has a continuing income.
• Provide flexibility in how payouts are received.