Being prepared for retirement isn’t just about saving, it’s also about generating an ongoing income so you can retire with confidence.
An annuity, by definition, is simply an agreement to make a series of payments of a certain amount of money to a specified party for a predetermined period of time. Annuities also refer to a commercial insurance contract offered by a life insurance company. These contracts are guaranteed to pay out at least a certain minimum amount on a periodic basis to the beneficiary until death, even if the total payments exceed the amount paid into the contract plus any accrued interest or gain. Because of this type of protection and the fact that you cannot withdraw funds penalty-free until you are age 59 1/2, annuities are considered retirement savings vehicles by nature.
