For many Americans, saving for retirement is an intimidating challenge. While there are many options available, one worth considering is the annuity.
Annuities can be complex, but they have the potential to lessen your stress as a retiree. According to a 2021 survey completed by TIAA (Teachers Insurance and Annuity Association), 45% of Americans worry about running out of funds in retirement.
That’s where investments like 401(k)s, IRAs and annuities step in. They can offer a source of reliable income during your retirement years. However, they won’t work for everyone.
Here’s a rundown on how annuities work and whether they may benefit you.