An annuity is a contract normally issued by an insurance company. Deferred annuities enable you to set money aside and have it grow on a tax-deferred basis for your future use. When you are ready to retire, you can withdraw money as needed, or you can turn the value of your annuity into a regular income stream that is guaranteed by the issuing insurance company to last the rest of your life, regardless of how long you live. Annuities can help to grow your retirement money faster by converting taxable income into tax-deferred savings.
Inflation is a silent thief.
No wonder millions of Americans have started to build extra retirement resources using the tax deferral and flexible choices that annuities offer. Tax deferral means that you do not pay taxes on your investment's growth until you actually begin to withdraw your money. During the accumulation phase your assets are invested for potential growth. You can make a single, lump-sum investment or build assets with multiple payments over time. During the payout phase you begin receiving payments.