How much you receive depends on several factors, including how much you put in, how much your annuity earns, and how long you keep your money in the annuity. Traditionally, annuities have been part of conservative, long-term retirement planning. Today, annuities offer more variety than ever. But no matter what they offer, all annuities have one extraordinary benefit in common the opportunity to enjoy an income you cannot outlive. Annuity payments can last for life.
Many people buy annuities as a source of income for retirement.
One of the biggest reasons people buy annuities is tax deferral. The fact is, when you start saving may be more important than how much you save. Karen decides she wants to begin now, save for 10 years, then stop. Bill thinks he's too young to worry about retirement and decides to delay saving until he turns 35, at which point he'll save until he turns 65. Chris decides to start saving now and until age 65.