Tax deferral benefits will allow your dollars to grow faster than a comparable taxable investment. An annuity can be an excellent tool for this purpose. Annuitized payouts if chosen, continue until death. If you work for a small company or are self-employed, you may not have access to a qualified plan. Annuities may be a way for you to supplement your Social Security income during retirement.
IRAs place a limit on contribution amounts.
Annuities do not have a limit on the amount of funds that you can invest in the annuity. IRAs require the holder to begin receiving minimum distributions at age 70 . Annuities do not have minimum distribution requirements. Annuities have certain disadvantages, as well. It is important to note that payments into an annuity aren't tax deductible.