Most people use the funds within an annuity as a source of income and support following their retirement. Your annuity will provide certain financial benefits to assist you in the future.
You can often carry the annuity alongside other accounts like 401(k) or 403(b) pensions. Therefore, you’ll create a larger financial cushion to use later.
No limits exist on how much you can invest in the annuity.
Money within your plan grows tax-deferred until you withdraw it. After that, you only pay regular income tax.
You can use this money for specific reasons, like a vacation or medical care. Or, you can receive a stream of income for the rest of your life. Think of it as a way to support yourself in old age.