Annuities are like having insurance on your retirement. After investing and building your 401(k), IRA, Roth IRA, or other such investment products, you need to look at insuring those funds against losses during your senior years.
By moving those funds or some portion of them to an Annuity, you are placing a guarantee on the principal. The annuity provides a lifetime income stream that you are not capable of outliving. Additionally, you still have the potential to earn interest on the principal.