When Do Annuities Make Sense? 
Non-qualified tax deferred annuities can be a product consideration with savers and investors in a high effective tax bracket rate , or those seeking higher interest rates than bank rates or for those who have the risk tolerance for market returns , but are aware of the reality of market losses with variable annuities . An annuity can be a supplemental retirement income stream that can offer differing distribution options including lifetime annuitization . 