If you're already maxing out an IRA or 401(k), an annuity is another way to grow money tax-deferred — you don't pay taxes on earnings until you withdraw them. Annuities can also serve as a reliable income source before or during retirement.

Extra income needs
Fill the gap between early retirement and Social Security, or fund the more active early years of retirement.

Retirement needs
Help cover essential expenses not met by Social Security, pensions, or personal savings.

Non-retirement needs
Provide reliable, regular income for things like college expenses.

Not all annuities work the same way. The right type depends on when you need income and how you want your money to grow.

Deferred annuities - tax deferral, growth focused, lump sum or income later

Income annuities - guaranteed lifetime income now or later

Single premium immediate annuities (SPIA) - guaranteed income stream, lifetime or specific period