Because many companies have done away with defined benefit pension retirement income plans over the past decade or so, individuals must now shoulder more responsibility for making sure that they have a retirement income – and due to increased longevity, that income may need to last for many years.
Deferred annuities can do just that. There are typically several different deferred annuity income payout options available. In addition, there are also some tax-related advantages that can come with putting at least a portion of your savings into a deferred income annuity.
But it is also important to be careful before you commit to buying a deferred annuity. These products are not all exactly the same, so prior to moving forward, be sure that you discuss your options with an annuity specialist.