As stated in an article in the Latah Eagle, “Income annuities can help fill the retirement income gap.” Many retirees will have a fixed stream of income from 401(k)’s, pensions, or promised Social Security payments. Unfortunately, all too often these planned sources don’t cover retirees necessary expenses. In order to bridge the disparity between the amount of retirement income you are set to receive and the amount you actually need, look towards an annuity. Unlike savings or other investment options where you are unsure if they will last as long as you need them, an annuity can pay you for your entire lifetime.
By purchasing an annuity with an up front payment to an insurance company, you will receive payments at a predetermined start date that will last for the rest of your life. Adding that to other retirement income can make for a comfortable future free of financial concerns. You can even add a rider to your policy that will continue payments to your spouse throughout their lifetime. Taxes are assessed depending on whether or not the money to purchase the annuity has already been taxed or not. Be sure to check into all of the options available for your retirement to see if an annuity is right for you.