The best annuity for retirement income is one that provides a guaranteed lifetime income stream. Immediate annuities start paying income right away. Deferred income annuities (DIAs) start paying income at a future date. Fixed indexed annuities with income riders provide both growth and guaranteed income.
Key Points
- Immediate annuity: starts paying income right away
- Deferred income annuity (DIA): starts paying income at a future date
- Fixed indexed annuity with income rider: provides both growth and guaranteed income
- Lifetime income: cannot outlive the income stream
- An independent agent can compare annuity options for retirement income