"Guaranteed lifetime income: This is the single biggest advantage of selecting an annuity. You can buy an annuity that's guaranteed to last for a set period of time, such as 10 or 20 years. Or, you can select an annuity guaranteed to last either for the duration of your own life or for the duration of a joint life. For example, you could buy an annuity that provides income for as long as you and your spouse live."
"Tax-advantaged investment: When your annuity is in the growth or accumulation phase, you can benefit from tax-free growth. And, there are no contribution limits, unlike the limits that apply to many other kinds of retirement plans. On the other hand, if you opt for a non-qualified annuity, you can also collect some of your money tax-free in retirement since you aren't taxed"
Many baby boomers are reaching retirement age and need a plan for retirement income. Potential income sources include Social Security, stocks, bonds, and annuities. Annuities can offer guaranteed income for a set period, lifetime, or joint lives, preventing the risk of running out of money. Lifetime annuities provide reassurance and peace of mind for those worried about shortfalls. During the growth or accumulation phase, annuities benefit from tax-deferred growth and typically have no contribution limits. Some non-qualified annuities also allow collecting some money tax-free in retirement. Annuities have both advantages and disadvantages to consider.
Read at 24/7 Wall St.
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