What Are Annuities?
An annuity is an insurance contract that helps people create a steady income stream during retirement. Social Security benefits, Roth IRA, and 401k withdrawals can be great ways to save for retirement, but sometimes they aren’t enough to cover all of your living expenses. An annuity can help fill in the gap by providing regular payments for a certain period of time, or even for the rest of your life. This can be especially helpful if you’re worried about running out of money as you get older.
Annuities are also important because they can help pay for things like healthcare costs in retirement. As people age, healthcare expenses often increase, and having a reliable income from an annuity can make it easier to pay for doctors’ visits, medications, and other healthcare needs. While Social Security and retirement accounts are useful, they may not always be enough to cover these rising costs. By adding an annuity to your retirement plan, you can feel more secure knowing you have a predictable source of income to cover your needs in retirement.
