Choosing Immediate or Deferred Annuity for Retirement

An annuity is a way to turn a big savings pile into a steady paycheck for the rest of your life.

There are two kinds: immediate annuities give you money right away, while deferred annuities let your money grow for a few years before you start receiving payments.

If you’re close to retiring, an immediate annuity is usually best because you need money soon.

If you’re younger and have more time, a deferred annuity can grow your savings and give you a larger monthly amount later.

Both plans lock your money in, so you can’t take it out easily, and they may not keep up with inflation, so it’s important to think about your age, how long you’ll need the money, and whether you want a guaranteed income for life.