Annuities are a key part of the retirement system. In fact, Social Security is an annuity. But few of us even understand, let alone buy, these financial products. An annuity is an insurance contract where you, the purchaser, pay an insurance company to invest your money, allowing it to grow tax-deferred. An immediate annuity is a financial product sold by insurance companies that allows you to convert a lump sum of money into a stream of guaranteed income payments for life or a set period.
We identified the best 10 annuity companies in the United States based on their financial strength, availability, and customer service. These companies can provide a stable income during your retirement, helping you make an informed choice for your future. An average of three out of four plan sponsors plan to make a decision on in-plan annuity income solutions by the end of next year, showing the growing interest in these products.
Annuities are simple — and complicated. A 65-year-old man who invests $100,000 in an immediate annuity in February 2024 could get about $621 per month for life. This steady income can help cover expenses and provide peace of mind during retirement. Life insurance companies are the primary providers of annuities, offering different options to suit individual needs and goals.