Annuities

What Are Annuities — And Why They Matter for Your Financial Future

 

When planning for retirement, it’s easy to focus on saving—but just as important is figuring out how to turn those savings into reliable income. That’s where annuities come in.

 

What Is an Annuity?

 

An annuity is a financial product that provides a steady stream of income, typically during retirement. You make either a lump-sum payment or a series of payments to an insurance company, and in return, the company promises to pay you income either for a set period or for the rest of your life.

 

Why Are Annuities Important?

 

1. Guaranteed Income for Life

One of the biggest fears in retirement is outliving your money. Annuities offer peace of mind by providing income you can’t outlive—like a personal pension.

 

 

2. Protection Against Market Volatility

Some annuities offer fixed returns or income guarantees, shielding your retirement income from market downturns.

 

 

3. Customizable to Your Needs

Whether you want income now or later, protection for a spouse, or growth potential, there are annuity options designed to fit your goals.

 

 

4. Tax-Deferred Growth

Earnings inside an annuity grow tax-deferred, meaning you don’t pay taxes until you withdraw—helping your money grow faster over time.

 

 

5. Legacy and Estate Planning

Some annuities allow you to name beneficiaries, helping you pass on assets to loved ones efficiently.

 

 

 

Is an Annuity Right for You?

 

Annuities can be a powerful tool for those nearing or in retirement, especially if you’re looking for predictable income, protection from risk, or a way to supplement other retirement savings.

 

Plan Smarter. Live Confidently.

 

At O'Sullivan Insurance Agency, we help you understand how annuities fit into your overall retirement strategy. With the right guidance, you can build a plan that gives you income, security, and confidence for the years ahead.