Annuities are the Gift That Keeps on Giving

The unique feature of annuities is their ability to provide guaranteed income for life. People shop to fill a need. If security is that need, head straight for the annuities aisle. In particular, retirees can take the proceeds of their qualified company plans – 401(k)s, Simple IRAs and such – to the annuity store and buy immediate annuities. Employers can shop for immediate annuities to fund defined-benefit pension plans. Even governments – not ordinarily considered careful shoppers – should consider immediate annuities as alternatives to increasingly-costly retirement systems now supported by transfer payments.