Fixed and variable annuities may be appealing for a number of reasons – especially guaranteed income. Yet many people find it hard to discern what may be good annuity options for them. And that’s as their fear of running out of retirement money remains strong.
Americans are more afraid of running out of money in retirement than they are of dying, according to a well-quoted statistic from Allianz Life. Of 3,000 people surveyed, 63% said they feared not having enough retirement money for life over leaving this Earth. That was the highest percentage of those who mentioned their financial concerns in the survey.
Fears like this are what drive Americans to look for dependable income-paying vehicles. When shopping around for income solutions, many investors find annuities to be of interest.
If you are considering an annuity for your portfolio, it’s important to understand everything before you make a decision. Knowing what a fixed versus variable annuity is, will be a good starting point.
Let’s look at some of those distinctions now.
