A deferred annuity, on the other hand, allows you to accumulate funds over time before you start receiving payments. This option is generally more suitable for individuals who are still working and want to build up their retirement savings.<\/p>\n

Within these two broad categories, there are several variations, including:<\/p>\n

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• Fixed Annuities<\/strong>: These annuities offer a guaranteed rate of return, providing a predictable income stream.<\/li>\n
• Variable Annuities<\/strong>: Variable annuities are tied to the performance of underlying investments, such as mutual funds, offering the potential for higher returns but also exposing you to market risks.<\/li>\n
• Indexed Annuities<\/strong>: These annuities are linked to a specific market index, such as the S&P 500, and provide returns based on the index’s performance, subject to certain limits and caps.<\/li>\n<\/ul>\n

  <\/span>Why Consider an Annuity as a Senior?<\/strong><\/span><\/h2>\n

  <\/p>\n

  As you enter your retirement years, an annuity can offer several advantages that make it an attractive option for seniors over 60:<\/p>