An annuity is a contract issued by an insurance company that converts a lump sum or series of premiums into either tax-deferred growth, guaranteed lifetime income, or both. The main types are MYGA (multi-year guaranteed), fixed indexed, registered index-linked (RILA), variable, and immediate (SPIA).

Are annuities a good investment for retirees?

Annuities are not primarily an investment - they are an insurance product designed to transfer longevity risk and rate risk to the insurance carrier. They make sense for retirees who want guaranteed income, predictable yield, or downside protection on a portion of retirement assets.

What is the safest type of annuity?

A multi-year guaranteed annuity (MYGA) from an A-rated insurance carrier is generally considered the safest type. It guarantees a fixed interest rate for a set term with no market exposure, and is protected by state guaranty associations up to coverage limits.

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Annuities Explained: Types, Rates & Buying Guides (2026)

Q: Are annuities FDIC insured?

No. Annuities are insurance contracts, not bank deposits, and are not FDIC insured. They are backed by the issuing insurance carrier and protected by state guaranty associations up to applicable coverage limits, typically $250,000 of present value.

Everything you need to know about annuities — from basic concepts to advanced strategies. Compare types, carriers, and find the right product for your retirement income goals.

Annuities: The Complete 2026 Guide

An annuity is a contract with an insurance company that exchanges a lump sum or a series of payments for guaranteed future income. We cover every kind of annuity sold in the U.S., from a 3-year MYGA earning 5.50% to a deferred income annuity that pays at age 80, plus the comparisons, riders, fees, and tax rules you need to understand before you buy. This page is the index. Use it to find the article you need, or start from the top.

Start Here: Annuity Basics

What Is an Annuity? The Complete Guide (2026) — the foundational article that defines what an annuity is, how it works, and the four product types
Annuity 101: Everything You Need to Know to Get Started — a longer walkthrough of accumulation, payout, and contract mechanics
What Is a Retirement Annuity? — how annuities fit into a retirement income plan
Are Annuities Safe? What the Guarantees Really Mean
Annuity Pros and Cons: An Honest Assessment

Product Types

The four primary annuity contract types differ in how they credit interest, who carries the investment risk, and how the income is calculated. Pick the type that matches your goal:

Fixed Annuity — guaranteed interest rate for a set term, principal protected
MYGA (Multi-Year Guaranteed Annuity) — the CD-style fixed annuity with a multi-year locked rate
Fixed Index Annuity (FIA) — principal-protected with index-linked upside
Variable Annuity (VA) — subaccount-based, market exposure with optional riders
RILA (Registered Index-Linked Annuity) — buffered index annuity, partial market protection
SPIA (Single Premium Immediate Annuity) — income that starts within 12 months
DIA (Deferred Income Annuity) — income that starts later, often used as longevity insurance

Annuity Comparisons

Side-by-side analyses of annuities versus the alternatives most retirees consider:

Riders, Features & Contract Mechanics

The fine print that separates a strong annuity from a mediocre one:

Annuity Fees, Costs & Commissions

Tax Rules

Annuities are taxed on a tax-deferred basis during accumulation and as ordinary income on the way out. Specifics depend on whether the contract is qualified, who owns it, and how income is taken:

Best-of Annuity Lists

Safety, Protection & Regulation

Already Have an Annuity?

If you already own a contract, these guides cover the moves you can make at maturity, during the surrender period, and at distribution:

For company-level due diligence, browse our annuity carrier reviews. To shop the actual rates available right now, see current annuity rates. To start fresh, our walkthrough on how to buy an annuity without getting ripped off covers the conversation you should have with any agent before you sign anything.