Annuities that turn your savings into retirement income

It's a contract with an insurance company that grows your money tax-deferred and can turn it into a steady income later, for a set time or for life.

A fixed annuity pays a set rate. A fixed indexed annuity credits interest based on a market index, up to a cap, and protects your principal from market losses. We'll compare current rates for both.

A 401k is where you save while you work, often with an employer match. An annuity is often used near or in retirement to protect savings and create income. Many people roll part of a 401k into an annuity when they retire.

Most annuities let you take out a portion each year without a charge. Larger early withdrawals usually have surrender charges for the first several years, and withdrawals before age 59½ may have a tax penalty.