You’re in good company if you saw this piece’s headline and are unsure about how an annuity works, let alone how it might impact your taxes. Despite being a potentially valuable retirement tool, data show annuities remain a mystery to many, including those approaching retirement age.
The American College of Financial Services recently found that annuities were the least understood retirement product among adults ages 50 to 75. That’s despite nearly half of working adults in that age group worrying about running out of money in retirement, according to the Life Insurance Marketing and Research Association (LIMRA).
