When it comes to planning for retirement, one can never be too diligent. After all, failing to plan for a secure financial future is equivalent to planning to fail. Therefore, one should familiarize themselves with the various financial tools available in order to optimize their savings as much as possible before retirement.

One of the best means to achieving this seemingly insurmountable feat is investing in an annuity. Regardless of the various misconceptions surrounding this investment tool, annuities are one of the few methods that will provide a regular infusion of cash with little to no additional fees.

With that in mind, let us delve deeper into the topic and discover the best annuities for retirement:

Immediate annuity

As you approach the end of your time in the workforce, you hopefully have a decent amount of money stowed away in your savings or in other investment accounts. It is at this time that you should consider withdrawing that money and investing in an immediate annuity, which would not only guarantee you an instant retirement income, but some peace of mind as well.

This form of annuity is rather straightforward. All the account owner must do is put down a lump sum in exchange for monthly checks that incur little to no fees. Of course, the worth of said checks is entirely dependent on how much the lump sum is. However, this payment in conjunction with any Social Security or pension plans, could be an excellent way of ensuring you will retire comfortably.

Deferred annuity

Also known as a longevity annuity, this method is excellent for older workers whose current savings may not carry them through the rest of their days. Therefore, payments to the owner of the account do not begin until they have reached a set age — which is typically around 80 years old — thus giving the money an opportunity to grow.

Alternatively, this account can be established by young workers who have already earned a considerable amount of money and do not intend to retire for some time. However, the only downside is that this money no longer grows with the owner of the account. Additionally, said owner will have to pay a larger sum of money to open such an account so early, along with any fees that may come with the account itself.

Regardless of which form of annuity one decides to purchase — or when they choose to purchase it — they should always meet with a certified financial planner first. After all, it is much better to be safe than sorry, especially in regards to one’s life savings.