In the past, Retirement Planning used to be a lot EASIER. Your Parents and Grandparents work on a company for their whole careers and upon retiring were paid a pension that continued to provide them an annual income every year of their retirement no matter how long they live.
Simple Isn't it?
However these days, Pensions are all but extinct as the burden of retirement planning has shifted from the Employers to the Employees. Now that they are responsible for their own retirements, many workers are looking for ways to recreate the annual income stream that traditional pensions provided without having to worry about running out of money at their retirement.
For these folks, annuities are an attractive option.
Annuities are an investment vehicles that generally offer safety from loss, while providing the ability to grow money which you'll annuitize at retirement. Basically turning what you've accumulated into a life long income stream...