What Are Some Benefits of a Retirement Annuity Fund?

What Are Some Benefits of a Retirement Annuity Fund?

One benefit of a retirement annuity fund is that it is tax-deferred, meaning that contributed funds and investment gains are not taxed until they are withdrawn, according to Investor.gov. Another benefit to a retirement annuity fund is that it has no yearly maximum contribution limit, as reported by CNN Money.

The customizable nature of annuity funds can also be beneficial. Depending on one's preference, the annuity can be set up to generate either a fixed or variable amount, which can be distributed in one lump-sum payment, over a set period of time or until death, according to CNN Money.

Another advantage of a retirement annuity fund is that many funds allow the holder to designate a beneficiary to receive remaining benefits should the holder pass away, according to Investor.gov.