Among the reasons to consider an immediate annuity are the following: 

• An immediate annuity is a financial vehicle that can provide guaranteed income for life. 
• The income payments you receive can supplement your other income sources, such as Social Security and pension payments, which may not provide enough income by themselves. 
• You choose how often to receive your income payments whether monthly, quarterly, semi-annually or annually. 
• You pay income taxes only as you receive your payments. When you receive income payments, you will be taxed on the portion of the payments that is earnings. The portion that is contributions, which represents your initial deposit made with money that had already been taxed, is not taxable. 
• You can put a system in place to help lessen your financial worries. Financial management can be a burden in your retirement years. Because you don’t know how long you’ll live, it’s hard to be sure your resources will last as long as you need them. If you withdraw too much of your nest egg, your future income can suffer or you may run out of money entirely. If you are too thrifty when it comes to spending your nest egg, you might not be able to maintain your current lifestyle. Fixed immediate annuities can help you determine your periodic income as they guarantee a fixed rate and fixed payments. Variable immediate annuities will offer income payments, although they will vary according to the performance of the selected subaccounts.