Annuities can be a valuable addition to retirement planning for people at nearly every stage of life. If one of these life situations sounds familiar, you may want to consider an annuity.

Getting a head start
An annuity can help families get a head start on retirement planning, and shift some of their tax burden to retirement years. But consider your immediate/short-term needs first (see "Annuities are not for everyone").

Need to catch up
The demands of saving for college or a home, or helping to support aging parents may have limited what you could invest. Unlimited contributions and tax deferral can accelerate your investment plan, and may help you catch up with your retirement goals.

Close to retirement
Your money has to last for the rest of your life, so consider your needs carefully. Think about how much income you'll need when you stop working, and make a plan. An annuity can help you manage income and taxes while your money keeps growing.

Already retired
If you're living on income from securities, you may be paying taxes on all the dividends and interest you receive each year, whether you need the money or not. An annuity can help control when you pay taxes and help lower the taxes on your Social Security benefits. If you're concerned about outliving your money, you could choose to receive a guaranteed income for life (based on your contract's value).

Self-employed or small business owner
Without the advantage of an employer-sponsored 401(k) plan, personal investment for retirement is especially important for this group.