While we learn our ABCs at school and move on to more complicated subjects thereafter, sadly nothing in our education prepares us to save and invest. It is important that investments for retirement begin soon after one begins working. Retirement from work should not mean that you also retire from your current lifestyle. Carefully planned investments can help you maintain a similar living style even after retirement. There are many types of investments that one can consider and annuities are found to be ideal for those saving for their retired lives. An annuity is a contract with an insurance company that assures capital gains in return for payment of premium. In Ancient Rome citizens received a lifetime stipend or 'annua' for a one-time payment to the government. Today there are many types of annuities that offer varied terms and conditions but have a common purpose- to help create savings for retirement. Annuities have something to offer to every investor. Whether you have a lump sum amount that you wish to invest or want to make regular contributions there are different annuities that cater to the needs of all investors.

Annuities provide a higher rate of interest than traditional CDs and are more stable than investments in the stock market. As long as the insurance company is solvent the investor is guaranteed his savings. There are different types of annuities that cater to the needs of all types of investment. So whether you are an individual about to retire and have a large sum of money to invest or a young working professional who wants to gradually build up a retirement nest egg, annuities offer something to all investors. Annuities are tax deferred, which basically means that you don't pay tax on them until you are ready to withdraw money from the annuity or begin to receive income payments. Then too the gains are considered as income and taxed as such. Annuities such as immediate annuities and lifetime annuities provide a regular income to the retired person and can be invested in a one-time payment or by multiple contributions. If a person wants to postpone income payments to a later date, then deferred annuities are a good option. It is a good idea to invest in more than one annuity that will provide different types of benefits. For instance for the conservative investor the fixed annuity or the lifetime annuity may be preferable. One could also consider investing some part of their savings in equity-linked annuities that provide interest from the good performance of a specific stock index and protect it against any losses in the stock market. It is important to consult with an annuity broker who will be able to guide the individual into investing in annuities that best suit their financial situation.