According to a CBS Money Watch report, a primary risk facing retirees is longevity. Securing a steady flow of cash that lasts as long as you do is critical. One means of making certain your money lasts is to purchase an annuity. Annuities are designed to accept and grow funds, and to later pay out a steady stream of money, often during retirement years. Purchasing an annuity requires faith that the insurer will be around long enough for you to collect on your investment, and it is a major commitment for the investor—back out and the penalties are severe. As there are hundreds of annuities on the market, picking the best one to meet your needs can be intimidating.
Top ranking goes to Minnesota Life. It offers a lifetime monthly payment of $744. The five-year payment is $1709. This annuity can be purchased at Annuity Advantage.
American National Life Insurance
Next on the list is American National Life Insurance with a monthly payout of $736 and a five-year payment of $1663. It can also be purchased at Annuity Advantage.
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Worth mentioning is USAA, which ranked at number five of the CBS Money Watch list. USAA gets the highest financial-soundness rating of all the raters and offers the most generous five-year payments. Monthly payments are $720 and the five-year payment is $1771. For more information visit the USAA site.