An annuity is a contract between you and an insurance company to provide a reliable income stream for life, the opportunity to grow your money tax-deferred, and which can offer protection for your retirement income stream.

Annuities have two basic components: Accumulation and Income. During your years before reitrement, invest in an annuity (either muliple payments over the years or single payment). The annuity grows/accumulates tax deferred with competitive interst rates. Then in retirement (at the time you choose), you can set it up for an income stream that you cannot outlive, even if you outlive the cash value.