In the wake of steep stock market declines in 2008, American workers have begun to doubt whether their tax-deferred retirement plans will be able to generate the income they will need during their retirement years. In fact, only 42% of participants in a 2009 survey still expect their 401(k), IRA, and other retirement savings plans to be a major source of retirement income — the lowest measure since the annual survey began.

If you are concerned about having a stable source of retirement income, a fixed annuity may just fit the bill.

Income Now or Later

A fixed annuity is a contract with an insurance company that guarantees a fixed rate of return during the life of the contract. Payouts can be structured to provide a guaranteed income that will last for a specific period or for life. There are two basic types of fixed annuities from which to choose.

An immediate fixed annuity

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