The term "returns" confuses people because it actually has two different meanings. Formally defined, an annuity is an annual payment made to an investor, usually on a monthly basis. However, in the investment world, the word refers to a deferred investment tax called tax-deferred annuity, or simply a retirement pension.
Thus, annuities can be a source of income, often for life. Or they may be a way investing for retirement with tax advantages and a break-called tax deferral. To make things even more confusing, you can invest in a pension retirement and accumulate money for retirement, and then opt to change money on your investment for a guaranteed monthly income for the rest of his life.
Now, reread that last sentence again. This is where I'm going to make things simple for you. I think pensions are a very good investment for those who are middle and older who want to spend the money for retirement. The advantage of tax deferral allows you to make your money grow without interruption in the payment of taxes income as it progresses, much as in a 401k or traditional IRA.
Truth be told, just invest and let your money grow. Then, when you retire and really need additional income, you can make a little money each year through "partial transfer". When taking the money, you may owe income taxes if the money represents the gain or interest, but that's okay. You will probably be in a lower tax category than when work and avoid taxes because the tax deferral advantage.
Do not be fooled by what he hears or reads. It is not necessary to exchange the money into your pension, an annuity, as I know, for an income stream for life. This is called having a choice of annuity. If you do this, you are telling the insurance company to keep their money and pay rent for life or some other defined period of time. Once such a decision, that money is no longer yours.
I was a financial consultant for years, and a lot of selling annuities. Most of my clients who bought them I clung to them, well into retirement. After death, the value of their income goes to your beneficiaries, usually your spouse. I never suggest that making a lease option, unless this is what they wanted, and really understand the consequences.
Max Value Insurance Group
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