Most people wait till retirement is near to decide about how to save enough for old age. This is a terrible approach and can lead to disaster. You need to start saving from now to guarantee a good life after retirement. Saving options like certificates of deposits or CDs are not viable for they require direct management. You might prefer a hassle free retirement spent mostly playing golf or traveling to exotic places. You deserve a peaceful and enjoyable old age after having spent so many years slaving to fulfill your obligations. Retirement is the time for enjoyment and spending quality time with oneself and one’s family. To make your retirement smooth it is essential to save now. Annuities are a good savings option. Annuity is basically a type of insurance that provides you with a cash flow during retirement years. Annuity is a kind of investment that you make payment to. You can make a single time payment in a lump sum or regular payments. In future your investment will start to make payments to you. Once again you can choose to take payment at one time, in monthly or quarterly basis. Annuity is basically used to generate an income in the retirement years. How much money you get as payment depends on a variety of factors. The most important is the amount you originally decided to invest. Another important factor that determines the amount of payment is the time period for which you require payment; do you want payment for a lifetime or a fixed period of time? The first thing you need to decide before buying annuity is what kind of annuity you require. There are fixed annuities and variable annuities. In case of fixed annuity the amount paid out is fixed or the amount increases according to a fixed percentage. So here you are guaranteed payment but the amount of pay will not change. Variable annuity is the kind of annuity where the amount paid out changes depending on various factors. In this type of annuity your money is invested and depending on the success or failure of the investment the payment amount varies. If you believe in capital gains through stock investment this is a good option for you. In annuity your premium is always safe no matter what happens to the stock market. A minimum income is guaranteed irrespective of market fluctuations. So here you have the option of increasing your earnings considerably without the risk of loosing all your money. There are also immediate annuities where you only make a single time investment and start getting payments immediately. This is great for people planning an early retirement. Deferred annuities are those where you have to wait a while before payments begin. Here your taxes are also deferred as you do not need to pay taxes on interest accumulated till the time of withdrawal. If you are confused about deciding the best annuity plan for you then visit totalreturnannuities.com. This site will help you make your choice. You will find detailed information regarding the meaning of annuity, different types of annuities available and the benefits of each. Totalreturnannuities.com also has the added advantage of annuity calculator where you can calculate your prospective returns before making the final decision.