A variable annuity is a personal account that millions of Americans are using to build their retirement nest eggs. In a variable annuity, you accumulate money by investing in portfolios which are similar to mutual funds except that they are tax deferred so your money grows faster.  Most variable annuities also offer a fixed interest rate account in combination with the variable investment options. When you are ready to retire, variable annuities offer a wide range of payout options, including payments that are guaranteed to continue for as long as you live, just like a pension.

Variable annuities also offer a number of valuable insurance benefits, including a death benefit that guarantees that the owner's beneficiaries will receive at least the amount of money that was invested, living benefits that provide principal protection during the owner's lifetime, and the right to elect annuity payments that are guaranteed to last for life.