Retirement may be a dream for many Americans, but many aren’t sure they’ll ever fully reach that goal.

Forty-seven percent of those who aren’t yet retired said they’re skeptical that they will ever be able to fully retire, according to a survey published in July for the insurance company Thrivent. What’s more, 64% of non-retirees say they’re more focused on their current finances than planning for the future, according to the survey that was conducted by Ipsos.

With many Americans living paycheck to paycheck, one of pre-retirees’ biggest fears is running out of money before death, according to a study by the insurance and asset management company Allianz Life. However, there are strategies to address that concern, even if saving more isn’t possible.

Annuities are one common way to guarantee income for life and secure your retirement. CNBC Select outlines what you need to know and the best products.

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Creating a secure retirement What is an annuity and how can it help in retirement?

Annuities are contracts sold by insurance companies that provide you with a guaranteed income stream. The type of annuity you buy determines when the contract begins paying out and how the funds grow over time.

There are three main types of annuities:

  • Fixed annuities: These offer a guaranteed, flat rate of return. While the rate is certain, you could miss out on the potential growth of a variable or indexed account.
  • Variable annuities: These accounts are invested in securities that fluctuate based on market performance.
  • Indexed annuities: Invests funds in a market index like the S&P 500 or the Dow Jones Industrial Average.

You can buy annuities that pay out right away, called immediate annuities, or deferred annuities that will start paying out in the future, like when you expect to retire. While all three types can be deferred annuities, immediate annuities are typically fixed annuities.

Who are annuities for?

Annuities can be appealing to some, but they aren’t the right fit for everyone.

After all, they do have some downsides, specifically in that some plans can charge high fees and have limited growth potential compared to investing on your own.

However, annuities can be good for those who are risk-averse, as they can provide peace of mind to customers who are worried about running out of money in retirement and who find it easier to budget with a predictable income.

Worried about outliving your retirement savings? Annuities can help.

Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.

Immediate annuities, fixed annuities, fixed indexed annuities, registered index-linked annuities

$10,000 for Athene Agility, Athene Protector, Athene MaxRate, Athene Ascent Pro and Athene Performance Elite

The best annuities for retirement

If you’re searching for annuities, you’ll likely need to work with a financial advisor who can help you choose the right contract and purchase the annuity.

However, knowing which annuities are available could help you narrow down options. CNBC Select reviewed more than a dozen annuity companies and found that a few stand out for their options, investment features and what they can offer certain individuals.

We like Allianz‘s variety of fixed indexed and index-linked annuities. We also like the availability of these annuities up to age 85, which is higher than many other annuity providers.

Allianz Life Annuities

  • Annuity types

    Allianz offers fixed indexed annuities and registered index-linked annuities (RILA), which rely on stock market returns to fuse growth with protection from market downturns.

  • Minimum deposit

    Minimum deposits range from $10,000 to $20,000.

  • Fees

    Allianz fixed annuities generally have no contract fees. The $50 annual contract fee for Allianz RILAs may be waived if the contract value is over $100,000

    There is also a combined administrative and mortality-and-expense risk fee that averages 1.25% a year and rider fees that can range from 0.70% and 1.25%

Pros

  • Available up to age 85
  • Variety of fixed index and index-linked annuities
  • Website offers details on offerings

Cons

  • Not all products are available in all states
  • Doesn’t offer fixed annuities that guarantee a certain return
  • Some options have a 10-year surrender period

We also like Athene’s low minimum initial deposits — you can fund your annuity with as little as $5,000.

Athene Annuities

  • Annuity types

    immediate annuities, fixed annuities, fixed indexed annuities, registered index-linked annuities

  • Minimum initial premium

    $10,000 for Athene Agility, Athene Protector, Athene MaxRate, Athene Ascent Pro and Athene Performance Elite

  • Fees

    Athene annuities do not have annual contract fees but riders fees can be between 0.40% and 1%.

For those wanting a fixed annuity, Gainbridge’s Save Traditional℠ Account and Save Retirement℠ Accounts both grow at a competitive fixed rate and don’t have any hidden fees.

Gainbridge Annuities

  • Annuity types

    Gainbridge Save℠ Annuity are fixed annuities

  • Fees

    Gainbridge annuities don’t have upfront sales charges or administrative fees. However, withdrawal fees and surrender charges may apply if you withdraw above 10% of your account’s value per year.

  • Minimum deposit

    The minimum deposit is $1,000 for all annuities across the platform

Pros

  • No sales or administrative fees
  • Fixed interest growth ideal for risk-adverse investors
  • Straightforward options and an easy-to-use website

Cons

  • Relatively few investment options
  • Subject to 10% early withdrawal penalty depending on product selection and age

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Why trust CNBC Select?

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every annuity review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.