Answer:
Step-by-step explanation:
Annuities may be more attractive to consumers compared to savings accounts because they offer the potential for higher returns and guaranteed income in retirement.
Higher Returns: Annuities can provide the opportunity for higher returns compared to savings accounts. They allow individuals to invest in different assets, potentially earning more over time.
Tax Advantages: Annuities offer tax advantages, such as tax-deferred growth. This means individuals don't have to pay taxes on earnings until they withdraw the funds, allowing for faster growth compared to taxable savings accounts.
Guaranteed Income: Unlike savings accounts, annuities can provide a guaranteed income stream in retirement. They offer regular payments for a fixed period or even for life, providing financial security and predictable income.
Long-Term Planning: Annuities are designed for long-term financial planning, especially for retirement. They help individuals save and invest systematically, ensuring a steady income during their later years.
It's important to consider individual financial goals and circumstances when deciding between annuities and savings accounts. Seeking advice from a financial advisor can help make an informed decision.