Annuities provide guaranteed income in retirement, offer some opportunity for growth, and have certain tax advantages. To decide if an annuity is right for you, consider your health, risk tolerance, and other sources of guaranteed income, like Social Security or workplace pensions. “It provides retirement plan participants with a straightforward, cost-effective way to receive guaranteed lifetime income and supports the evolving needs of Americans as they prepare for retirement,” David Stinnett, Vanguard’s head of strategic retirement consulting, said in a written statement. Are Annuities a Smart Move for Retirement Income? Determine whether you can cover retirement expenses with other guaranteed income, like Social Security or a workplace pension.