Experts agree that Americans are living longer. Therefore, they are spending more time in retirement, with the average American enjoying 18 years of life after work. How does one plan for these years and make sure their nest egg will adequately provide for this time? The answer may be with fixed annuities. Safe and risk-free, fixed annuities can help provide you or your loved one with a comfortable retirement.

An annuity is a contract issued by an insurance company that allows you to set aside money with a fixed interest rate and have it grow on a tax-deferred basis for future use. When you are ready to retire, you withdraw the money as needed, or you can turn the value of your annuity into a regularly paid income that is guaranteed to last the remainder of your life (and for some or all of your loved one's life too, if applicable).

Earnings from the annuity grow on a tax-deferred basis, which means you don't have to pay taxes on the earnings until you withdraw them. This allows your money to work for you without being taxed annually.

According to experts, you will need to replace 70%-90% of your pre-retirement income to maintain your current standard of living. So, if you earn $50,000 a year before retirement, you will need to set aside $35,000 to $45,000 for each retired year. Keep in mind that you also need to account for the impact of inflation in your planning.

You may also want to look into an equity-index annuity. The equity-index annuity's interest rates are directly linked to the performance of an index, like the S&P 500. When the market is up, you benefit. If it drops, your interest rate will never fall below the equity-index annuity's guaranteed minimum,thus you are protected.

It is best to discuss annuities with your personal insurance agent who can help find a plan that suits your needs andassist you inplanning for a comfortable retirement, making all those years of hard work pay off.

Liquidated earnings are subject to ordinary income tax, may be subject to surrender charges and, if taken prior to age 59 1⁄2, may be subject to a 10% federal income tax penalty.

Guarantees and payment of lifetime income are contingent on the claims paying ability of the issuing insurance company.

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