What is the difference between 401K and Annuity?

If you have an employer or you work for a company, it is very likely that you can be a part of the company’s 401 (k) plan. This will help you create retirement funds that will allow you to live comfortably once you have retired. An annuity is a bit similar to the 401 (k) plan.

You will also give contributions to it so that you will have enough money by the time that you reach the age of retirement but the main difference is that annuity will make sure that you will have enough income for as long as you live. It will not get affected by the stock market and other factors like the 401 (k). it was mentioned earlier that you can get the 401 (k) from the employer while you can get the annuity when you get it from an insurance company.