There are several different types of annuities for you to choose from in today's market.

For example, some employers offer group annuities to their employees as a means of establishing or adding to your retirement plan. In some cases the contract is paid by the employer, in others it's paid by you the employee, and sometimes it's split by both. Employer group annuities may offer fewer choices because they're negotiated by your boss or parent company, but sometimes they offer tax advantages you can't get with individual annuities.

Individual annuities are annuities you choose for yourself. They'll offer a lot more choices for you to make, and they can be tailored to suit your needs both today and in the future.

One option is an indexed annuity, which is based on the success of a specific stock or bond. Indexed annuities offer buyers the benefits of a guaranteed minimum interest rate, and the potential to make more money based on the success of the stock or bond.

IRAs, or Individual Retirement Accounts, are a very common means of establishing a secure retirement fund. Just remember that although banks and other financial institutions are able to sell IRAs, only an insurance company can offer you what's called "annuitization", or payments for life.

Roth IRAs are Individual Retirement Accounts that offer more flexible options and special tax incentives. However, Roth IRAs are available only to those within certain income brackets.

A variable annuity, sometimes called a multi-funded annuity, is based on the investments made by the insurance company. If you choose this type of annuity you might not get a guaranteed payment amount, and your payout will depend on the success of the investments made by the insurance company.