The great retirement showdown: Fixed annuities or CDs — which pays off bigger?

A 5-year CD offers around 4.5%, safe and predictable. Fixed annuities grow tax-deferred and often beat CD rates over time. CDs give a lump sum. Annuities can pay lifetime income. Early withdrawal? CDs penalize a little, annuities more. Short-term security favors CDs. Long-term growth and guaranteed retirement income favor fixed annuities. Your choice depends on timeline, risk tolerance, and income needs. Mix both for safety and growth.