Indexed Annuity vs Variable Annuity: Which Annuity Type Provides Better Retirement Income?

Indexed annuities offer principal protection with growth linked to a market index, capped but never negative. Variable annuities invest directly in sub-accounts with unlimited upside but full market risk and typically higher fees. Indexed annuities suit conservative investors wanting growth without loss risk. Variable annuities suit those comfortable with volatility for potentially higher returns.