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The primary benefits of putting some of your savings into an annuity include:
- Tax deferral on growth
- Various income or death benefit guarantees that the annuity may provide (this can vary greatly by annuity, though, so read the details carefully!)

The primary disadvantages include:
- All growth will be taxed in the future at ordinary income tax rates (no capital gains for the growth in your equities in an annuity)
- Withdrawals will be taxed as gains first, to the extent that you have any growth
- Gains will be subject to a 10% early withdrawal penalty if taken before age 59 1/2, unless one of the other limited exceptions applies
- The annuity may have its own surrender/liquidity charges for the first several years if you want to move your money out (this depends on the annuity)

Overall, an annuity can be an appropriate vehicle for savings, but it's absolutely crucial to understand the details of the annuity that you're buying. There can be a very broad range, from fixed, to variable, to equity-indexed, that provide different risk/return characteristics. Many annuities can be very expensive, and if the costs are going towards guarantees or features that you don't really need, then they may be a poor value for you.

Beyond that, it's worth noting that generally you should be focusing on maximizing your traditional retirement savings vehicles before using an annuity as a savings vehicle - for example, traditional and Roth IRAs, 401(k) plans, self-employed retirement plans (if applicable), etc. It is possible to own an annuity INSIDE one of these retirement accounts as well, but that should ONLY ever be considered specifically if you want to purchase the income or death benefit guarantees of the annuity and feel that the cost is worthwhile.

And in either case, be certain that you understand what the investment options of the annuity are, how they work, what the risks are, and whether you can obtain similar investments in an alternative vehicle at a lower cost. Again, the expense of annuities can be worthwhile if the guarantees and features are really of value to you; but make sure they really ARE of value to you!

I hope that helps a little!