Indexed annuities can be an excellent tool for retirees and pre-retirees who want market-linked growth without direct market risk. They work best as part of a diversified retirement income strategy. They are particularly well-suited for the medium-term savings bucket — money you don’t need immediately but want growing without the risk of a market downturn wiping out a portion of your balance at an inopportune time. They are not ideal for the money you may need during the surrender period, or for those whose primary need is guaranteed current income.