Variable annuities were introduced in the United States in the mid-1950s. They were initially designed as a way to provide individuals with a tax-deferred method of saving for retirement. Variable annuities differ from traditional fixed annuities in that the value of the annuity is tied to the performance of underlying investment options, such as mutual funds. This means that the value of a variable annuity can fluctuate based on the performance of the investments. Variable annuities also offer a range of optional features, such as guaranteed minimum income benefits and death benefits. These features can provide additional protection and flexibility for annuity holders. Overall, variable annuities have become a popular investment and retirement planning tool, offering individuals the potential for growth and income in retirement.