Q: I am a 66-year old, single female with about $473,000 in IRAs and 401(k)s. About one-third-plus are in targeted retirement funds. I have been quite satisfied with this. I am thinking of retiring in a year or two. I recently met with a financial adviser who tried to sell me a variable annuity. … I became more confused as his speech and demeanor became more pressured. … What are your thoughts on variable annuities?

A: No matter what the financial product, you should never, ever feel pressured to buy. That's especially true when it comes to evaluating a complicated investment like a variable annuity. Period. End of story.

That said, annuities are worth learning about. In essence, annuities are a product targeted at addressing the biggest financial concern most of us face: Outliving our money. A key question for anyone nearing retirement with an IRA, 401(k) and comparable defined contribution plan is whether to annuitize some of the savings. Annuities aren't simple.

The product I'm most comfortable recommending to research is a life annuity, also known as an immediate annuity or an income annuity. With a single-premium immediate annuity, you invest a sum of money and, in return, you receive a monthly, quarterly or annual income on the investment for the rest of your life. You can't outlive the investment or the income.

You'll want inflation-protected annuities even though the cost of the inflation hedge is a lower income. You'll want to go with a company with a strong balance sheet and long-term record. A life annuity isn't for everyone — far from it. Social Security is a sufficient annuity for many people. You'll want to shop around since your stream of income depends on how much you invest, your age, the interest rate and other factors. (A major drawback now is that interest rates are so low.)

Even if an annuity turns out to be a sensible step for you, you should decide how much of your savings to annuitize. You'll want to keep some savings readily available to deal with unexpected spending.

The lure of variable annuities is the option of tax-deferred investing in mutual fund-like accounts, including stocks, along with a death benefit. I'm skeptical of variable annuities for most people because fees are too high, the products are too opaque and the market is too complex for comfort. Besides, you already have a good tax-sheltered, relatively low cost retirement savings plan. If I were you, I'd keep researching my options.

Chris Farrell is economics editor for "Marketplace Money." His e-mail is cfarrell@mpr.org.