Annuities

Annuities are financial products designed to provide a steady stream of income in retirement. They are typically sold by insurance companies and can be structured as either a fixed annuity, which provides a guaranteed interest rate and payment amount, or a variable annuity, which allows the policyholder to invest in a selection of investment options, with the potential for higher returns but also greater risk. Annuities can be purchased with a lump sum or through a series of payments, and the income payments can be either immediate or deferred to a later date.