Annuity

An annuity is a financial product that provides a series of regular payments to the annuitant (the person who purchases the annuity) over a certain period of time, typically for the rest of their life. An annuity is often used as a retirement income stream to supplement other retirement savings.

There are different types of annuities, including fixed annuities, variable annuities, and indexed annuities. In a fixed annuity, the annuitant receives a fixed payment each period, usually monthly or annually, which is predetermined at the time the annuity is purchased. In a variable annuity, the payment amount can vary depending on the performance of the underlying investments. In an indexed annuity, the payment amount is tied to a specific stock market index.

Annuities can be purchased through insurance companies, and are often sold as a way to provide guaranteed income in retirement. However, they also come with fees and other costs, and may not be suitable for everyone's financial situation.