Annuity

An annuity is a contract issued by financial institutions. Investors give a lump sum or regular payments to the institution in return for guaranteed steady income during retirement.

Annuities are primarily used as insurance for retirement savings and are common during the early phase of accumulation. Investors can choose how they'll pay in, and can also choose the terms and conditions for different payout types. Different types of annuities include fixed, variable, immediate, and deferred income.