Annuities

An annuity is a long-term insurance product that provides guaranteed income.

Annuities are a common source of retirement income because they provide a steady stream of payments at regular intervals and because their earnings grow tax-deferred until you withdraw funds. Most annuities also offer a death benefit that protects your original investment for your beneficiaries.

With people living longer and thus experiencing more market cycles throughout their lifetimes, annuities can help fill the gap between other sources of guaranteed and stable retirement income — such as pensions or Social Security — to cover essential expenses if needed.