Guide to Annuities: Types, Payouts and Expert Q A Annuities provide a way to potentially accumulate wealth, defer taxes, preserve principal and ensure a reliable income stream in retirement Annuities offer retirees the opportunity to transfer the risk of their retirement income to an insurance company
What are annuities and how do they work? - Fidelity Investments What is an annuity? At its most basic level, an annuity is a contract between you and an insurance company that shifts a portion of risk away from you and onto the company There are 2 basic types of annuities: Income annuities can offer a payout for life or a set period of time in return for a lump-sum investment They can also be a boost to the conservative part of your portfolio by