An annuity is a contractual financial product sold by insurance carriers designed to accept and grow funds, which upon Annuitization, pay out a stream of payments for life. Contracts are divided into fixed, indexed, deferred or variable. Annuities are used primarily for retirement purposes.
People are living longer, which is good. But longevity creates new retirement challenges. How do you cover expenses during a 30+ year retirement without running out of money?