Annuities: Creating Predictable Income in Retirement

Annuities are financial instruments designed to provide a guaranteed income stream, typically during retirement.

They address one of the most significant risks retirees face: outliving their assets.

Annuities can be structured in various ways:

• Immediate vs. deferred

• Fixed vs. variable

• Lifetime income options

Their primary function is stability, not growth. While other investments focus on accumulation, annuities focus on distribution and predictability.

They can also serve as a hedge against market volatility by providing income that is not affected by market fluctuations.

When used appropriately, annuities complement other retirement assets by ensuring a consistent baseline income.

Conclusion
Annuities are not designed to build wealth—they are designed to sustain it.