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Annuity

by Skills.Money
in Blog, Personal Finance
Reading Time: 3 mins read
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An annuity refers to a type of financial contract or product bought by an individual from an insurance or financial services company with the promise of receiving regular payments later. A typical example of an annuity is a pension plan in which an individual pay during working years to receive an amount at a periodical period after retirement.

Annuities provide a secure, guaranteed income for a lifetime or a fixed term of your choice. They could be used as the foundation of your retirement plan.

Annuities are great because they provide guaranteed monthly income in retirement that doesn’t depend on how much money you have in your bank account or how long you live.

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