What is an annuity and is it worth the investment?

Date:2023-01-14
An annuity is a type of financial product that pays out a steady stream of income or principal over a specified period of time—usually after retirement. It is an investment of savings with an insurance company where the investor pays a fixed amount of money at regular intervals in exchange for long-term regular income payments. Annuities can provide a source of "guaranteed income" in retirement, as well as other potential benefits like tax deductions and potential for growth. Whether an annuity is a worthwhile investment for an individual depends on their financial goals and circumstances. Generally, annuities are best suited for investors with long-term goals such as retirement.
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