Retirement

Annuity

A contract with an insurer that converts a sum of money into a stream of income, often for life.

What does annuity mean?

You pay a premium and the insurer pays you back over time — immediately or after a growth period. Annuities remove longevity and market risk in exchange for giving up control of the principal, and fees vary widely by type.

Put it to use

Immediate Annuity Calculator Estimate what your monthly payments might be from an immediate annuity. Fixed Annuity Calculator A fixed annuity can provide a secure, tax-deferred investment. Use this calculator to see how a fixed annuity might fit into your retirement plan.

Related terms

Pension Social Security

All glossary terms