Compare fixed, variable, indexed, and immediate annuities. Understand which type fits your retirement planning strategy best.

Annuities can help provide critical retirement income, but some are safer than others if there's a market downturn.

A $400,000 fixed annuity can offer reliable monthly income, but the payouts can vary due to a range of factors.

For example, if you buy a fixed annuity with a $100,000 premium and the insurer offers a 5% rate, you can expect $5,000 per year in payments. So, what's considered "good" right now?

Read the fine print before purchasing an annuity. For example, some fixed annuities may have a minimum guaranteed interest rate of 0%. So, while you won't lose the principal, your money will not grow.

For example, if your spouse dies and you elect to receive a lump-sum payment from their pension, you can then invest that money into an immediate fixed annuity.

What Are Annuities and How Do They Work? Put simply, an annuity is a contract that allows an investor to use present-day money to fund an ...

Similarly, a fixed index annuity, also known as indexed annuity or equity-indexed annuity, offers payment or returns based on the performance of a market index (the S&P 500, for example).

For example, a $100,000 fixed annuity with a guaranteed 5.00% APY would generate about $5,000 in interest the first year. Variable annuities.

A fixed indexed annuity is an insurance contract that provides an income stream in retirement. ... For example, if the company has a 2.5% administrative fee and your return is 7.5%, ...

An annuity is a way to get a guaranteed stream of income in retirement. But not all annuities are the same, and if you select the wrong one, it may cost more money than it has to. When it comes to ...

He cited the example in which a 65-year-old might receive $59,000 a year from a $750,000 annuity, versus an 80-year-old, who might receive $75,000 per year. The annuity's structure considers these ...