An Annuity is a financial product often used for retirement planning that provides a stream of income, usually over a set number of years or for the rest of your life. You typically buy an annuity from an insurance company by making either a one-time payment or a series of payments. In return, the annuity pays you back regularly in the future. Some annuities start payments right away, while others begin later. They can offer predictable income and may include options like guaranteed payouts, spousal benefits, or inflation protection. However, they can also come with fees, limited flexibility, and complex terms, so it’s important to fully understand how they work before committing.