Introduction to Fixed Annuities

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Learn what it means for an annuity to be fixed. Also learn some strategic considerations for investing in fixed annuities.

What you will learn

  • What Is a Fixed Annuity?
  • How Is an Annuity Fixed?
  • Considerations for Fixed Annuities

What do you know?

Introduction to Fixed Annuities

Annuities are a time-honored investment designed to provide a guaranteed income for retirement. Annuities are the only investment vehicle that is allowed to claim that it can provide a guaranteed income that the annuitant cannot outlive. This is because an annuity, like life insurance, is operated by an insurance company and follows the same actuarial principles.

Annuities may pay a fixed amount of income periodically for life or a variable amount depending upon the type of contract. Fixed annuities are the oldest form of annuity and easiest to understand. If you think that you may need a fixed income for life (or a certain period of time), then you should consider a fixed annuity as part of your financial planning.