By Donn J. Sinclair MBA September 1, 2018
Fixed annuities are essentially fixed rate savings/investments issued by insurance companies. Fixed annuities pay guaranteed rates of interest, in many cases higher than available from other financial institutions.
Fixed annuities can be deferred or immediate. The deferred variety accumulate regular rates of interest and the immediate kind make fixed payments – determined by your age and size of your annuity – during retirement.
The convenience and predictability of a set payout makes a fixed annuity a popular option for retirees who want a known income stream to supplement their other retirement income.