Annuities are financial products designed to provide a guaranteed stream of income over a specified period, commonly used as retirement income solutions. With an annuity, an individual or entity makes a lump-sum payment or series of payments to an insurance company.

In return, they receive regular income payments, either immediately (immediate annuity) or at a later date (deferred annuity). Annuities can offer fixed or variable income, depending on the type chosen, and may include options for inflation protection, survivor benefits, and flexible payment terms. They are often favored for their ability to provide financial stability and predictable income during retirement, making them a popular choice among individuals seeking reliable retirement income streams.