Annuity Calculator

An annuity is a financial product that provides a stream of payments to an individual over a period of time, typically used as a source of retirement income. There are two main phases: the accumulation phase (when premiums are paid and the account grows) and the annuitization phase (when periodic payments begin).

Immediate annuities begin payments shortly after a lump sum is paid, while deferred annuities start payments at a future date. Fixed annuities guarantee a specific payment amount, while variable annuities have payments that vary based on the performance of underlying investments.

Annuities can provide guaranteed lifetime income, which can be valuable for retirees concerned about outliving their savings. However, they often come with higher fees, less liquidity, and complexity compared to other retirement investment options.