An annuity is a financial product that provides a consistent stream of payments to the individual who purchases it, often used as a retirement income strategy. It can come in various forms, offering options for immediate or deferred payouts, fixed or variable interest rates, and lifetime or joint beneficiary provisions.
It is an agreed sum payable to an investor at specified intervals over a period or in perpetuity, as in the case of interest payment in annuity bonds.
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