What is a fixed annuity?

You hand over a lump sum, the insurer credits a declared rate for a defined period, and the growth is tax-deferred until you withdraw. At the end of the term you can take the money, renew, or turn the balance into an income stream for a fixed number of years or for life.

The trade-offs are liquidity and inflation. Withdrawing more than the contract allows before the term ends triggers a surrender charge, and a fixed payment that looked comfortable at sixty-five buys less at eighty. Annuities suit a specific job — covering essential expenses with a guaranteed floor — and are a poor substitute for a general savings plan.

An estimate for planning, not a quote. Medicare and the Marketplace set your real figures.