Definition
An insurance contract that converts a lump sum or stream of payments into guaranteed income, typically used to supplement retirement income.
Related Retirement Planning terms
401(k)
An employer-sponsored retirement plan that lets workers contribute pre-tax dolla…
IRA (Individual Retirement Account)
A tax-advantaged investing account anyone with earned income can open, used to s…
Roth IRA
An IRA funded with after-tax dollars, so qualified withdrawals in retirement — i…
RMD (Required Minimum Distribution)
The minimum amount the IRS requires you to withdraw annually from most retiremen…
Social Security
A U.S. federal program that provides retirement, disability, and survivor benefi…
Pension
An employer-funded retirement plan that pays a defined benefit — typically a per…
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