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What Is a Retirement Annuity?

It provides guaranteed retirement income, but there are downsides to know about.

By Lyle Daly – Updated May 13, 2025 at 2:53PM | Fact-checked by Frank Bass

Key Points

  • Retirement annuities provide a guaranteed income, which is useful if you're unsure about the longevity of your savings.
  • Annuities come with fees such as administration and investment costs, affecting long-term returns.
  • Alternatives like Social Security or dividend stocks offer income with varying degrees of reliability.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

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