Annuities are financial products that provide a steady stream of income, typically used for retirement. When you invest in an annuity, you pay a lump sum or make regular payments to an insurance company. In return, the company promises to pay you a certain amount of money over a specified period, which can be for a set number of years or for the rest of your life. There are different types of annuities, such as fixed and variable. A fixed annuity offers guaranteed payments, while a variable annuity allows you to invest in various options, potentially increasing your returns. Annuities can be a helpful way to ensure financial stability during retirement.