A fixed annuity is a type of insurance product that provides a guaranteed return on investment over a specified period. It allows individuals to make a lump-sum payment or a series of payments to an insurance company, which then pays back a fixed amount of interest over time. This makes it a popular choice for those seeking stable income during retirement. Fixed annuities are often used as part of a broader retirement strategy, alongside other options like 401(k)s or IRAs. They are considered low-risk investments since they offer predictable returns and are typically backed by the financial strength of the issuing insurance company.