variable annuity
A variable annuity is a type of investment product offered by insurance companies that allows individuals to save for retirement. It combines features of both insurance and investment, enabling policyholders to invest their premiums in various options, such as stocks and bonds. The value of the annuity can fluctuate based on the performance of these investments, hence the term "variable."
When the policyholder reaches retirement age, they can convert the accumulated value into regular income payments. This income can vary depending on the investment performance, making it a flexible option for those looking to grow their retirement savings while also having the potential for income during retirement.