Annuities: Types and Examples
Whether you know it or not, you’ve at least heard the word“annuity” thrown around. Unconvinced? You’ve probably encountered annuities in the following instances: Defined benefit pensions. Defined benefit pensions guarantee specific benefits upon retirement. Employers can administer pensions in the form of a lump sum or lifetime annuity. Due to the fact that these are deposits to banks, the Federal Deposit Insurance Corporation (FDIC) supervises them instead of the Securities and Exchange Commission (SEC).Social security. Ultimately, Social Security is a government-backed annuity, much like an ...