An immediate annuity is a type of retirement income product that can provide a steady stream of income for the rest of your life. It is a contract between you and an insurance company, where you make a lump sum payment and the insurance company pays you a fixed amount of money each month for the rest of your life.

Immediate annuities can be a great way to supplement your retirement income and provide financial security in your later years. Here are some of the benefits of an immediate annuity:

1. Guaranteed Income: An immediate annuity provides a guaranteed income stream for the rest of your life. This means that you can count on a steady stream of income, regardless of what happens in the stock market or other investments.

2. Tax Advantages: Immediate annuities can provide tax advantages. Depending on the type of annuity you choose, you may be able to defer taxes on your income until you start receiving payments. This can help you save money in the long run.

3. Flexibility: Immediate annuities offer a variety of options to customize your income stream. You can choose the amount of your payments, the frequency of payments, and even the length of time you receive payments.

4. Peace of Mind: Knowing that you have a guaranteed income stream for the rest of your life can provide peace of mind. You won’t have to worry about outliving your money or having to rely on family or friends for financial support.

Immediate annuities can be a great way to supplement your retirement income and provide financial security in your later years. However, it’s important to understand the risks and benefits of an immediate annuity before making a decision. Be sure to talk to a financial advisor to determine if an immediate annuity is right for you.