An annuity is a financial product that provides a stream of income payments to an individual in exchange for a lump-sum payment or a series of payments over time. Annuities can be a useful tool for retirement planning, as they offer several benefits, including:

1. Guaranteed income: Annuities can provide a predictable and guaranteed stream of income during retirement. This can help retirees plan and budget for their expenses and avoid the risk of running out of money.

2. Tax-deferred growth: Annuities can grow tax-deferred, which means that the earnings are not subject to taxes until they are withdrawn. This can be especially beneficial for retirees who may be in a lower tax bracket than they were during their working years.

3. Protection against market volatility: Annuities can provide protection against market volatility, as the income payments are not affected by changes in the stock market or interest rates. This can provide peace of mind for retirees who are concerned about the risks of investing.

4. Flexibility: Annuities can be tailored to meet the needs of individual retirees. There are different types of annuities, including fixed, variable, and indexed annuities, each with their own features and benefits. Retirees can choose the type of annuity that best fits their goals and risk tolerance.

5. Legacy planning: Annuities can also provide a way to pass on assets to heirs or beneficiaries. Some annuities offer death benefits that allow beneficiaries to receive a lump-sum payment or continue to receive income payments after the annuity holder passes away.

Overall, annuities can be a valuable tool for retirees who are looking for a secure and predictable source of income during retirement. However, it's important to carefully consider the costs and benefits of annuities and to work with a financial professional to determine if they are a good fit for your individual retirement goals and needs.

Elizabeth Peraza can help to choose the right one for you and your needs,