Income annuities provide a secure source of income for retirement and are generally a low-risk financial product. They are attractive to individuals who want the assurance the periodic payments will last for the remainder of their life, regardless of how long that may be. The total investment is irreversible and no additional premium payments can be made.

The buyer of an income annuity does not remain involved in management of the funds, once the initial financial transaction is completed. Instead, he or she receives periodic income from an insurance company, who invest the funds and assumes all risk of return of the funds.

Income annuities come in many forms, such as fixed annuities and variable annuities, each with its own features. Fixed annuities provide steady payment amounts that never change, while variable annuities offer a more flexible approach with more potential to grow. There are also many ancillary features that can be added to enhancement the product such as inflation protection, survivor benefits, and guaranteed minimum benefits.

When choosing an income annuity, it is important to consider the annuitant's age, health history, income needs and other financial objectives. An annuitant should also discuss their goals with a trusted financial advisor or insurance agent in order to ensure that the most appropriate income annuity is found.

An income annuity is an effective and efficient way for retirees to ensure a steady stream of income for life and gain the peace of mind that comes with having a financially secure future with income protection. It creates a predetermined set of payments with only a singular investment, offering a tremendous value in retirement income planning.