Fixed annuities are one type of annuity designed to provide predictable growth and income. With a fixed annuity, the insurance company typically offers a specified interest rate or income structure according to the terms of the contract.

Because of this structure, fixed annuities are often associated with stability and predictability. Individuals who prefer consistent financial outcomes may find this approach appealing when planning for retirement income.

Fixed annuities may allow individuals to accumulate funds over time and later convert those funds into scheduled payments during retirement. The exact structure depends on the specific annuity agreement.

Some retirees appreciate the simplicity of knowing that a portion of their retirement income is structured in advance rather than relying entirely on fluctuating investment markets.

As with any financial decision, understanding the details of the annuity contract is important. Fixed annuities are one of several options individuals may explore when developing a retirement income strategy.