Annuities provide a regular and predictable income stream, which can be especially beneficial for retirees looking for a reliable source of income. There are different types of annuities, such as immediate annuities, that start payments shortly after the initial investment.

Fixed annuities provide a guaranteed interest rate, offering a level of security and stability for conservative investors. This can be appealing for those who prioritize preserving their principal amount and are risk-averse.