What Does Retirement Annuity (IRA) Mean?
A retirement annuity is a financial tool that is used to help prepare for retirement. People pay into the annuity during the accumulation phase then, once the policyholder reaches a certain age, the annuity pays out money according to a schedule.
Many life insurance companies offer retirement annuities as a benefit of their policies.
Insuranceopedia Explains Retirement Annuity (IRA)
The goal of a retirement annuity is to provide a fixed income for a person's later years, when they are likely to have ceased working.
Retirement annuities can have certain tax advantages, which is another reason people use them as an investment vehicle.
Retirement annuities are very similar to retirement accounts. Both are often referred to as IRA's, which stands for "individual retirement annuity" and "individual retirement account," respectively.