An annuity is a financial product that provides a guaranteed income stream, typically during retirement, in exchange for a lump-sum payment or series of contributions. Offered by insurance companies, annuities can be structured as fixed, variable, or indexed, allowing growth potential while providing predictable payouts. They are ideal for individuals seeking financial security, helping manage longevity risk and ensure a steady cash flow. Annuities can supplement pensions, RRSPs, or other retirement savings, offering peace of mind.