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How Annuities Work: Should I Choose a Partial Lump Sum or Higher Monthly Pension Payments?
Many people wonder “what is an annuity?” and “how do annuities work?”. Annuity payments are part of a long-term investment strategy issued by an insurance company to prevent you from outliving your income. These periodic payments can last for years or for the rest of your life. With flexible annuity payments, you can invest over time, receive payments now or defer them to a later date, and choose a rate of return that is fixed, variable, or indexed.