A Defined Benefit Annuity is ideal for individuals seeking guaranteed lifetime income, particularly those nearing retirement or already retired. It’s well-suited for risk-averse individuals who want predictable cash flow, protection from outliving savings, and tax-deferral benefits, especially if they prioritize stability over high returns.
It delivers a fixed payout amount based on factors like age and contributions, ensuring stable, reliable cash flow. The annuity grows tax-deferred, allowing for potential growth without immediate tax implications.
This type of annuity is ideal for those seeking low-risk, long-term income, as it’s not influenced by market fluctuations and provides peace of mind through consistent payments.