Annuities are financial products that provide a guaranteed stream of income in exchange for an initial lump sum payment. They are commonly used for retirement income planning.

The main advantage of annuities is their ability to provide a guaranteed stream of income for life, which can help retirees avoid outliving their savings. Annuities can also provide a hedge against inflation and market volatility, and may offer tax advantages.

The main disadvantage of annuities is their lack of flexibility and liquidity. Once an annuity is purchased, it is difficult to access the funds without incurring significant fees and penalties. Annuities can also be expensive and may have complex fee structures that are difficult to understand.

Alternative retirement income strategies may include portfolio withdrawal strategies, such as the 4% rule, or a combination of annuities and other income-producing investments. It is important to work with a financial advisor to determine the best strategy for your individual needs and goals.