Which type of annuity should Lauren purchase to guarantee income for life upon retirement?

Selecting a straight life income annuity is an excellent choice for Lauren if her goal is to secure guaranteed income for her entire life upon retirement. This type of annuity provides a fixed income stream for the lifetime of the annuitant, meaning that no matter how long she lives, she will continue to receive payments. This feature addresses one of the primary concerns that retirees face—outliving their savings—by ensuring a stable income regardless of external economic factors.

In the case of a straight life income annuity, the payments commence right away and continue for as long as the individual is alive. It does not include any additional features like survivor benefits, which provides a clear advantage if the sole aim is to secure income for the individual’s lifetime.

Other types of annuities offer different benefits but may not fulfill the requirement for guaranteed income upon immediate retirement. For instance, a variable annuity is subject to market fluctuations, which means that the income is not guaranteed and can vary over time based on the performance of underlying investments. A deferred annuity, on the other hand, allows savings to grow and provides income at a future date, rather than immediately upon retirement. An immediate annuity is designed to provide income right away but may not specify the guaranteed duration