What is a regular income payment for a fixed period or the duration of an individual's life called?

The term for a regular income payment provided for a fixed period or for the duration of an individual's life is known as an annuity. An annuity is a financial product that allows individuals to convert a lump sum of money into a stream of income, typically during retirement. Annuities can be structured to provide payments for a specified time frame or until the annuitant's death, ensuring that individuals receive consistent payments that can help cover living expenses and provide financial security.

This mechanism is beneficial for managing retirement income, as it offers predictability and helps individuals budget their expenses. The structure of annuities can vary, with some focusing on immediate payments upon investment, while others may defer payments until a later date, allowing the investment to grow over time.

Understanding the concept of annuities is essential for individuals planning for retirement, as they play a significant role in providing a reliable source of income.