Part 4/8:
Defined Benefit Pension: This is a traditional retirement plan where an employer guarantees a specific payout upon retirement, paying a predetermined amount monthly until the retirement age or death.
Annuities: Similar to pensions, annuities offer consistent monthly payments to the investor, providing a steady income stream. The underlying investments for these products are often in bonds, which underscores that pension plans and annuities serve the same role in terms of income stability.