An annuity

Immediate annuities allow you to hand over a chunk of your retirement savings to an insurance company in exchange for guaranteed monthly payments for the rest of your life. The costs and fees of some annuities can be high, and you generally won't be able to pass the money you use to purchase an annuity on to heirs. But you gain a predictable monthly income, even if you live past age 100 or the stock market takes another dive, as long as the insurance company stays in business. "With the insurance company annuity, the insurance company guarantees that the money will last the rest of your life no matter how long you live," says Steve Vernon, a fellow of the Society of Actuaries and author of "Money for Life: Turn Your IRA and 401(k) into a Lifetime Retirement Paycheck." "If you want that lifetime guarantee, you are going to have to trade off access to your money. With most annuities, once you give your money over to the insurance company, you can't get it back other than the monthly paycheck."