An annuity is a contract between you and an insurance company in which the company promises to make periodic payments to you, starting immediately or at some future time. Some annuity contracts provide a way to save for retirement. Others can turn your savings into a stream of retirement income. Still others do both. A fixed indexed annuity is a tax-deferred, long-term savings option that provides principal protection in a down market and opportunity for growth. It gives you more growth potential than a fixed annuity along with less risk and less potential return than a variable annuity. As part of your retirement strategy, it’s important to know that you’ve covered your core expenses – things like food, housing, health care, and taxes. But even if you’ve saved enough, over a long retirement your income may not keep pace with inflation.