What type of return does a fixed dollar (conventional) annuity provide?

A fixed dollar annuity, also known as a conventional annuity, provides a guaranteed constant rate of return. This means that the annuity will deliver a predetermined interest rate over a specified period, which does not fluctuate with market conditions or investment performance. This feature makes fixed dollar annuities appealing to individuals seeking stable income and predictability in their investment returns. The guarantee ensures that the investor will receive consistent payments, regardless of the economic environment or investment performance, in contrast to variable annuities that depend on the success of underlying investments. This characteristic plays a significant role in retirement planning and saving strategies.