Which feature of annuities can provide financial security during retirement?

The feature of annuities that can provide financial security during retirement is the guaranteed income for life. This characteristic is particularly important because it ensures that individuals will have a reliable source of income throughout their retirement years, regardless of market fluctuations or other unpredictable financial events.

This guaranteed income can alleviate concerns about outliving one's savings, which is a common worry for retirees. Knowing that they have a fixed stream of income allows retirees to plan their expenses more effectively and maintain a stable quality of life. The predictability of this income can provide peace of mind as it offers a hedge against inflation and economic uncertainty.

In contrast, while access to a cash withdrawal option could be beneficial in certain situations, it does not guarantee ongoing financial support for the long term. Similarly, investments in stocks and bonds or high-risk mutual fund options involve a level of risk and volatility that may not align with the goal of achieving consistent income during retirement. These options might provide growth potential but do not offer the same level of security that a guaranteed income provides, making them less suitable for retirees seeking stability in their financial planning.