Annuities for retirement
Get a guaranteed stream of income to help pay expenses after you stop working.
What is an annuity?
You’re saving to build a nest egg for retirement. But once you stop working, how will you get a regular income to live on? Annuities are a retirement vehicle that can help provide a steady, guaranteed stream of income in retirement. And, you can contribute to an annuity as part of your retirement strategy alongside any contributions you make to a 401k or an IRA.
What type of annuity is right for you?
There are several types of annuities, and many provide tax-deferred growth. How do you want your money to be invested? When do you need to start receiving income? Different annuities are designed to meet different needs.
Immediate annuities
Most annuities are "deferred" – you invest for a number of years and then take income later. Immediate annuities start paying within a year: You make a single, lump-sum payment, then we distribute income based on the schedule you choose (i.e., for a select period, or life).
Learn More
Fixed deferred annuities
A fixed annuity is a long-term retirement investment for people who want predictability. You’ll receive a guaranteed rate of return on the premium you contribute. And, when you’re ready to retire, you can receive guaranteed income payments.
Learn More
Fixed index annuities
This annuity can provide both premium protection and growth potential, allowing you to benefit when the market performs well and protection when it does not. They provide a minimum guaranteed interest rate combined with potential growth tied to a specific index.
Learn More
Variable annuities
If you want to invest your money over the long term and take advantage of potential growth of the financial market, look at variable annuities*. They also provide the opportunity for you to earn tax-deferred savings until you're ready to receive guaranteed income payments from the annuity.
Learn More
Annuity benefits comparison chart
Immediate
Fixed
Fixed indexed
Variable
Can provide guaranteed income for life
Immediate start to income
Tax-deferred principal growth
Inflation/cost-of-living adjustments
Potential for market-like returns on your principal amount that is tied to market or index performance
Protection against market losses
Potential legacy for heirs
Note: The benefits listed are generally available for the type of annuity noted, but may not be included in a specific annuity holder’s contract: each annuity contract is unique and tailored to the owner’s needs.
Why consider an annuity
For most people, annuities are an additional way to plan for retirement, along with an IRA, 401(k), or pension. They can help simplify the task of turning a large retirement savings nest egg into regular income. And, by providing a lifetime guaranteed income stream, they can help ensure you don't outlive your money.
Top 5 things to know about annuities
How an annuity works
An annuity is a contract with an insurance company that can guarantee income for a set period of time (e.g., 10 years) or indefinitely (i.e., the rest of your life). Immediate annuity contracts begin paying within a year of purchase; deferred annuities let you build savings while you’re working and convert it to a stream of income later on.
Learn about immediate and deferred income annuities
Where it fits in your plan
An annuity can be an important part of your financial plan, along with life insurance and other investments. No matter where you are in your retirement strategy — or how much you need to save for other life goals — we can provide guidance on saving and investing to help you retire the way you want.
Try our retirement planner
Who is an annuity for?
Whether you’re about to retire or still years away, you should consider getting an annuity if you want a steady, guaranteed monthly income to live on in retirement. An annuity contract is one of the only investments available that can guarantee you’ll have income for life.
Annuities can provide three significant benefits for your retirement
Frequently asked questions about annuities
Immediate annuities: Also called immediate income annuities, these provide a guaranteed stream of income right away in return for a single lump sum payment. The amount of income is calculated according to set annuity factors.
Fixed annuities: This could refer to a deferred income annuity or a deferred fixed annuity that provides income at a future date in return for one large sum or periodic payments that grow over time based on a fixed interest rate.
Variable annuities: These are annuities that grow over time based on market investments which can fluctuate and provide income at a future date. However, a variable annuity provides fewer guarantees than other annuity contracts and may decrease in value.
Fixed indexed annuities: These are designed to provide market growth potential, like a variable annuity, and premium protection. A fixed indexed annuity gives you the potential for growth tied to a specific market index, such as the S&P 500, but is typically capped; in addition, a minimum guaranteed interest rate protects you from losses.
