Protect Your Income with a Retirement Annuity
Outliving your money is one of the top retirement concerns. However, nobody can predict how much income they will need in retirement. Still, planning for a lifetime income is possible. Planning for retirement income involves finding a balance between reward and risk, preserving your money, and growing it. So, protecting your income with a retirement annuity may be a good option.
Key Benefits of a Fixed Index Annuity (FIA)
An FIA provides principal protection in a down market. Also, it can provide growth potential in a rising market.
- Guaranteed* income for life
- Tax-deferred growth
- Unlimited contributions
- Protection against market losses
- Interest earned is based on the performance of an index
- Protection for your beneficiaries
Additional Benefits with a Retirement Annuity
A fixed index annuity provides a few extra benefits. Insurers take on the risk with an FIA. So, your income is protected in retirement.
Annuities are subject to surrender charge periods. Timeframes can vary but are usually between five and ten years long. As long as you follow the terms of your contract, you will not lose money placed in your annuity. Also, interest credited to the contract is locked in.
A fixed index annuity gives you control over your retirement income. In the accumulation phase, your money grows. You begin receiving payments once the accumulation phase is over. In retirement, you can receive a guaranteed income from the contract. The contract value determines what your monthly payments are.
You can receive annuity payments in two ways. Annuity payments or income withdrawals. Both types of payments are taxed differently. Annuitizations are made annually and part of them may also be tax-free. While the other part may be taxed if you earn interest. Annuity payments may be refunded in some cases. Another option is to withdraw your income and pay taxes then. Talk to a tax professional to discuss your options. You can contact us if you have any questions regarding a guaranteed lifetime income annuity.
Your beneficiary receives a fixed annuity when you die. And, a death benefit may be paid after income payments have been made. Your beneficiaries may also receive a lump sum. Those who do not expect to receive annuity income may benefit from fixed index products.