Consider annuities to meet your income goals.
Annuities can be an important part of your retirement strategy. They provide regular payments, steadying the flow of retirement income, and typically offer tax-deferred growth of earnings.
Depending on your needs, an annuity may help you save for retirement, protect your savings from loss, and may include a death benefit that will pay your beneficiary a specified minimum amount.
Fixed immediate annuities provide income as soon as one month after investment at guaranteed rates or payouts. Variable immediate annuities operate similarly except the payout may vary based on underlying investment performance.
A deferred annuity allows for a one-time payment or flexible premium payments over a period of time to accumulate savings on a tax-deferred basis.
A fixed annuity has a minimum guaranteed fixed rate of return for a specific number of years. These policies may also include a bonus for premiums deposited.
An indexed annuity is a fixed annuity, either immediate or deferred, that earns interest or provides benefits that are linked to an external stock or bond index or indexes. Two of the most common indexes used for these types of annuities are the Standard & Poor’s 500 Composite Stock Price Index (the S&P 500), which is an equity index, and Barclays, a top-rated bond index that may be used as the underlying account in an indexed annuity. The value of any index varies from day to day and is not predictable. Most indexed annuities have a floor component that the value of the annuity cannot fall below.
Variable annuities are long-term, tax-deferred investments to help you save for retirement. Variable annuity earnings are contingent upon the performance of the underlying investments held by the annuity.
While variable annuities have the potential to help protect against inflation — and the underlying investments may grow over time — the investor bears the investment risk, as returns are based on the performance of both the financial markets as well as the performance of the underlying investment options.
Today’s variable and indexed annuities offer both guaranteed death benefit and income enhancements, generally called riders, despite poor market performance. These enhancements typically are offered for an additional cost that can vary widely, and any guarantees are based on the financial strength and claims-paying ability of the insurer.
If you decide to take your money out early, however, the amount of your death benefit and the contract value may be reduced.
If you’re looking for another retirement income source, annuities may be right for you.
Annuities are long-term financial products designed for retirement purposes. Annuity and life insurance guarantees are based on the financial strength and claims-paying ability of the issuing insurance company. The guarantees have no bearing on the performance of a variable investment option. Variable investment options are subject to market risk, including loss of principal. There are charges and expenses associated with annuities and variable life insurance products, including mortality and expense risk charges, management fees, administrative fees, expenses for optional riders and deferred sales charges for early withdrawals. Withdrawals before age 59½ may be subject to a 10% IRS tax penalty and surrender charges may apply. Enhanced death benefits and living benefits are offered for an additional cost.
You should consider the investment objectives, risks, charges and expenses of an underlying fund and the variable insurance product carefully before investing. The underlying fund prospectuses and variable insurance product prospectuses (available from your financial advisor or applicable insurance company) contain this and other information. Please read the prospectuses carefully before investing.