Create the retirement story you want with an annuity
How do you anticipate spending your retirement? Exploring new passions, spending more time with family and friends, volunteering, traveling? An annuity can help accumulate retirement assets and provide multiple options for taking retirement income – including the option to receive a steady stream of guaranteed income for life – so you can make the most of your well-deserved retirement years.
Income now or later?
An immediate annuity offers the opportunity to generate a guaranteed stream of income, starting within a year after purchase. Your initial lump sum of money is converted into a series of income payments, in a frequency of your choosing: monthly, quarterly, semi-annually or annually.
A deferred annuity offers the opportunity to grow your assets while you wait to begin receiving your future income stream. During this time of accumulation, your assets grow tax deferred. In other words, you will not pay any taxes on your investment gains until you begin receiving income from your annuity investment. Tax deferral allows you to grow your assets faster, because gains aren’t reduced annually by taxes.
There are different types of deferred annuities, each with a different way of growing assets.
- Fixed deferred annuities offer guaranteed growth at a specific interest rate, making them a lower-risk, predictable investment.
- Variable deferred annuities offer the ability to invest your contributions in variable investment options, making them a good fit for those who want market participation and are prepared to face market risk.
What will fuel your retirement years?
Retirees today rely heavily on sources of limited income. In fact, for many retirees, Social Security and employment earnings account for 54% of their income. Instead of setting for what you get from others, consider maximizing what you can put away in your own retirement plan and personal savings. That means income you control could play a greater role in funding your financial strategy.
Current sources of retiree income
Source: LIMRA Retirement Income Reference Book, 2012.
Retirement made easier
Annuities won’t take care of every financial retirement issue you’ll face, and they’re not a perfect fit for everyone. However, annuities can go a long way toward making the financial side of retirement less challenging. Take a look at our Retirement Made Easier brochure to learn how annuity income can simplify your retirement.
An annuity is a long-term, tax deferred investment vehicle designed for retirement. Earnings are taxable as ordinary income when distributed, and if withdrawn before age 59 ½, may be subject to a 10% federal tax penalty. If the annuity will fund an IRA or other tax qualified plan, the tax deferral feature offers no additional value. There are charges and expenses associated with annuities, such as deferred sales charges for early withdrawals. Variable annuities have additional expenses such as mortality and expense risk, administrative charges, investment management fees and rider fees. Variable annuities are subject to market fluctuation, investment risk and loss of principal.
This information should not be considered tax advice. You should consult your tax advisor regarding your own tax situation.
Guarantees are based on the financial strength of the issuing company.
Products are not federally (FDIC/NCUA) insured – May lose value – No financial institution guarantee.
You should consider the investment objectives, risks, charges and expenses of a portfolio and the variable insurance product carefully before investing. The portfolio and variable insurance product prospectuses contain this and other information. You may obtain a copy of the prospectus from your representative. Please read the prospectuses carefully before investing.