Guaranteed income later
Fixed deferred annuities offer guaranteed growth at a specific interest rate, making them lower-risk and predictable – which may make them a good fit if you want a guaranteed rate of return.
How fixed deferred annuities work
When you purchase a fixed deferred annuity, you receive a guaranteed interest rate for a fixed amount of time.
When that time period is up, you’ll be offered a new interest rate for a new time period. Most fixed annuity contracts have a stated minimum interest rate, a guarantee that ensures you will never earn less than the minimum stated interest rate.
When you are ready to begin receiving income from your annuity, at retirement or age 59½, you can withdraw money from your contract or select from a range of income options that help structure an income that’s guaranteed for your lifetime, a set period of time, for joint lives, and/or to provide for beneficiaries.
Benefits to you
- Guaranteed protection of your principal against investment loss
- Guaranteed interest rate for a set period of time
- Tax deferral, which allows you to potentially grow assets faster
- Options for receiving income in retirement, including the ability to create a guaranteed stream of income that can’t be outlived