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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?

You may consider an annuity as your primary source of retirement income, as a supplement to an existing IRA you own, or to bolster your income from a retirement plan offered through your employer.

A retirement annuity can help you accumulate 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.

Unlike other retirement options, annuities are not subject to IRS contribution limits (although certain contracts may have a maximum limit) – a good fit if you’ve maxed out your 401(k) or other retirement vehicles.

Income now or income later?

The type of annuity you choose should partially be based on when you want to begin receiving payments. A financial advisor can help you choose the annuity product that is suited to helping you reach your retirement income goals.

Income now

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, at a frequency of your choosing: monthly, quarterly, semi-annually or annually. It’s an easy way to generate a guaranteed source of income to meet your routine expenses, or to assure that your retirement savings last as long as you do.

Income later

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, any asset growth is tax deferred, which means taxes aren’t owed until you withdraw money – typically at retirement. Tax deferral allows you to grow your assets faster, because gains aren’t reduced annually by taxes.

Deferred annuities offer different approaches to growing your 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?

In the past, traditional pension plans and Social Security may have been enough to provide for a comfortable retirement.

Today, it’s become more challenging to secure and live off these sources of retirement income. That means your personal savings plays a more significant role in helping you fuel your retirement years.

Retiree sources of income

Social Security: 43%; Pension/retirement plan: 25%; Employment earnings: 11%; Interest and dividends: 11%; Other: 10%

LIMRA Fact book on retirement income, 2015

Retirement savings at work

You may also participate in a retirement savings program offered by your employer such as a 401(k), 403(b) or other defined-contribution program.

These plans are also important vehicles to help you build your retirement savings and live the life you want after you retire. You have a variety of methods to save and fund your retirement.


An annuity is intended to be a long-term, tax-deferred retirement vehicle. Earnings are taxable as ordinary income when distributed, and if withdrawn before age 59½, 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. Qualified distributions from a Roth IRA are generally excluded from gross income, but taxes and penalties may apply to non-qualified distributions. Please consult a tax advisor for specific information. 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 and claims paying ability of the issuing company.

Not a deposit – Not FDIC insured – Not insured by any federal government agency – Not guaranteed by any bank or credit union – May go down in value.

Product availability and features may vary by state.

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.


DOFU 9-2016

Ready to learn more?

A financial advisor can help you choose the annuity product that is suited to helping you reach your retirement income goals.

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When it comes to saving for your retirement journey, preparation is everything.

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