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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


Guarantees are based on the financial strength and claims paying ability of the issuing company.

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 Earnings are taxable as ordinary income when distributed, and if withdrawn before age 59½, may be subject to a 10% federal tax penalty.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. There are charges and expenses associated with annuities, such as deferred sales charges for early withdrawals.

Product availability and features may vary by state.

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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