Insurance Solutions
Annuities & Retirement Income
Annuities are insurance products designed to provide income — either immediately or in the future. Understanding how different types of annuities work can help you evaluate whether they belong in your retirement income plan.
Fixed Annuities
A fixed annuity credits a guaranteed interest rate for a specified period. It provides predictable, tax-deferred growth and is generally considered a conservative option for accumulating retirement savings.
Fixed Indexed Annuities
A fixed indexed annuity (FIA) credits interest based in part on the performance of a market index, such as the S&P 500, while protecting against market losses. FIAs offer the potential for higher credited interest than traditional fixed annuities, with a floor of zero percent in down markets.
Multi-Year Guaranteed Annuities (MYGAs)
A MYGA guarantees a fixed interest rate for a set number of years — similar to a bank CD but with tax-deferred growth. MYGAs are often used by retirees seeking predictable returns without market exposure.
Income Riders
Many annuities offer optional income riders that guarantee a minimum level of lifetime income, regardless of market performance. Understanding how income riders work — including their costs, benefit base calculations, and payout options — is important before adding one to a policy.
Lifetime-Income Options
Annuitization converts an annuity's accumulated value into a stream of income payments that can last for life. Different payout options — life only, joint and survivor, period certain — offer different trade-offs between income amount and beneficiary protection.
Accumulation and Protection
Some clients use annuities primarily for tax-deferred accumulation and principal protection, rather than for income. Understanding the difference between accumulation-focused and income-focused annuity strategies helps clarify which product features matter most.
Liquidity and Surrender Considerations
Most annuities have surrender periods during which withdrawals above a free-withdrawal amount are subject to surrender charges. Understanding the surrender schedule, free-withdrawal provisions, and any market value adjustments is essential before purchasing an annuity.
Schedule an Annuity Consultation
Let's discuss how annuities might fit — or not fit — your retirement income plan. No pressure, no obligation.
Schedule a ConsultationAnnuity products are subject to eligibility, underwriting, policy terms, and state availability. Annuities are not bank products and are not insured by the FDIC or any federal government agency. Information is educational only and does not constitute a recommendation or offer of insurance. Coverage cannot be created or changed through this website.