Fixed Annuities

Fixed Annuities — Guaranteed rates without guesswork


Fixed Annuities — Guaranteed rates without guesswork

Fixed annuities are a popular choice among retirement investors. In a changing economy, they provide a guaranteed, fixed rate of return and are often less complex. Your premium can be a lump sum or a series of payments over time. The insurance company holds your money for a specific period of time and pays you a guaranteed interest rate. One factor that determines the interest rate paid is the length of time the insurance company holds the premiums. The longer the period of time, the higher the interest rate they will pay you. Simple.

Interest payments with protection

You might consider a fixed annuity if you:

Best suited for those who want security and stability.

Income Needs Calculator

Funding your retirement vision.

  • Want protection from market volatility. Your interest rate stays the same regardless of how the market behaves.
  • Want to earn a competitive interest rate. You can potentially choose a longer annuity contract term to get higher interest payments.
  • Want a guaranteed return. The insurance company guarantees your interest payment no matter what happens in the markets.
  • Want tax deferral for some of your retirement savings. Then, as long as you are over age 59 ½, you only pay taxes on the interest payments you eventually receive from the annuity.
  • Want a death benefit. A death benefit payment can be paid to your named beneficiaries without going through probate, the time consuming and costly process where a court organizes and distributes assets from a deceased person’s estate.
  • Want income. Annuities allow you to convert the investment into an income stream at some point in the future. 

Predictably predictable

If you’re someone who wants to stay away from risks in the market and you like the idea of securing a fixed, stable interest rate for a predetermined period of time, a fixed annuity may be worth considering. And as with all annuities, your premium can be turned into income payments in the future. Keep in mind the income should start at some point after age 59½. You can spend time enjoying life instead of constantly checking on your retirement savings.