Single Premium Immediate Annuities
Single Premium Immediate Annuities — Get income starting right now, for as long as you need it.
These annuities make retirement planning easier, because they are simple.
Invest for immediate income
Like all annuities, a SPIA is a contract with an insurance company that provides a stream of income in exchange for a premium payment. A SPIA allows you to begin receiving income right away, rather than waiting for some future date. The size of your premium determines how large your income payment will be. Receiving income for the remainder of your life is an option available under most SPIA’s.
Fixed or variable?
A Single Premium Fixed Immediate Annuity pays a steady amount of income for the duration of the contract, based on a fixed interest rate. The duration of your payments will be determined by the value of your premium and your interest rate. If electing income for life, your size of your income payment will be determined by the value of your premium, your interest rate and your life expectancy.
A Single Premium Variable Immediate Annuity works much the same way but your payments will fluctuate depending on the performance of the underlying investments, options, or subaccounts. This gives you the potential for growth, which may increase your income payments. The risk associated with a variable payment is that if the markets go down, your account balance and income payment would be reduced.
Ready to learn more?
These investments can make retirement planning easier and may enable you to withdraw a higher percentage than you could safely take from a portfolio of stocks, bonds or mutual funds. If you’d like to learn more about how a SPIA can provide immediate income with a host of customizable options, call ING Financial Partners today.
You should consider the investment objectives, risks and charges, and expenses of the variable annuity and its underlying investment options carefully before investing. The prospectus for the variable annuity and underlying investment options contain this and other information. You may obtain a free prospectus by calling your financial professional. Please read the prospectus carefully before investing.
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Variable annuities are long-term investments designed for retirement purposes. A 10% federal penalty may apply for withdrawals prior to age 59 ½. Money taken from the annuity will be taxed as ordinary income in the year the money is distributed. Variable annuity subaccounts fluctuate with market conditions, and when surrendered, the principal may be worth more or less than the original amount invested. An annuity is not necessary for the plan’s favorable tax treatment, but offers other features which may be valuable to you. Annuities are subject to additional fees and expenses to which other tax-qualified funding vehicles may not be subject.
IRAs and other qualified plans already provide tax-deferral like that provided by an annuity. Additional features and benefits, such as contract guarantees, death benefits and the ability to receive a lifetime income are contained within the annuity for a cost. Please be sure the features other than tax deferral and costs of the annuity are right for you when considering the purchase of the annuity for IRAs or other qualified plans.
Withdrawals are subject to income tax and withdrawals prior to age 59 ½ are subject to a 10% tax penalty unless an IRS exception applies.
Guarantees, such as guaranteed income benefits, associated with annuities are subject to the claims-paying ability of the issuer.
Securities offered through ING Financial Partners (member SIPC).
Subject to state availability, not all products are available in every state.