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There are many different ways to think about retirement, and your dreams may not appear on anyone’s bucket list but your own. No matter how you envision retirement, having the freedom to live life your way will depend, at least in part, on having a secure source of reliable income. Annuities are one of the few sources of retirement income that can guarantee income for life.

How do annuities work?

It really depends on the annuity. Some are designed to help you accumulate savings for long-term goals like retirement. Other annuities focus on providing a guaranteed income stream that begins either immediately or in the future.

Do I need an annuity?

A longer lifespan can translate into a longer retirement, so your savings may have to go further and last longer. A deferred annuity can help you to accumulate assets more tax efficiently and, when the time is right, convert them into income you can’t outlive.

Product Type
Key Considerations
Death Benefit Protection
Lifetime Income Option(s)
Deferred Fixed Annuity
  • Guaranteed fixed interest rate
  • Tax-deferred2 growth
  • Principal protection
Tax-deferred accumulation

Variable Annuity
  • Tax-deferred2 growth potential
  • Range of investment choices
  • Potential for loss in value
Tax-deferred accumulation

Fixed Index Annuity
  • Interest is credited to an index account based in part on the performance of an external index
  • Tax-deferred growth
  • Market loss protection
Tax-deferred growth or, if a guaranteed lifetime withdrawal benefit is elected, meeting predictable income goals.

Immediate Income Annuity
  • Guaranteed income begins within 13 months of contract issue
  • Single purchase payment
  • Limited liquidity
Immediate income needs
Depends upon annuity option chosen

Deferred Income Annuity (DIA)
  • Flexible purchase payments
  • Guaranteed income generally begins no earlier than 13 months after contract issue
  • No liquidity (limited exceptions on some products)
Future income needs
Most DIA options provide for a return of purchase payment(s) if you die before income payments begin. After annuity income payments begin, any death benefit payable will be based on the annuity option you have chosen.