Fixed index annuities (FIAs) provide the ability to earn interest and create a stream of lifetime income through annuity options or, if offered, a guaranteed lifetime withdrawal benefit (GLWB) rider, while being protected from market loss. GLWB riders typically allow you to maintain access to your contract value while preserving the flexibility of guaranteed income.
Fixed index annuities offer an opportunity for growth from interest crediting. Generally, index accounts are credited with indexed-linked interest, if any, annually.1 If offered, fixed accounts are credited with interest daily.
Fixed index annuities provide lifetime income via annuitization or a guaranteed lifetime withdrawal benefit rider (elected at application for an additional cost).
Fixed index annuities protect contract value from market loss, whether you focus on asset growth or lifetime income. In years where there is little or no interest credited, however, the costs for riders such as a guaranteed lifetime withdrawal benefit may slightly decrease contract value.
1Generally, index-linked Interest may be earned if the external index has a positive return, up to a cap rate. If it has a negative return, no index-linked interest will be credited, thus offering full protection from market loss.
Retirement savings plans need to account for longevity as more Americans are living longer.