Unlike other types of annuities, the money in a fixed deferred annuity grows at a guaranteed minimum interest rate.That means your account value will never go down unless you choose to make withdrawals.
Fixed deferred annuities give you the choice to receive guaranteed payments for the rest of your life. This predictable income stream can help you plan for the goals you want to achieve during retirement.
The money in your annuity accumulates on a tax-deferred basis. That means you do not pay taxes on your earnings until you withdraw the money. Because of tax deferral, your money may grow faster in an annuity than it might in a similar, taxable investment.
In the event of your death, your annuity's account value will be paid directly to your beneficiary.
With most fixed annuities, you can access a portion of your money each year after the first year without any withdrawal charges. And after a certain length of time most fixed annuities will allow you to access your money whenever you choose or to receive automatic withdrawals without paying withdrawal charges. Finally, when you're ready, you can turn the value of your annuity into a guaranteed stream of income that will last as long as you live.1
Buying an annuity from a reliable company with a strong financial history gives you the confidence to know your money will be there when you need it.
With guaranteed rates and easy-to-understand payment options, fixed deferred annuities are one of the most straightforward retirement savings options available.
To minimize taxes, you can time your withdrawals to begin in later years, when your taxable income may be less.